Press Release Archive

PGi Announces Third Quarter 2015 Results: Non-GAAP Revenue $141.1M*, Non-GAAP Diluted EPS from Continuing Ops $0.23*, UC&C SaaS Non-GAAP Revenue Up 71% to $89M* Annual Revenue Run-Rate

Oct 29, 2015

ATLANTA, Oct. 29, 2015 /PRNewswire/ -- Premiere Global Services, Inc. (NYSE: PGI), the world's largest dedicated provider of collaboration software and services, today announced results for the third quarter ended September 30, 2015.

In the third quarter of 2015, net revenue totaled $141.0 million, including an estimated negative impact of $6 million from year-over-year changes in foreign currency exchange rates. Non-GAAP revenue totaled $141.1 million* in the third quarter of 2015. Unified communications and collaboration (UC&C) SaaS non-GAAP revenue grew 71%, totaling $22.3 million* in the third quarter of 2015, compared to $13.0 million* in the third quarter of 2014. Diluted EPS from continuing operations was $0.08 in the third quarter of 2015, compared to $0.06 in the third quarter of 2014. Non-GAAP diluted EPS from continuing operations was $0.23* in the third quarter of 2015, compared to non-GAAP diluted EPS from continuing operations of $0.21* in the third quarter of 2014. 

Third Quarter 2015 Results*

($ in millions, except per share data)

3Q14

3Q15

Constant
Currency **

Adjusted
Growth **

Non-GAAP revenue

$140.4

$141.1

$146.6

4.4%

UC&C SaaS non-GAAP revenue

$13.0

$22.3

$23.0

76.6%

Non-GAAP gross margin

58.7%

60.1%

60.0%

130 BPs

Adjusted EBITDA

$24.9

$26.4

$27.2

9.1%

Non-GAAP diluted EPS from continuing operations

$0.21

$0.23

$0.24

14.0%

"We are pleased to report our continuing strong strategic and financial performance, with 71% growth in our UC&C SaaS non-GAAP revenue and record incremental annual contract value (ACV) bookings of $7.6 million sold during the third quarter," said Boland T. Jones, PGi founder, chairman and CEO. "We believe the increase in momentum in our transition to a SaaS model is a result of growing customer demand for our end-to-end suite of iMeet® collaboration applications that help businesses grow, save money and drive productivity."

Nine Month Results 
In the first nine months of 2015, net revenue totaled $427.6 million, including an estimated negative impact of $17 million from year-over-year changes in foreign currency exchange rates. Non-GAAP revenue totaled $428.5 million* in the first nine months of 2015. UC&C SaaS non-GAAP revenue grew 73%, totaling $62.0 million* in the first nine months of 2015, compared to $35.8 million* in the first nine months of 2014. Diluted EPS from continuing operations was $0.22 in the first nine months of 2015, compared to $0.30 in the first nine months of 2014. Non-GAAP diluted EPS from continuing operations was $0.72* in the first nine months of 2015, compared to non-GAAP diluted EPS from continuing operations of $0.67* in the first nine months of 2014.

In light of the proposed acquisition by funds managed or advised by Siris Capital Group, LLC (Siris), PGi will not hold a conference call to discuss third quarter earnings.

* Non-GAAP Financial Measures

The company's non-GAAP revenue, UC&C SaaS non-GAAP revenue and non-GAAP gross margin include the deferred revenue from software licenses and related support contracts from recent acquisitions and excludes the impact of purchase accounting adjustments related to deferred revenue. Adjusted EBITDA and non-GAAP diluted earnings per share (EPS) from continuing operations and projections of these items also exclude equity-based compensation, amortization expenses, non-recurring tax adjustments and related interest, restructuring costs, excise and sales tax expense and related interest, asset impairments, net legal settlements and related expenses, acquisition/divesture-related costs, foreign exchange transaction gains and losses and the impact of purchase accounting adjustments related to deferred revenue. 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. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the attached financial tables. 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. 

** Constant Currency

These constant currency adjustments convert current period results using prior period (Q3-14) average exchange rates calculated in the same manner as in footnote 5 to the Reconciliation of Non-GAAP Financial Measures table. 

About Premiere Global Services, Inc. │ PGi 
PGi is the world's largest dedicated provider of collaboration software and services. We created iMeet®, an expanding portfolio of purpose-built applications designed to meet the daily collaboration and communications needs of business professionals, with solutions for web, video and audio conferencing, smart calendar management, webcasting, project management and sales acceleration. PGi's award-winning UC&C solutions help nearly 50,000 businesses grow faster and operate more efficiently. To learn more, visit us 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: relevant risks and uncertainties relating to the proposed transaction with Siris, including (i) the risk that the merger agreement may be terminated in circumstances that require PGi to pay Siris a termination fee; (ii) risks related to the diversion of management's attention from PGi's ongoing business operations; (iii) risks regarding the failure of Siris to obtain the necessary financing to complete the merger; (iv) the effect of the merger on PGi's business relationships (including, without limitation, customers, strategic alliance partners and suppliers), operating results and business generally; (v) risks related to satisfying the conditions to the merger, including the failure of PGi's shareholders to approve the merger, timing (including possible delays) and receipt of regulatory approvals from various governmental entities (including any conditions, limitations or restrictions placed on these approvals); and (vi) the nature, cost and outcome of any future litigation and other legal proceedings, including any potential proceedings related to the proposed merger; competitive pressures, including pricing pressures; technological changes and the development of alternatives to our services; market acceptance of PGi's UC&C SaaS solutions, including our iMeet® and GlobalMeet® solutions; our ability to attract, retain and expand the products and services we provide to existing customers; our ability to establish and maintain strategic reseller and distribution relationships; risks associated with global economic or market 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, 2014. All forward-looking statements attributable to us or a person acting on our behalf are expressly qualified in their entirety by these cautionary statements. We undertake no obligation to publicly update or revise these forward-looking statements for any reason.

Additional Information and Where to Find It 
This communication may be deemed to be solicitation material in respect of the proposed merger among PGi, Pangea Private Holdings II, LLC, a Delaware limited liability company (Parent), and Pangea Merger Sub Inc., a Georgia corporation (Merger Sub).  Parent and Merger Sub are affiliates of Siris. In connection with the proposed merger, PGi has filed a definitive proxy statement with the Securities and Exchange Commission (SEC) on Schedule 14A on October 26, 2015 and may file other relevant documents concerning the proposed merger. The definitive proxy statement was mailed to shareholders of PGi on or about October 27, 2015. PGi's SHAREHOLDERS ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS IN CONNECTION WITH THE MERGER THAT PGi WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT PGi AND THE PROPOSED MERGER. PGi's shareholders will be able to obtain, without charge, a copy of the definitive proxy statement and other relevant materials in connection with the proposed merger (when they become available), and any other documents filed by PGi with the SEC from the SEC's website at sec.gov and on PGi's website at pgi.com. PGi's shareholders will also be able to obtain, without charge, a copy of the proxy statement and other relevant documents (when available) by directing a request by mail or telephone to Premiere Global Services, Inc., c/o Sean O'Brien, 3280 Peachtree Road, NE, The Terminus Building, Suite 1000, Atlanta, Georgia 30305, by emailing investors@pgi.com or by calling 1-800-749-9111, extension 8462.

PGi and its directors and officers may be deemed to be participants in the solicitation of proxies from PGi's shareholders with respect to the special meeting of shareholders that will be held to consider the proposed merger. Information about PGi's directors and executive officers and their ownership of PGi's common stock is set forth in the definitive proxy statement. Shareholders may obtain additional information regarding the interests of PGi and its directors and executive officers in the proposed merger, which may be different than those of PGi's shareholders generally, by reading the definitive proxy statement and other relevant documents regarding the proposed merger (when they become available).

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,  






2015


2014


2015


2014


























Net revenue


$   140,967


$ 140,383


$     427,593


$ 427,909


Operating expenses: 











Cost of revenue (exclusive of depreciation and amortization shown












separately below)


56,302


57,965


170,343


176,508



Selling and marketing


37,000


36,813


111,125


112,242



General and administrative (exclusive of expenses


19,336


17,810


60,509


54,815




shown separately below)











Research and development


5,793


5,534


16,385


14,655



Excise and sales tax expense


331


-


331


-



Depreciation


8,886


8,697


26,350


26,248



Amortization


3,962


2,582


12,399


7,549



Restructuring costs


49


68


4,195


68



Asset impairments


1


4,938


151


4,938



Net legal settlements and related expenses


(10)


172


(21)


172



Acquisition/divestiture-related costs


2,421


2,147


6,021


5,838




Total operating expenses


134,071


136,726


407,788


403,033














Operating income


6,896


3,657


19,805


24,876














Other (expense) income:











Interest expense


(2,975)


(2,133)


(8,478)


(6,618)



Interest income


2


5


16


25



Other, net


(1,018)


741


(616)


996




Total other expense, net


(3,991)


(1,387)


(9,078)


(5,597)














Income from continuing operations before income taxes


2,905


2,270


10,727


19,279


Income tax (benefit) expense


(553)


(376)


1,002


5,230


Net income from continuing operations


3,458


2,646


9,725


14,049














Loss from discontinued operations, net of taxes


(119)


(100)


(453)


(283)














Net income


$       3,339


$    2,546


$         9,272


$   13,766














BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING


44,133


45,162


44,365


45,797














Basic net income (loss) per share (1)











Continuing operations


$         0.08


$      0.06


$           0.22


$      0.31



Discontinued operations


-


-


(0.01)


(0.01)



Net income per share


$         0.08


$      0.06


$           0.21


$      0.30














DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING


45,002


45,898


45,028


46,485














Diluted net income (loss) per share (1)











Continuing operations


$         0.08


$      0.06


$           0.22


$      0.30



Discontinued operations


-


-


(0.01)


(0.01)



Net income per share


$         0.07


$      0.06


$           0.21


$      0.30














(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, 




2015


2014







ASSETS




CURRENT ASSETS





Cash and equivalents

$           19,317


$           40,220


Accounts receivable (less allowances of $740 and $557, respectively)

89,347


77,334


Prepaid expenses and other current assets

17,616


13,536


Income taxes receivable

707


1,897


Deferred income taxes, net

10,148


10,447



Total current assets

137,135


143,434







PROPERTY AND EQUIPMENT, NET

100,647


100,954







OTHER ASSETS





Goodwill

410,000


386,416


Intangibles, net of amortization

96,411


102,350


Deferred income taxes, net

2,511


2,342


Other assets

13,810


20,734



TOTAL ASSETS

$         760,514


$         756,230







LIABILITIES AND SHAREHOLDERS' EQUITY




CURRENT LIABILITIES





Accounts payable

$           48,418


$           57,211


Income taxes payable

1,346


2,217


Accrued taxes, other than income taxes

14,177


17,562


Accrued expenses

51,420


37,807


Current maturities of long-term debt and capital lease obligations 

2,199


1,971


Accrued restructuring costs

431


958


Deferred income taxes, net

16


17



Total current liabilities

118,007


117,743







LONG-TERM LIABILITIES





Long-term debt and capital lease obligations 

335,811


332,825


Accrued expenses

34,198


23,219


Deferred income taxes, net

24,824


27,453



Total long-term liabilities

394,833


383,497







SHAREHOLDERS' EQUITY





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





46,753,585 and 47,378,794 shares issued and outstanding, respectively

470


475


Additional paid-in capital

436,060


442,585


Accumulated other comprehensive loss

(16,603)


(6,545)


Accumulated deficit

(172,253)


(181,525)



Total shareholders' equity

247,674


254,990



TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$         760,514


$         756,230













 

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 (Unaudited, in thousands)

























Nine Months Ended







September 30, 







2015


2014










CASH FLOWS FROM OPERATING ACTIVITIES







Net income 


$         9,272


$       13,766



Loss from discontinued operations, net of taxes


453


283




 Net income from continuing operations 


9,725


14,049


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







Depreciation


26,350


26,248



Amortization


12,399


7,549



Amortization of debt issuance costs 


546


491



Net legal settlements and related expenses


(21)


172



Payments for legal settlements and related expenses


(116)


(170)



Deferred income taxes


(1,598)


1,096



Restructuring costs


4,195


68



Payments for restructuring costs 


(4,559)


(1,816)



Asset impairments


151


4,938



Equity-based compensation


9,821


7,544



Excess tax benefits from share-based payment arrangements


(215)


(448)



Provision for doubtful accounts


467


203



Acquisition/divestiture-related costs


6,021


5,838



Cash paid for acquisition/divestiture-related costs


(5,056)


(5,411)



Changes in working capital, net of business acquisitions


(16,556)


(6,460)





Net cash provided by operating activities from continuing operations


41,554


53,891





Net cash used in operating activities from discontinued operations


(508)


(259)





Net cash provided by operating activities


41,046


53,632










CASH FLOWS FROM INVESTING ACTIVITIES







Capital expenditures


(27,997)


(26,562)



Business acquisitions, net of cash acquired 


(16,109)


(55,517)



Other investing activities, net


(301)


2,046





Net cash used in investing activities from continuing operations


(44,407)


(80,033)





Net cash used in investing activities from discontinued operations


-


-





Net cash used in investing activities


(44,407)


(80,033)



















CASH FLOWS FROM FINANCING ACTIVITIES







Principal payments under borrowing arrangements


(81,971)


(99,509)



Proceeds from borrowing arrangements


83,500


137,000



Payments of debt issuance costs


-


(1,060)



Payment of earn-out liability


(1,841)


-



Excess tax benefits of share-based payment arrangements


215


448



Purchases and retirement of treasury stock, at cost


(15,605)


(25,844)



Exercise of stock options


-


963





Net cash (used in) provided by financing activities from continuing operations


(15,702)


11,998





Net cash (used in) provided by financing activities from discontinued operations


-


-





Net cash (used in) provided by financing activities


(15,702)


11,998










Effect of exchange rate changes on cash and equivalents


(1,840)


(1,047)










NET DECREASE IN CASH AND EQUIVALENTS


(20,903)


(15,450)

CASH AND EQUIVALENTS, beginning of period


40,220


44,955

CASH AND EQUIVALENTS, end of period


$       19,317


$       29,505










 


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,



2015


2014


2015


2014

Non-GAAP Revenue (1)









     Net revenue, as reported


$     140,967


$   140,383


$  427,593


$    427,909

     Impact of purchase accounting adjustments related to deferred revenue (2)


143


-


891


-

          Non-GAAP revenue


$     141,110


$   140,383


$  428,484


$    427,909










Non-GAAP Gross Margin (1)









     Gross margin, as calculated


$      84,665


$     82,418


$  257,250


$    251,401

     Impact of purchase accounting adjustments related to deferred revenue (2)


143


-


891


-

          Non-GAAP gross margin


$      84,808


$     82,418


$  258,141


$    251,401

          As a percentage of Non-GAAP revenue


60.1%


58.7%


60.2%


58.8%










Non-GAAP Operating Income & Adjusted EBITDA (1)









     Operating income, as reported 


$        6,896


$       3,657


$    19,805


$     24,876

     Impact of purchase accounting adjustments related to deferred revenue (2)


143


-


891


-

     Equity-based compensation


3,756


2,660


9,821


7,544

     Amortization


3,962


2,582


12,399


7,549

     Excise and sales tax expense


331


-


331


-

     Restructuring costs 


49


68


4,195


68

     Asset impairments


1


4,938


151


4,938

     Net legal settlements and related expenses


(10)


172


(21)


172

     Acquisition/divestiture-related costs


2,421


2,147


6,021


5,838

          Non-GAAP operating income


$      17,549


$     16,224


$    53,593


$     50,985

     Depreciation


8,886


8,697


26,350


26,248

          Adjusted EBITDA


$      26,435


$     24,921


$    79,943


$     77,233










Non-GAAP Net Income from Continuing Operations (1)









     Net income from continuing operations, as reported


$        3,458


$       2,646


$     9,725


$     14,049

     Impact of purchase accounting adjustments related to deferred revenue (2)


103


-


642


-

     Elimination of non-recurring tax adjustments and related interest


(1,355)


(1,158)


(1,903)


(683)

     Equity-based compensation


2,704


1,835


7,071


5,205

     Amortization


2,852


1,782


8,927


5,209

     Excise and sales tax expense


238


-


238


-

     Restructuring costs


35


47


3,020


47

     Asset impairments


1


3,407


109


3,407

     Net legal settlements and related expenses


(7)


119


(15)


119

     Acquisition/divestiture-related costs


1,743


1,481


4,335


4,028

     Foreign exchange transaction (gain) loss (3)


710


(495)


439


(350)

          Non-GAAP net income from continuing operations


$      10,482


$       9,664


$    32,588


$     31,031










Non-GAAP Diluted EPS from Continuing Operations (1) (4)









     Diluted net income per share from continuing operations, as reported


$          0.08


$         0.06


$       0.22


$         0.30

     Impact of purchase accounting adjustments related to deferred revenue (2)


-


-


0.01


-

     Elimination of non-recurring tax adjustments and related interest


(0.03)


(0.03)


(0.04)


(0.01)

     Equity-based compensation


0.06


0.04


0.16


0.11

     Amortization


0.06


0.04


0.20


0.11

     Excise and sales tax expense


0.01


-


0.01


-

     Restructuring costs


-


-


0.07


-

     Asset impairments


-


0.07


-


0.07

     Net legal settlements and related expenses


-


-


-


-

     Acquisition/divestiture-related costs


0.04


0.03


0.10


0.09

     Foreign exchange transaction gain (3)


0.02


(0.01)


0.01


(0.01)

          Non-GAAP diluted EPS from continuing operations


$          0.23


$         0.21


$       0.72


$         0.67










(1)

Management believes that presenting non-GAAP revenue, non-GAAP gross margin, non-GAAP operating income, adjusted EBITDA, 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 operating income, adjusted EBITDA, 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 the impact of purchase accounting adjustments related to deferred revenue, non-recurring tax adjustments and related interest, excise and sales tax expense, excise and sales tax interest, restructuring costs, asset impairments, net legal settlements and related expenses, acquisition/divestiture-related costs and foreign exchange transaction gains and losses. 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)

Business combination accounting principles require us to write-down the deferred revenue associated with software licenses and related support contracts assumed in our acquisitions. The revenue for these support contracts is deferred and typically recognized over a one-year period, so our GAAP revenue for the one-year period after an acquisition does not reflect the full amount of revenue that would have been reported if the acquired deferred revenue was not written down to fair value. The non-GAAP adjustment eliminates the effect of the deferred revenue write-down.  We believe this adjustment to the revenue from these contracts is useful to investors as an additional means to reflect revenue trends of our business.


(3)

Represents the impact of foreign exchange transaction gains and losses included in the Statements of Operations in "Other, net."



(4)

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

(Unaudited, in thousands, except per share data)

(continued)


















Prior Year Quarter Constant Currency Adjustments (5)

















Quarter-to-date



Year-to-date






Q3 - 15
(Constant
currency)


Impact of
fluctuations in
foreign currency
exchange rates


Q3 - 15
(Actual)



Q3 - 15
(Constant
currency)


Impact of
fluctuations in
foreign currency
exchange rates


Q3 - 15(Actual)









(Unaudited, in thousands, except per share data)



(Unaudited, in thousands, except per share data)






















Net Revenue

$             146,568


$                 (5,601)


$       140,967



$       444,640


$           (17,047)


$       427,593





North America Net Revenue

$               90,312


$                    (553)


$         89,759



$       273,541


$             (1,386)


$       272,155





Europe Net Revenue

$               39,256


$                 (3,242)


$         36,014



$       121,786


$           (11,213)


$       110,573





Asia Pacific Net Revenue

$               17,000


$                 (1,806)


$         15,194



$         49,313


$             (4,448)


$         44,865





Non-GAAP Operating Income

$               17,880


$                    (331)


$         17,549



$         54,801


$             (1,208)


$         53,593





Adjusted EBITDA

$               27,201


$                    (766)


$         26,435



$         82,142


$             (2,199)


$         79,943





Non-GAAP Net Income from Continuing Operations

$               10,825


$                    (343)


$         10,482



$         33,559


$                (971)


$         32,588





Non-GAAP Diluted EPS from Continuing Operations

$                   0.24


$                   (0.01)


$             0.23



$             0.74


$               (0.02)


$             0.72



















(5)

Management also presents the non-GAAP financial measures described under note 1 above, as well as net revenue and segment net revenue, on a constant currency basis compared to the same period in the previous year (Q3-14 QTD or YTD) 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 QTD and YTD results using prior period (Q3-14 QTD and YTD) average exchange rates. 

 




Sequential Quarter Constant Currency Adjustments (6)

















Impact of 







Q3 - 15
(Constant
currency)


fluctuations in
foreign currency
exchange rates


Q3 - 15
(Actual)





(Unaudited, in thousands)













 

Net Revenue

$             141,384


$                    (417)


$       140,967

(6)

Management also presents net revenue on a constant currency basis compared to the prior quarter (Q2-15) 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 (Q2-15)

average exchange rates.

 


Organic Growth (7)




















































Impact of














September 30,
2014


fluctuations in
foreign currency
exchange rates


Acquisitions



Organic net
revenue
growth


September 30,
2015


Organic net
revenue
growth rate





(Unaudited, in thousands, except percentages)





















Net Revenue, Three Months Ended

$             140,383


$                 (5,323)


$            9,984



$          (4,077)


$          140,967


-2.9%



Net Revenue, Nine Months Ended

$             427,909


$              (16,276)


$         29,470



$        (13,510)


$          427,593


-3.2%

















(7)

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. 

 

 

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Unaudited, in thousands, except per share data)

(continued)



































UC&C SaaS and Resold Services Revenue (8)

































Q1-13

Q2-13

Q3-13

Q4-13

FY 2013


Q1-14

Q2-14

Q3-14

Q4-14

FY 2014


Q1-15

Q2-15

Q3-15



















UC&C SaaS revenue, as reported

$  7,149

$  7,827

$  8,901

$  9,706

$33,583


$10,733

$11,996

$13,029

$16,977

$52,735


$18,746

$20,469

$ 22,188


Adjustment (8)

-

-

-

-

-


-

-

-

435

435


276

201

91


UC&C SaaS non-GAAP revenue

7,149

7,827

8,901

9,706

33,583


10,733

11,996

13,029

17,412

53,170


19,022

20,670

22,279



















Resold services revenue

$16,775

$16,650

$16,053

$15,618

$65,096


$16,118

$15,356

$15,234

$14,313

$61,021


$13,036

$12,495

$ 10,862


















(8)

Adjusted for the impact of purchase accounting related to deferred revenue. See footnote 2. 

 

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

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