Press Release Archive
Premiere Global Services Reports Second Quarter 2008 Results: Revenues up 17% to $161.6M, Pro Forma Diluted EPS up 29% to $0.27*
Company Raises Financial Outlook for 2008
Jul 21, 2008
ATLANTA, GA , JULY 21, 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 second quarter ended June 30, 2008.
Consolidated net revenues increased 17.1% to $161.6 million in the second quarter of 2008, compared to $138.0 million in the second quarter of 2007. In the second quarter of 2008, operating income totaled $13.9 million, net income totaled $5.8 million and diluted EPS totaled $0.10, compared to $11.2 million, $5.8 million and $0.09, respectively, in the second quarter of 2007. Pro forma diluted EPS totaled $0.27* in the second quarter of 2008, excluding the items set forth on the attached reconciliation of non-GAAP financial measures table.
"We are very pleased with our second quarter performance, as we believe we made meaningful progress on all fronts – strategic, operational and financial," said Boland T. Jones, Founder, Chairman and CEO of Premiere Global Services, Inc. "In today’s competitive global economy, we believe companies are more focused than ever on improving their business processes to drive their financial results and to remain competitive. With our robust communication technologies platform, our expanding suite of PGi Communications Operating System solutions and applications, and our global reach and scale, we believe we are in a great position to continue to capitalize on this macro trend."
PGi Communications Operating System Revenue Detail
Conferencing & Collaboration Solutions remains the largest of the PGi Communications Operating System’s five solution sets. Conferencing & Collaboration Solutions revenue grew 31.4% to $113.7 million in the second quarter of 2008, versus $86.5 million in the second quarter of 2007.
In the second quarter of 2008, revenue in the Company’s reportable segments increased from the comparable prior year quarter as follows:
+ North America grew 10.2% to $97.1 million, versus $88.1 million;
+ Europe increased 31.5% to $33.3 million, versus $25.3 million and;
+ Asia Pacific grew 26.6% to $31.1 million, versus $24.6 million.
Six Month Results
Revenues for the six months ended June 30, 2008 were $314.4 million, an increase of approximately 14.9% compared to $273.6 million in the six months ended June 30, 2007. For the six months ended June 30, 2008, operating income totaled $33.5 million, net income totaled $17.8 million and diluted EPS totaled $0.29, compared to $26.0 million, $14.8 million and $0.22, respectively, for the six months ended June 30, 2007. Pro forma diluted EPS from continuing operations totaled $0.52* for the six months ended June 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 Services’ current expectations as of July 21, 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.
The Company anticipates revenue growth in 2008 will be above its prior forecast. The Company now projects consolidated revenues will increase greater than 13% in 2008 from 2007 totals. Diluted EPS is projected to grow at least 20% in 2008 compared to 2007. Capital expenditures are expected to decline as a percentage of revenues in 2008 from 2007 levels.
* 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 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) 221-9584 (US & Canada) or (913) 312-1490 (International). The call will be simultaneously broadcast over the Internet and can be accessed at PremiereGlobal.com/IR. You may also follow this link for details on the Internet replay and for the text of the earnings release, including the financial and statistical information to be presented in the call.
A replay will be available following the call at 8:00 p.m. Eastern tonight through 8:00 p.m. Eastern August 1, 2008, and can be accessed by calling (888) 203-1112 (US & Canada) or (719) 457-0820 (International). The confirmation code is 9595848. The Webcast of this call will be archived on the Company’s Website at PremiereGlobal.com/IR.
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' 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; 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 for the year ended December 31, 2007 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 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.