Press Release Archive
Premiere Global Services Reports Third Quarter Results
$122.1M in Revenues; $0.16 Pro Forma Diluted EPS from Continuing Operations*; $0.10 GAAP Diluted EPS from Continuing Operations
Oct 19, 2006
ATLANTA, GA, October 19, 2006 - Premiere Global Services, Inc.(NYSE: PGI), a global outsource provider of business process solutions, today announced results for the third quarter ended September 30, 2006.
Revenues in the third quarter of 2006 were $122.1 million up from $120.9 million in the third quarter of 2005, marking the first period of year-over-year revenue growth since the second quarter of 2005. Excluding revenue contributions from the Company’s largest conferencing customer and its legacy broadcast fax business in both periods, revenues increased 11.0%.*
Conferencing & Collaboration revenue totaled $69.1 million compared to $62.1 million in the comparable prior year quarter. Excluding revenue contribution from the Company’s largest customer in both quarters, Conferencing & Collaboration revenue increased 15.5% in the third quarter of 2006 versus the third quarter of 2005.*
Data Communications revenue totaled $53.0 million compared to $58.9 million in the comparable prior year quarter. Revenue from legacy broadcast fax services declined $6.7 million dollars, totaling $21.4 million, or 17.5% of total revenues, as compared to $28.1 million, or 23.2% of total revenues, in the third quarter of 2005.
In the third quarter of 2006 in accordance with GAAP, operating income totaled $12.2 million, income from continuing operations totaled $6.7 million and diluted EPS from continuing operations totaled $0.10, compared to $17.1 million, $9.5 million and $0.13, respectively, in the third quarter of 2005. The 2006 third quarter results include the following items on a pre-tax basis: $0.9 million of restructuring costs, $2.7 million of equity-based compensation and $3.3 million of amortization.
Pro Forma Earnings
In the third quarter of 2006, excluding restructuring costs, equity based compensation and amortization charges, pro forma diluted EPS from continuing operations totaled $0.16. *
Third Quarter 2006 Accomplishments
+ Grew Web conferencing revenue 30% from the comparable prior year period
+ Grew revenue from IP fax services by 20% from the third quarter of 2005
+ Grew revenue from Marketing Automation services by 78% year-over-year
+ Repurchased 1.3 million shares of common stock in the open market
+ Acquired Enunciate Conferencing, Canada's third largest and fastest growing conferencing services provider according to Wainhouse Research
"We continue to make progress during this investment year as we transition to a unified, vertically-operated company. In fact, this quarter we reached an important inflection point, where total revenues grew even with the continued right-sizing of our legacy broadcast fax business," said Boland T. Jones, Founder, Chairman and CEO of Premiere Global Services, Inc. "Although our new revenue growth is currently less profitable than revenue from our legacy business, we believe our investments in automation and improved efficiencies will lead to better profitability in quarters to come. We anticipate earnings and cash flows will improve meaningfully in the fourth quarter. For the year, we anticipate revenues will be in the range we provided for 2006 and that earnings and cash flows will be slightly below our previous outlook.
We will continue to invest in automating our business, including the design and development of our new Web portal that will provide customers with easier access to all of our solutions while requiring less manual interaction on our part. In addition, we will continue to invest in completing the right-sizing of our legacy broadcast fax clientele. We believe these initiatives will help us continue to grow in 2007, and we look forward to providing our financial outlook for the year in December."
Nine Month Results
Revenues for the nine months ended September 30, 2006 were $369.4 million, down 2.9% compared to $380.3 million in the nine months ended September 30, 2005. In the first nine months of 2006 in accordance with GAAP, operating income totaled $40.0 million, income from continuing operations totaled $20.4 million and diluted EPS from continuing operations totaled $0.29, versus $62.8 million, $36.1 million and $0.50, respectively, in the first nine months of 2005. In the first nine months of 2006, excluding restructuring costs, equity based compensation, amortization and the elimination of a one-time state income tax adjustment, pro forma diluted EPS from continuing operations totaled $0.50. *
* To supplement the Company's consolidated financial statements presented in accordance with GAAP we have included the following non-GAAP measures of financial performance: normalized operating income, normalized income from continuing operations, normalized diluted EPS from continuing operations, pro forma operating income, pro forma income from continuing operations, pro forma diluted EPS from continuing operations and normalized cash provided by operating activities 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 business segment 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) 289-0494 (US & Canada) or (913) 981-5520 (International). The conference call will be simultaneously broadcast over the Internet via SoundCast ® , a Premiere Global service, and can be accessed at http://ir.premiereglobal.com. You may also follow this link for details on the Internet replay, podcast 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 through midnight Eastern October 27, 2006, and can be accessed by calling (888) 203-1112 (US & Canada) or (719) 457-0820 (International). The confirmation code is 4787616. The Webcast of this call will be archived on the Company’s Website at http://ir.premiereglobal.com .
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 Report on Form 10-Q for the quarter ended March 31, 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.