Press Release Archive
Premiere Global Reports first Quarter Results: Revenues Up 11% TO $135.6M, $0.19 Pro Forma Diluted EPS from Continuing Operations*
Board Appoints Steve Jones, Dean of Kenan-Flagler Business School of the University of North Carolina at Chapel Hill, as New Independent Director
Apr 19, 2007
ATLANTA, GA, April 19, 2007 - Premiere Global Services, Inc. (NYSE: PGI), a global provider of on-demand communication technologies-based business process improvement solutions, today announced results for the first quarter ended March 31, 2007.
Consolidated revenues in the first quarter of 2007 increased 11.4% to $135.6 million compared to $121.7 million in the first quarter of 2006. Aggregate revenues from the Premiere Global Communications Operating System six solution sets increased 19.6%, excluding revenue from legacy broadcast fax in both periods.*
In the first quarter of 2007 in accordance with GAAP, operating income totaled $14.7 million, income from continuing operations totaled $8.9 million and diluted EPS from continuing operations totaled $0.13, compared to $14.0 million, $7.7 million and $0.11, respectively, in the first quarter of 2006. These results include the reversal of restructuring costs of $0.1 million and a one-time tax benefit of $0.6 million. The results also include the following items on a pre-tax basis: proxy-related costs of $0.9 million, $2.8 million of equity-based compensation and $3.6 million of amortization.
Pro Forma Earnings
In the first quarter of 2007, excluding a one-time tax benefit, restructuring costs, proxy-related costs, equity-based compensation and amortization, pro forma diluted EPS from continuing operations totaled $0.19.*
“I believe our solid first quarter performance illustrates the increasing value PGI brings to the thousands of global enterprises that use our on-demand communication technologies to automate, simplify and improve their critical, daily business processes,” said Boland T. Jones, Founder, Chairman and CEO of Premiere Global Services, Inc. “PGI is defining and leading the category of Constituent Relationship Management by recognizing and fulfilling companies’ universal need to enhance relationships with their customers, employees, vendors, trade partners, investors and other important stakeholders.”
Revenue from Conferencing solutions grew 27.0% to $84.8 million in the first quarter of 2007 compared to $66.8 million in the comparable prior year quarter. Revenue from legacy broadcast fax services totaled $19.6 million in the first quarter of 2007, a decline of $5.1 million as compared to $24.7 million in the first quarter of 2006.
In the first quarter of 2007, revenue in the Company’s reportable segments was as follows:
- + North America increased 10.7% to $88.0 million, versus $79.5 million in the first quarter of 2006;
- + Europe increased 8.2% to $24.9 million, versus $23.0 million in the first quarter of 2006; and
- + Asia Pacific grew 18.2% to $22.7 million, versus $19.2 million in the first quarter of 2006.
The Company also announced today that it has appointed W. Steven Jones, Dean of Kenan-Flagler Business School of the University of North Carolina at Chapel Hill, as a Class I director to fill a vacancy on the Board. Prior to becoming Dean of UNC Kenan-Flagler, Mr. Jones served as Chief Executive Officer and Managing Director of Suncorp Metway Ltd., a banking, insurance and funds management company in Brisbane, Queensland, and one of the 25 largest companies in Australia. He has also served as Managing Director and Chief Executive Officer of ANZ Banking Group, N.Z., Ltd., one of Australia’s four largest banks, and was a consultant with McKinsey & Company in Atlanta and Melbourne. Mr. Jones currently serves as a director of Bank of America, N.A. and of Progress Energy Inc.
The appointment of Mr. Jones brings the total number of independent directors on the Company’s Board of Directors to six out of seven total members. Steve Jones is not related to the Company’s Chairman and CEO, Boland Jones.
“We are delighted to have Steve join our Board, as he brings with him a wealth of business experience from his years of running international companies and one of the finest business schools in the country,” said Boland Jones. “We will look to Steve for advice and counsel in the areas of international expansion, sales and marketing strategies, and for key contacts throughout the business community, as we seek to grow PGI’s global profile.”
The following statements are based on Premiere Global Services’ current expectations as of April 19, 2007. 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’s financial outlook for 2007 is as follows:
The Company anticipates growth in consolidated revenues for the year will be at the high-end of its previous forecast. The Company had previously projected consolidated revenues to increase 5% to 7% in 2007 from 2006 totals.
As a result of expected operating efficiencies from the Company’s initiatives to increase automation, to streamline service delivery and to consolidate its operations, earnings are projected to grow at a faster rate than revenues in 2007.
Cash Flows and Other
The Company anticipates incurring restructuring costs in the range of $4.0 to $4.5 million during the second quarter of 2007, primarily related to the re-engineering of its global operations. Excluding anticipated restructuring costs, the Company projects cash flows provided by operating activities from continuing operations will grow approximately 20% in 2007 from 2006 totals.
Capital expenditures are expected to be in the range of 6.5% to 7.0% of revenues due to increased investment in automation initiatives, including the development of PGI’s new Web portal designed to bring the Company’s products and services online. The Company anticipates its effective tax rate will be in the range of 34% to 35% in 2007, excluding the one-time tax benefit in the first quarter of 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 income from continuing operations and pro forma diluted EPS from continuing operations. 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. In addition, we present certain consolidated and solution revenue growth statistics that are derived from non-GAAP financial measures. 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.
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: (800) 289-0529 (US & Canada) or (913) 981-5523 (International).
A replay will be available following the call at 8:00 p.m. Eastern through midnight Eastern April 27, 2007, and can be accessed by calling (888) 203-1112 (US & Canada) or (719) 457-0820 (International). The confirmation code is 8787467.
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; 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 the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2005 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2006 and September 30, 2006. All forward-looking statements attributable to us or a person acting on our behalf are expressly qualified in their entirety by this cautionary statement.