ATLANTA, GA, July 26, 2007 - Premiere Global Services, Inc. (NYSE: PGI), a global provider of on-demand business process improvement solutions, today announced results for the second quarter ended June 30, 2007.
Consolidated revenues in the second quarter of 2007 increased approximately 10% to $138.0 million compared to $125.6 million in the second quarter of 2006. Consolidated revenues from the Premiere Global Communications Operating System’s six solution sets increased approximately 17.5%, excluding revenue from legacy broadcast fax in both periods.*
In the second quarter of 2007 in accordance with GAAP, operating income totaled $11.2 million, income from continuing operations totaled $5.8 million and diluted EPS from continuing operations totaled $0.09, compared to $13.8 million, $6.0 million and $0.09, respectively, in the second quarter of 2006. These results include the following items on a pre-tax basis: restructuring costs of $3.9 million, proxy-related costs of $2.0 million, equity-based compensation of $2.6 million and amortization of $3.6 million. (Please see reconciliation table attached.)
Pro Forma Earnings
In the second quarter of 2007, excluding restructuring costs, proxy-related costs, equity-based compensation and amortization, pro forma diluted EPS from continuing operations totaled $0.21.*
Cash provided by operating activities for the three months ended June 30, 2007 increased approximately 58% to $22.3 million compared to $14.1 million for the three months ended June 30, 2006.
“I believe our solid second quarter performance illustrates the increasing momentum we are generating in our business, as enterprises worldwide utilize our on-demand communications operating system,” said Boland T. Jones, Founder, Chairman and CEO of Premiere Global Services, Inc. “The second quarter saw an important milestone for our Company in the launch of our new Web portal, PGiConnect.com. The release of this early version of our site marks the beginning of our transition to an online Company – bringing our entire suite of solutions and years of domain expertise to the Web.
Looking ahead, we anticipate increasing our focus on this important initiative through further improvements to the portal, including additional content that serves to make our solutions tangible to current and prospective customers. Our goal is to continue to improve our customer experience, while at the same time driving increased Web channel sales and lowering our cost of service. We believe investments in our online strategy will generate meaningful returns in 2008 and beyond.”
Revenue from Conferencing solutions grew approximately 26% to $86.5 million in the second quarter of 2007 compared to $68.6 million in the comparable prior year quarter. Revenue from legacy broadcast fax services totaled $20.1 million in the second quarter of 2007, a decline of $5.2 million as compared to $25.3 million in the second quarter of 2006.
In the second quarter of 2007, revenue in the Company’s reportable segments was as follows:
- + North America grew approximately 9.8% to $88.1 million, versus $80.2 million in the second quarter of 2006;
- + Europe increased approximately 4.4% to $25.3 million, versus $24.3 million in the second quarter of 2006, and;
- + Asia Pacific grew approximately 16.9% to $24.6 million, versus $21.0 million in the second quarter of 2006.
Six Month Results
Revenues for the six months ended June 30, 2007 were $273.6 million, an increase of approximately 11% compared to $247.3 million in the six months ended June 30, 2006. Excluding a one-time tax benefit, restructuring costs, proxy-related costs, equity-based compensation and amortization, pro forma diluted EPS from continuing operations for the six months ended June 30, 2007 totaled $0.39.*
The following statements are based on Premiere Global Services’ current expectations as of July 26, 2007. These statements 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’s revised financial outlook for 2007 is as follows:
The Company now anticipates growth in consolidated revenues for the year will be above its prior forecast. The Company now projects consolidated revenues will increase approximately 10% in 2007 from 2006 totals.
As a result of expected operating efficiencies from the Company’s initiatives to increase automation, to streamline service delivery and to consolidate its operations, earnings are projected to grow at a faster rate than revenues in 2007, when excluding restructuring costs from both 2006 and 2007.
Cash Flows and Other
Excluding restructuring costs, the Company projects cash provided by operating activities from continuing operations will grow approximately 20% in 2007 from 2006 totals.
Capital expenditures are expected to be above the Company’s prior forecast due primarily to increased investment in capacity for the Company’s Conferencing Solutions and Desktop Fax Solutions, as well as increased investment in the re-engineering of the Company’s service and support organizations. The Company now projects capital expenditures will be in the range of 8% to 9% of consolidated revenues in 2007.
* To supplement the Company’s consolidated financial statements presented in accordance with GAAP, we have included the following non-GAAP measures of financial performance: pro forma operating income, pro forma income 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 consolidated and solution 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) 289-0533 (US & Canada) or (913) 981-5525 (International).
A replay will be available following the call at 8:00 p.m. Eastern through midnight Eastern August 3, 2007, and can be accessed by calling (888) 203-1112 (US & Canada) or (719) 457-0820 (International). The confirmation code is 4569401.
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" section of our Annual Report on Form 10-K for the year ended December 31, 2005 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2006 and September 30, 2006. All forward-looking statements attributable to us or a person acting on our behalf are expressly qualified in their entirety by this cautionary statement.