Press Release Archive
Premiere Global Services Reports Second Quarter Results
$125.6M in Revenues; $0.13 Normalized Diluted EPS from Continuing Operations*; $0.18 Pro Forma Diluted EPS from Continuing Operations*
Jul 26, 2006
ATLANTA, GA, July 26, 2006 - Premiere Global Services, Inc. (NYSE: PGI), a global outsource provider of business process solutions, today announced results for the second quarter of 2006.
Revenues in the second quarter of 2006 were $125.6 million compared to $132.1 million in 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 7.4%.*
Conferencing & Collaboration revenue totaled $68.6 million compared to $66.6 million in the comparable prior year quarter. Excluding revenue contribution from the Company’s largest customer in both quarters, Conferencing & Collaboration revenue increased 16.1% in the second quarter of 2006 versus the second quarter of 2005. *
Data Communications revenue totaled $57.0 million compared to $65.5 million in the comparable prior year quarter. Revenue from legacy broadcast fax services declined $6.1 million dollars, totaling $25.3 million versus $31.4 million in the second quarter of 2005.
Excluding restructuring costs, normalized operating income totaled $15.9 million, and excluding restructuring costs and the elimination of a one-time state income tax adjustment, normalized income from continuing operations totaled $8.8 million and normalized diluted EPS from continuing operations was $0.13 in the second quarter of 2006, versus $23.4 million, $13.6 million and $0.19, respectively, in the second quarter of 2005. *
Pro Forma Earnings
In the second quarter of 2006, excluding restructuring costs, the elimination of a one-time state income tax adjustment, equity based compensation and amortization charges, pro forma diluted EPS from continuing operations totaled $0.18. *
In the second quarter of 2006 in accordance with GAAP, operating income totaled $13.8 million, income from continuing operations totaled $6.0 million and diluted EPS from continuing operations totaled $0.09, compared to $23.3 million, $13.5 million and $0.19, respectively, in the second quarter of 2005.
Second Quarter 2006 Accomplishments
+ Generated record daily and quarterly conferencing volumes
+ Grew revenue from DocuManager IP fax services by greater than 36% from the second quarter of 2005
+ Grew revenue from Marketing Automation services by greater than 120% year-over-year
+ Repurchased nearly 2.4 million shares of common stock in the open market
+ Secured new Board-authorized share repurchase plan for up to 7 million shares, approximately 10% of total shares outstanding
+ Expanded bank revolving line of credit limit to $300 million from $180 million
"We are pleased with our revenue performance during the second quarter and believe we are well on our way to delivering the kind of steady, quarterly revenue growth we are committed to in 2007 and beyond," said Boland T. Jones, Founder, Chairman and CEO of Premiere Global Services, Inc. "We are continuing to evolve Premiere Global Services to a uniform, vertically-operated Company with a sole focus on innovating communication technologies to help our global enterprise customers simplify and improve their business processes through the exchange of critical daily information and ideas. We believe that our unified corporate structure will help us better penetrate our existing customer base, while giving us a clear competitive edge in acquiring new accounts. It also establishes the collaborative framework necessary to take our Company from good to great."
Six Month Results
Revenues for the six months ended June 30, 2006 were $247.3 million, down 4.6% compared to $259.3 million in the six months ended June 30, 2005. Excluding restructuring costs, normalized operating income totaled $30.9 million, and excluding restructuring costs and the elimination of a one-time state income tax adjustment, normalized income from continuing operations totaled $17.1 million and normalized diluted EPS from continuing operations was $0.24 in the first half of 2006, versus $46.2 million, $26.9 million and $0.37, respectively, in the first half of 2005. * In the first half of 2006, excluding restructuring costs, the elimination of a one-time state income tax adjustment, equity based compensation and amortization charges, pro forma diluted EPS from continuing operations totaled $0.34. * In the first six months of 2006 in accordance with GAAP, operating income totaled $27.8 million, income from continuing operations totaled $13.7 million and diluted EPS from continuing operations totaled $0.19, versus $45.7 million, $26.6 million and $0.37, respectively, in the first six months of 2005.
The following statements and projected non-GAAP financial table are based on Premiere Global Services’ current expectations as of July 26, 2006. These statements and non-GAAP financial table 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 confirms its financial outlook for 2006 revenues and projected normalized and pro forma diluted EPS from continuing operations as previously provided in its first quarter earnings release dated April 27, 2006. See the reconciliation of projected non-GAAP financial measures as set forth below:
* To supplement the Company’s consolidated financial statements presented in accordance with GAAP we have included the following non-GAAP measures of financial performance in this press release: normalized operating income, normalized income from continuing operations, normalized diluted EPS 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) 565-5442 (US & Canada) or (913) 312-1298 (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 August 4, 2006, and can be accessed by calling (888) 203-1112 (US & Canada) or (719) 457-0820 (International). The confirmation code is 6938514. 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 Affecting Future Performance” section of our Annual Report on Form 10-K for the year ended December 31, 2004. All forward-looking statements attributable to us or a person acting on our behalf are expressly qualified in their entirety by this cautionary statement.