Press Release Archive

Premiere Global Services Reports Second Quarter 2009 Results: Revenues Total $154.7M, NON-GAAP Diluted EPS $0.24*

Jul 23, 2009

ATLANTA, July 23, 2009 - Premiere Global Services, Inc. (NYSE: PGI), a global provider of on-demand, applied communication technologies, today announced results for the second quarter ended June 30, 2009. Consolidated net revenues totaled $154.7 million in the second quarter of 2009 ($162.4 million on a constant currency basis*), compared to $161.6 million in the second quarter of 2008.
 
In the second quarter of 2009, operating income totaled $14.2 million, net income totaled $7.8 million and diluted EPS totaled $0.13, compared to $13.9 million, $8.5 million and $0.14, respectively, in the second quarter of 2008. Non-GAAP diluted EPS, which excludes the items set forth on the attached reconciliation of non-GAAP financial measures table, was $0.24* in the second quarter of 2009 ($0.27 on a constant currency basis*).

The Company estimates that changes in foreign currency exchange rates during the second quarter of 2009 negatively impacted its financial results as set forth in the table below and noted on the attached reconciliation of non-GAAP financial measures table:

Q2-09
(Constant currency*)
Impact of fluctuations in foreign currency exchange rates Q2-09
(Actual)
 


  (Unaudited, in thousands, except per share data)
Consolidated Net Revenues
$162,441
($7,750)
$154,691
Non-GAAP Operating Income*
$27,065
($2,135)
$24,930
Non-GAAP Net Income*
$15,959
($1,590)
$14,369
Non-GAAP Diluted EPS*
$0.27
($0.03)
$0.24

“While we continue to generate good organic growth in our conferencing solutions, our overall growth has been affected by the global recession and today’s higher level of unemployment and lower rate of business activity,” said Boland T. Jones, Founder, Chairman and CEO of Premiere Global Services, Inc. “We continue to sharpen our strategic focus, advance our technology innovation and refresh our go-to-market strategy, in order to build a foundation for accelerated growth and profitability. At the same time, we are working to optimize and streamline our expense structure in support of these efforts.

We continue to anticipate that we will grow revenues and profits this year on a constant currency basis. However, on a reported basis, assuming no significant changes in today’s foreign currency exchange rates, we believe revenues and profits will decline modestly in 2009 compared to 2008.”

Revenue Detail
Revenue from the Company’s PGiMeet conferencing and collaboration solutions grew 2.6% (7.1% on a constant currency basis*) to $116.7 million in the second quarter of 2009, compared to $113.7 million in the second quarter of 2008.

In the second quarter of 2009, net revenue in the Company’s reportable segments changed from the comparable prior year quarter as follows:

+ North America declined modestly (grew modestly on a constant currency basis*) to $96.8 million, versus $97.1 million;
+ Europe decreased 12.0% (increased 3.9% on a constant currency basis*) to $29.4 million, versus $33.4 million; and
+ Asia Pacific decreased 8.4% (3.2% on a constant currency basis*) to $28.5 million, versus $31.1 million.

Six Month Results
Consolidated net revenues for the six months ended June 30, 2009 were $310.6 million, compared to $314.4 million in the six months ended June 30, 2008. For the six months ended June 30, 2009, operating income totaled $32.2 million, net income totaled $18.0 million and diluted EPS totaled $0.30, compared to $33.5 million, $17.6 million and $0.28, respectively, for the six months ended June 30, 2008. Non-GAAP diluted EPS totaled $0.49* for the six months ended June 30, 2009, excluding the items set forth on the attached reconciliation of non-GAAP financial measures table.

* To supplement the Company’s consolidated financial statements presented in accordance with GAAP, we have included the following non-GAAP measures of financial performance: non-GAAP operating income, non-GAAP net income, non-GAAP diluted net income per share (EPS) and organic growth. The Company has also included these non-GAAP measures, as well as consolidated net revenues, segment net revenue and certain solutions revenue, on a constant currency basis. 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. Please see the table 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.

View financial data

Conference Call

The Company will hold a conference call at 5:00 p.m., Eastern Time, 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) 239-9838 (U.S. and Canada) or (913) 981-4903 (International).

The conference call will be simultaneously webcast. Webcast information can be found at www.pgi.com/investors. You may also follow this link for details on the web replay and for the text of the earnings release, including the financial and statistical information to be presented during the call.

A replay will be available following the call at 8:00 p.m., Eastern Time, tonight through midnight, Eastern Time, on July 31, 2009, and can be accessed by calling (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (International). The confirmation code is 2531242. The webcast of this call will be archived on the Company’s web site at www.pgi.com/investors.

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.
 
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 Inc.'s forward-looking statements, including, but not limited to, the following factors: competitive pressures, including pricing pressures; technological changes; 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; customer consolidations, bankruptcies or payment defaults; possible adverse results of pending or future litigation or infringement claims; federal or state legislative or regulatory changes, including government regulations applicable to traditional telecommunications service providers; general domestic and international economic, business or political conditions; a global economic slowdown or changes in the cost or availability of financing; and other factors described from time to time in our press releases, reports and other filings with the SEC, including but not limited to the "Risk Factors" sections of our Annual Report on Form 10-K for the year ended December 31, 2008. All forward-looking statements attributable to us or a person acting on our behalf are expressly qualified in their entirety by this cautionary statement.