Press Release Archive

Premiere Global Services Reports Fourth Quarter and 2008 Results: Fourth Quarter Revenues Totaled $152.4M, Non-GAAP Diluted EPS $0.25*

Company to Appoint David Trine, Former CFO of ChoicePoint Inc., as Chief Financial Officer

Feb 19, 2009

ATLANTA, February 19, 2009 - Premiere Global Services, Inc. (NYSE: PGI) announces results for the fourth quarter and fiscal year ended December 31, 2008.
 
Premiere Global Services, Inc. (NYSE: PGI), a global provider of on-demand, applied communication technologies, today announced results for the fourth quarter and fiscal year ended December 31, 2008. Consolidated net revenues increased 4.2% (8.1% on a constant currency basis*) to $152.4 million in the fourth quarter of 2008, compared to $146.2 million in the fourth quarter of 2007. In the fourth quarter of 2008, operating income totaled $16.1 million, net income totaled $7.8 million and diluted EPS totaled $0.13, compared to $18.2 million, $8.0 million and $0.13, respectively, in the fourth quarter of 2007. Non-GAAP diluted EPS totaled $0.25* ($0.27 on a constant currency basis*) in the fourth quarter of 2008, excluding the items set forth on the attached reconciliation of non-GAAP financial measures table. The Company estimates that changes in foreign currency exchange rates during the fourth quarter of 2008 negatively impacted its financial results as set forth in the table below and noted on the attached reconciliation of non-GAAP financial measures table:

Q4-08
(Constant currency*)
Impact of fluctuations in foreign currency exchange rates Q4-08
(Actual)



(in thousands, except per share data)
Consolidated Net Revenues
$158,100
($5,701)
$152,399
Non-GAAP Operating Income*
$27,592
($1,119)
$26,473
Non-GAAP Net Income*
$16,151
($1,283)
$14,868
Non-GAAP Diluted EPS from Net Income*
$0.27
($0.02)
$0.25

The Company believes that its global footprint provides a significant competitive differentiator, and its international regions continue to be the Company's fastest growing reportable segments. In the fourth quarter of 2008, nearly 40% of the Company's consolidated net revenues were denominated in currencies other than U.S. dollars.

Fiscal Year 2008 Results

Consolidated net revenues in 2008 increased 11.5% (10.0% on a constant currency basis*) to $624.2 million, versus $559.7 million in 2007. In 2008, operating income totaled $69.5 million, net income totaled $36.1 million and diluted EPS totaled $0.60, compared to $61.5 million, $30.4 million and $0.48, respectively, in 2007. Non-GAAP diluted EPS totaled $1.03* in 2008, excluding the items noted on the attached reconciliation of non-GAAP financial measures table.

“We are pleased with our 2008 performance, as we continued to grow our revenues and improve our profitability in spite of a worsening economy,” said Boland T. Jones, Founder, Chairman and CEO of Premiere Global Services, Inc. “We believe our results illustrate the value our PGi Communications Operating System solutions deliver to companies around the world as they look to drive efficiencies in their businesses in order to remain competitive.

We also believe the strategic progress we have made over the last few years to position PGi as a leader in on-demand, applied communication technologies, as well as our strong balance sheet and cash flows provide us the flexibility to continue to invest in and grow our business. Based on our continuing momentum and assuming no significant changes in today's foreign currency exchange rates, we continue to believe that we will grow both our revenues and profitability modestly in 2009.”

Revenue Detail

PGiMeet Solutions (formerly known as Conferencing & Collaboration Solutions) remains the largest of the PGi Communications Operating System's four solution sets. PGiMeet Solutions revenue grew 14.8% (19.0% on a constant currency basis*) to $111.6 million in the fourth quarter of 2008, compared to $97.2 millionin the fourth quarter of 2007.

In the fourth quarter of 2008, net revenue in the Company's reportable segments changed from the comparable prior year quarter as follows:

+ North America grew 5.3% (6.5% on a constant currency basis*) to $95.7 million, versus $90.9 million;
+ Europe decreased 0.7% (increased 12.3% on a constant currency basis*) to $28.4 million, versus $28.6 million; and
+ Asia Pacific grew 5.7% (9.1% on a constant currency basis*) to $28.3 million, versus $26.8 million.

View financial data

CFO Appointment
 

The Company also announced that it has appointed David E. Trine as Executive Vice President, Finance and that Mr. Trine will assume the role of Chief Financial Officer and Principal Accounting Officer following the filing of the Company's annual report on Form 10-K for the year ended December 31, 2008. The Company's current Chief Financial Officer and Principal Accounting Officer, Michael Havener, will continue to serve in that capacity through the filing of the annual report on Form 10-K and then will stay on with the Company in the role of Senior Vice President, Corporate Finance.

Prior to joining Premiere Global, Mr. Trine served most recently as Chief Financial Officer of the Risk & Information Analytics Group of LexisNexis whose parent, Reed Elsevier, acquired ChoicePoint Inc. in September 2008. Prior to that time, he served as Senior Vice President, Chief Financial Officer and Principal Accounting Officer of ChoicePoint since October 2005.

“Mike has been a key member of our finance organization for more than a decade,” said Mr. Jones. “Under his leadership, we have made great strides in establishing transparency in our financial planning and reporting, and we look forward to his continuing contributions. We welcome David to the PGi team, and we look to benefit from his many years of experience and expertise in running a much larger finance and accounting organization, as we continue to execute on our growth plans.”

* 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, non-GAAP diluted EPS and organic growth. The Company has also included these non-GAAP measures, as well as consolidated net revenues, segment net revenue and certain solutions revenue, 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.

Conference Call

The Company will hold a conference call at 5:00 p.m. Eastern this afternoon 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) 245-1007 (U.S. and Canada) or (913) 312-1484 (International). The conference call will be simultaneously webcast. Webcast information can be found at www.pgi.com/investors. You may also follow this link for details on the web replay and for the text of the earnings release, including the financial and statistical informationto be presented during the call.

A replay will be available following the call at 8:00 p.m. Eastern tonight through midnight Eastern February 27, 2009, and can be accessed by calling (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (International). The confirmation code is 5413842. The webcast of this call will be archived on the Company's web site at www.pgi.com/investors.

About Premiere Global Services, Inc.
Premiere Global Services, Inc., formerly Ptek Holdings, Inc., is a leading global provider of innovative business communications and data services. Customers use our ASP platform to conduct traditional and VoIP-based collaboration sessions and to process and deliver large quantities of individualized, business critical information. Premiere Global offers outsourced document delivery, data capture, alerts/notifications and campaign management solutions that automate customers' business processes and improve efficiency levels enterprise-wide. We also offer a full suite of conferencing solutions, including automated, operator-assisted and Web collaboration services that enable customers to communicate real-time via our advanced, open standards global conferencing platform.
 
Premiere Global serves more than 46,000 corporate accounts in nearly every business sector, throughout 18 countries worldwide. Our corporate headquarters is located at 3399 Peachtree Road NE, Suite 700, Atlanta, GA 30326. Additional information can be found at 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 change; the development of alternatives to our services; market acceptance of our new services and enhancements; integration of acquired companies; service interruptions; increased financial leverage; our dependence on our subsidiaries for cash flow; continued weakness in our legacy broadcast fax business; foreign currency exchange rates; customer consolidations, bankruptcies or payment defaults; possible adverse results of pending or future litigation or infringement claims; federal or state legislative or regulatory changes, including government regulations applicable to traditional telecommunications service providers; general domestic and international economic, business or political conditions; a global economic slowdown or changes in the cost or availability of financing; and other factors described from time to time in our press releases, reports and other filings with the SEC, including but not limited to the "Risk Factors" sections of our Annual Report on Form 10-K/A for the year ended December 31, 2007, our Quarterly Reports on Form 10-Q/A for the quarters ended March 31, 2008 and June 30, 2008 and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2008. All forward-looking statements attributable to us or a person acting on our behalf are expressly qualified in their entirety by this cautionary statement.