Press Release Archive
PTEK Reports $115.2 Million in Revenues, $0.16 Normalized Diluted EPS from Continuing Operations
Cash Flow from Operations Up 50% to $24.7 Million
Oct 27, 2004
ATLANTA, GA, October 27, 2004 - Ptek Holdings, Inc. (NASDAQ: PTEK), a leading provider of innovative business, data and group communications services, today announced results for the third quarter ended September 30, 2004. Revenues were $115.2 million for the quarter, a 19.9% increase from $96.1 million in the third quarter of 2003.
Operating income grew 70.5% in the third quarter of 2004, totaling $18.9 million versus $11.1 million, excluding restructuring charges, in the comparable prior year period. Excluding a positive adjustment to income tax estimates and the benefit of the discounted early retirement of an acquisition payable, normalized income from continuing operations was $11.5 million and normalized diluted EPS from continuing operations was $0.16 in the third quarter of 2004 (see table attached for calculation of these non-GAAP financial measures). Including these positive adjustments, GAAP income from continuing operations was $14.9 million in the third quarter, and GAAP diluted EPS from continuing operations was $0.21.
Revenue at Premiere Conferencing grew 33.3% in the third quarter, totaling $53.8 million versus $40.3 million in the comparable prior year period. Revenue at Xpedite grew 10.1% during the third quarter of 2004, totaling $61.5 million versus $55.8 million in the third quarter of 2003.
"We are pleased with our Company's overall performance in the third quarter, an historically soft period due to seasonality," said Boland T. Jones, Founder, Chairman and CEO of Ptek Holdings, Inc. "Our sales engine, product innovation, profitability, cash generation and balance sheet all remain strong."
Revenues for the nine months ended September 30, 2004 were $332.1 million compared to $280.2 million in the nine months ended September 30, 2003. Excluding the non-recurring charge for the early retirement of the Company's convertible notes due 2008 realized in the second quarter of 2004 and the positive adjustment to income tax estimates and the benefit of the discounted early retirement of an acquisition payable realized in the third quarter of 2004, normalized income from continuing operations was $32.0 million and diluted EPS from continuing operations was $0.45 for the first nine months of 2004 (see table attached for calculation of these non-GAAP financial measures). Including these items, GAAP income from continuing operations for the nine months ended September, 30 2004 totaled $23.6 million and GAAP diluted EPS from continuing operations was $0.35.
Third Quarter 2004 Accomplishments
Hosted 497 million minutes of group meetings
Delivered 852 million data communications
Increased revenue from transactional and new media data communications by 20.5% from the comparable prior year period
Increased revenue from Web-based conferencing services by 125% from the third quarter of 2003
Grew international conferencing revenue by 33% from the comparable prior year period
Generated $24.7 million of cash flow from operating activities, an increase of 50% from the third quarter of 2003
Repurchased 1,000,000 shares of Ptek common stock in the open market
The following statements are based on Ptek's current expectations as of October 27, 2004. 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 and income from continuing operations will increase in the fourth quarter from the third quarter of 2004, excluding the positive adjustment to income tax estimates and the benefit of the discounted early retirement of an acquisition payable realized in the third quarter.
The Company estimates revenues in 2005 will be in the range of $490 to $500 million and diluted EPS will be in the range of $0.67 to $0.70. The Company expects that its largest customer will account for 2.0% to 3.0% of total revenues in 2005.
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 below 5-10 minutes prior to the scheduled start time. (800) 810-0924 (US & Canada) or (913) 981-4900 (International). The conference call will be simultaneously broadcast over the Internet via SoundCast®, a Premiere Conferencing service, and can be found at http://www.ptek.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 November 5 and may be accessed by calling (888) 203-1112 (US & Canada) or (719) 457-0820 (International). The confirmation code is 865655. The Webcast of this call will be archived on the Company's Website at www.ptek.com.
About Ptek Holdings, Inc.
Ptek Holdings, Inc. is a leading provider of innovative business, data and group communications services for global enterprises. Companies use our audio and data conferencing solutions to conduct group meetings and presentations over the phone or Web. We also enable our customers to process and deliver large quantities of individualized, business critical information, such as electronic statements and invoices, financial transaction and travel confirmations, and drug prescriptions, via our global ASP platform. Ptek serves companies in nearly every business sector, including healthcare, technology, publishing, financial services, travel and hospitality. Our services are marketed under the Premiere Conferencing and Xpedite® brand names.
Ptek Holdings' corporate headquarters is located at 3399 Peachtree Road NE, Suite 700, Atlanta, GA 30326. Additional information can be found at www.ptek.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 Ptek's forward-looking statements, including, but not limited to, the following factors: technological change; the development of alternatives to our services; our ability to manage our growth; integration of acquired companies; possible adverse effects on our financial condition if we are unable to retain IBM as a customer at the levels currently forecasted; possible adverse results of pending or future litigation or infringement claims; service interruptions; competitive pressures, including pricing pressures; general domestic and international economic, business or political conditions; legislative or regulatory changes; increased financial leverage; our dependence on our subsidiaries for cash flow; 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, 2003. All forward-looking statements attributable to us or a person acting on our behalf are expressly qualified in their entirety by this cautionary statement.