Press Release Archive
Premiere Global Services Reports First Quarter Results
$121.7M in Revenues and $0.12 Normalized Diluted EPS from Continuing Operations
Apr 27, 2006
ATLANTA, GA, April 27, 2006 - Premiere Global Services, Inc. (NYSE: PGI), a global outsource provider of business process solutions, today announced results for the first quarter ended March 31, 2006. Revenues in the first quarter of 2006 were $121.7 million, down 4.4% compared to $127.3 million in the first quarter of 2005. Excluding pre-tax restructuring costs of $1.1 million, normalized operating income totaled $15.0 million, normalized income from continuing operations totaled $8.3 million and normalized diluted EPS from continuing operations was $0.12 in the first quarter of 2006, versus $22.8 million, $13.4 million and $0.19, respectively, in the first quarter of 2005.* In the first quarter of 2006 in accordance with GAAP, operating income totaled $14.0 million, income from continuing operations totaled $7.7 million and diluted EPS from continuing operations totaled $0.11, versus $22.4 million, $13.1 million and $0.18, respectively, in the first quarter of 2005.
First Quarter 2006 Revenue Detail
Conferencing & Collaboration revenue totaled $66.8 million, up 7.7% from $62.0 million in the comparable prior year quarter. As expected, revenue from the Company’s largest customer declined by $8.7 million, totaling $2.7 million in the first quarter of 2006 versus $11.5 million in the first quarter of 2005. Excluding revenue contribution from this customer in both quarters, Conferencing & Collaboration revenue increased 26.7% in the first quarter of 2006 versus the first quarter of 2005.*
Data Communications revenue totaled $55.0 million, down 15.8% from $65.3 million in the comparable prior year quarter. Revenue from legacy broadcast fax services declined $7.5 million dollars, totaling $24.7 million versus $32.2 million in the first quarter of 2005.
Year-to-Date 2006 Accomplishments
+ Generated record monthly Conferencing Solutions volumes
+ Augmented Marketing Automation Solutions with the acquisition of Accucast, Inc., whose intelligence-based platform makes it a recognized industry leader in on-line marketing
+ Within Document Solutions, DocuManager, an electronic fax solution, continued to generate new users, recording 75% growth in the first quarter compared to the first quarter of 2005
+ Continued to improve the communication technologies platform with enhancements to SMS delivery capabilities for Alerts & Notifications Solutions
+ Formally launched PremiereAnywhere solution suite targeted at increasing the productivity of the growing number of mobile professionals
+ Generated $18.9 million in normalized cash flows from operating activities from continuing operations, which excludes payments for restructuring costs and payments for legal settlements and related expenses *
+ Expanded bank revolving line of credit limit to $300 million from $180 million with improved borrowing economics and covenants, and an extended term
“We are pleased with our revenue performance during the quarter, especially the continued strength in our Conferencing & Collaboration business, which once again outperformed the industry in a very competitive environment,” said Boland T. Jones, Founder, Chairman and CEO of Premiere Global Services, Inc. “Results in our Data Communications business continue to be overshadowed by its legacy services, but we believe it has the potential to be a great business, and we are taking the necessary steps to generate performance similar to that of our Conferencing & Collaboration business.
We remain convinced that Premiere Global Services is uniquely positioned in the marketplace with the sole focus of innovating communication technologies that help businesses simplify their daily processes, making them more competitive, more efficient and more profitable. We are making meaningful progress toward the key business objectives we established to help move our Company from good to great.”
The following statements and projected non-GAAP financial table are based on Premiere Global Services’ current expectations as of April 27, 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 outlook that revenues for 2006 are anticipated to be at the low end of the range of $480 to $500 million. The Company anticipates normalized diluted EPS from continuing operations, which excludes restructuring costs, in 2006 to be in the range of $0.50 to $0.58. 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: normalized operating income, normalized income from continuing operations, normalized diluted EPS from continuing operations, normalized cash provided by operating activities 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 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 May 5, 2006, and can be accessed by calling (888) 203-1112 (US & Canada) or (719) 457-0820 (International). The confirmation code is 1736499. 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.