Press Release Archive
Premiere Global Services Reports 2004 Results: Revenues $449.4M up 18%
Normalized Operating Income $71.4M up 48% Cash Flow from Operating Activities $82.7M up 38% $117.3M in Revenues and $0.17 Normalized Diluted EPS from Continuing Operations in Q4
Feb 17, 2005
ATLANTA, GA, February 17, 2005 - Premiere Global Services, Inc. (NYSE: PGI), a provider of innovative ASP-based communication technologies for business process automation, today announced results for the fourth quarter and fiscal year ended December 31, 2004. Revenues were $117.3 million for the quarter, a 16.0% increase from $101.1 million in the fourth quarter of 2003. Operating income grew 30.4% in the fourth quarter of 2004, totaling $19.2 million versus normalized operating income(a) of $14.7 million ($13.4 million GAAP operating income) in the comparable prior year period. Excluding a gain on the prepayment of a note receivable, normalized income from continuing operations(a) was $11.9 million and normalized diluted EPS from continuing operations(a) was $0.17 in the fourth quarter of 2004. Including this item, GAAP income from continuing operations was $17.1 million and GAAP diluted EPS from continuing operations was $0.24 in the fourth quarter.
Revenues in 2004 totaled $449.4 million, a 17.9% increase from $381.3 million in 2003. Operating income grew 48.3% in 2004, totaling $71.4 million versus normalized operating income(a) of $48.1 million ($37.2 million GAAP operating income) in the prior year. Normalized income from continuing operations(a) was $43.9 million and normalized diluted EPS from continuing operations(a) was $0.61 in 2004. Including these items, GAAP income from continuing operations was $40.7 million and GAAP diluted EPS from continuing operations was $0.58 in 2004.
"I am proud to report another great year for our Company," said Boland T. Jones, Founder, Chairman and CEO of Premiere Global Services, Inc. "We continue to grow our roster of enterprise customers by enabling them to automate components of their critical business processes through our communications platform."
004 Sales Accomplishments
Expanded by more than 13,000 the number of enterprise accounts using our communication technologies platform
Increased Conferencing & Collaboration (Premiere Conferencing) revenue by 28.6% to $202.8 million
Grew Data Communications (Xpedite) revenue by 10.3% to $246.9 million
Expanded International Conferencing & Collaboration revenue by 42.5%
Grew Web-based collaboration revenue by 100.8%
Increased transactional and new media data communications revenue by 25%
Expanded revenue from automated voice applications by 83.3%
2004 Financial Accomplishments
Generated $82.7 million of cash flow from operating activities, up 38.1% from 2003
Decreased cost of revenues (excluding depreciation) by 240 basis points through aggressive network cost management
Repurchased 1.5 million shares of common stock in the open market
Reduced net debt(a) by 47.8% to $42.3 million
Doubled shareholders equity to $266.7 million
Expanded bank line of credit borrowing limit to $120 million (recently increased to $180 million)
2004 Strategic Accomplishments
Opened access to our communication technologies platform via standard protocols
Successfully completed accretive tuck-in acquisitions
Realized significant return on investment in EasyLink debt
Transitioned to single brand as Premiere Global Services to better reflect business focus
Transferred common stock listing to the New York Stock Exchange
The following statements are based on Premiere Global's current expectations as of February 17, 2005. These statements are forward-looking statements 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 estimates revenues in the first quarter of 2005 will be in the range of $121 to $122 million and that diluted EPS will be approximately $0.17. The Company reiterates its 2005 financial outlook of revenues in the range of $490 to $500 million and diluted EPS in the range of $0.67 to $0.70, not including the impact of the new accounting standard requiring the expensing of stock options that becomes effective July 1, 2005. Included in this outlook is the expectation that the Company's largest customer will account for 2.0% to 3.0% of total revenues in 2005.
As previously announced, Premiere Global Services signed a definitive agreement to acquire the conferencing services division of Citizens Communications Company (NYSE: CZN). The Company anticipates the acquisition will be accretive to revenues and diluted EPS in 2005. The acquisition is expected to close late in the first quarter of 2005, and the Company anticipates raising its financial outlook at that time.
? (a) Indicates a non-GAAP financial measure. See table attached for reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures.
The Company will hold a conference call at 5:00 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) 289-0569 (US & Canada) or (913) 981-5542 (International). The conference call will be simultaneously broadcast over the Internet via SoundCast, a Premiere Global service, and can be found at http://www.pgi.com. 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, through midnight Eastern February 25 and may be accessed by calling (888) 203-1112 (US & Canada) or (719) 457-0820 (International). The confirmation code is 4898889. The Webcast of this call will be archived on the Company's Website at http://www.pgi.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; 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.