Press Release Archive
Premiere Global Services Reports Third Quarter 2008 Results: Revenues up 13% to $157.4M, pro forma diluted EPS up 18% to $0.26*
Oct 23, 2008
ATLANTA, GA, October 23, 2008 - Premiere Global Services, Inc. (NYSE: PGI), a global provider of on-demand, communication technologies-based business process improvement solutions, today announced results for the third quarter ended September 30, 2008.
Consolidated net revenues increased 12.6% to $157.4 million in the third quarter of 2008, compared to $139.8 million in the third quarter of 2007. In the third quarter of 2008, operating income totaled $20.0 million, net income totaled $10.8 million and diluted EPS totaled $0.18, compared to $17.4 million, $7.7 million and $0.13, respectively, in the third quarter of 2007. Pro forma diluted EPS totaled $0.26* in the third quarter of 2008, excluding the items set forth on the attached reconciliation of non-GAAP financial measures table.
The Company generates a significant portion of its consolidated revenues from its operations in international regions. Consequently, movements in foreign currency exchange rates affect its reported results. The Company estimates that changes in foreign currency exchanges rates during the third quarter of 2008 negatively impacted its consolidated revenues by approximately $3.0 million and its pro forma diluted EPS* by approximately $0.01, compared to the second quarter of 2008
“We are pleased with our continuing solid performance in spite of significant global headwinds and unprecedented movements in foreign currency exchange rates,” said Boland T. Jones, Founder, Chairman and CEO of Premiere Global Services, Inc. “We believe our accelerating organic growth rate illustrates the customer value of our PGi Communications Operating System, as companies increasingly look to our broad suite of platform-based solutions to help further their productivity and efficiency initiatives. Our strong balance sheet and significant cash flows provide us the flexibility to continue to invest in our business during these uncertain times.”
PGi Communications Operating System Revenue Detail
Conferencing & Collaboration Solutions remains the largest of the PGi Communications Operating System’s four solution sets. Conferencing & Collaboration Solutions revenue grew 25.4% to $113.0 million in the third quarter of 2008, versus $90.1 million in the third quarter of 2007.
In the third quarter of 2008, revenue in the Company’s reportable segments increased from the comparable prior year quarter as follows:
+ North America grew 8.0% to $96.9 million, versus $89.8 million;
+ Europe increased 26.3% to $30.9 million, versus $24.4 million; and
+ Asia Pacific grew 15.5% to $29.6 million, versus $25.6 million.
Nine Month Results
Revenues for the nine months ended September 30, 2008 were $471.8 million, an increase of 14.1% compared to $413.5 million in the nine months ended September 30, 2007. For the nine months ended September 30, 2008, operating income totaled $53.4 million, net income totaled $28.3 million and diluted EPS totaled $0.47, compared to $43.4 million, $22.5 million and $0.35, respectively, for the nine months ended September 30, 2007. Pro forma diluted EPS totaled $0.78* for the nine months ended September 30, 2008, excluding the items set forth on the attached reconciliation of non-GAAP financial measures table.
The following statements are based on Premiere Global’s current expectations as of October 23, 2008. These statements contain forward-looking statements and Company estimates, and actual results may differ materially. The Company assumes no duty to update any forward-looking statements made in this press release. A discussion concerning forward-looking statements is included at the end of this press release and in the Company’s filings with the Securities and Exchange Commission.
Foreign currency exchange rates have changed significantly in the interim period since the Company reaffirmed its 2008 financial outlook on September 15, 2008. The Company continues to anticipate operating results in-line with its previous outlook, excluding the effects of these recent exchange rate movements. However, based on current foreign currency exchange rates, the Company anticipates:
+ Consolidated revenues will increase approximately 12% in 2008 from 2007 totals; and
+ Diluted EPS will grow at least 20% in 2008 compared to 2007.
* To supplement the Company’s consolidated financial statements presented in accordance with GAAP, we have included the following non-GAAP measures of financial performance: pro forma operating income, pro forma net income and pro forma diluted EPS. 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
The Company will hold a conference call at 5:00 p.m. Eastern time 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: (866) 293-8707 (U.S. and Canada) or (913) 312-1294 (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 information to be presented during the call.
A replay will be available following the call at 8:00 p.m. Eastern time tonight through midnight Eastern January 23, 2009, and can be accessed by calling (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (International). The confirmation code is 7495871. 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.
Forward-looking and cautionary statements
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; 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 and our Quarterly Reports on Form 10-Q/A for the quarters ended March 31, 2008 and June 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.