ATLANTA, GA, July 27, 2005 - Premiere Global Services, Inc.(NYSE: PGI), a global outsource provider of business communications services and business process solutions, today announced results for the second quarter ended June 30, 2005. Revenues were $132.1 million for the quarter, an increase of 18.4% from $111.6 million in the second quarter of 2004. Operating income grew 32.5% in the second quarter of 2005, totaling $23.3 million versus $17.6 million in the comparable prior year period. Income from continuing operations totaled $13.5 million and diluted EPS from continuing operations was $0.19 in the second quarter of 2005, versus breakeven income from continuing operations and diluted EPS from continuing operations of $0.01 in the second quarter of 2004.*
Revenues totaled $259.3 million for the six months ended June 30, 2005, a 19.6% increase from $216.9 million in the comparable prior year period. Operating income grew 37.3% in the first half of 2005, totaling $45.7 million versus $33.3 million in the first half of 2004. Income from continuing operations totaled $26.6 million and diluted EPS from continuing operations totaled $0.37 in the first half of 2005, versus $8.7 million in income from continuing operations and $0.14 in diluted EPS from continuing operations in the comparable prior year period.*
Second Quarter 2005 Accomplishments
+ Increased Conferencing & Collaboration revenue by 34.1% to $66.6 million
+ Grew Data Communications revenue by 5.7% to $65.5 million
+ Generated $32.3 million of cash flows from operating activities up 48.8%
+ Repurchased 502,500 shares of our common stock in the open market
"I am proud to report another quarter of solid performance," said Boland T. Jones, Founder, Chairman and CEO of Premiere Global Services, Inc. "Growth in our new business process solutions remains on track, as the value of these solutions begins to prove itself in the market, and I remain enthusiastic about our growth prospects. However, the dramatic negative change in foreign currency exchange rates combined with an acceleration in the decline of our legacy broadcast fax business in North America will negatively impact our revenues in the second half of the year resulting in the lowering of our forecast. In light of these recent developments, we are aggressively lowering costs in order to maintain profitability and cash flow generation in-line with our previous guidance."
The following statements are based on Premiere Global Services' current expectations as of July 27, 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 has lowered its revenue outlook for the remainder of the year, principally due to adverse movements in foreign currency exchange rates and also due to an acceleration in the decline of revenues generated by the Company's legacy broadcast fax business in North America. Premiere Global now anticipates revenues in 2005 will be in the range of $505 to $510 million, including projected revenue contribution of approximately $5 million from the pending acquisition of Netspoke, which the Company anticipates closing effective early August 2005. Premiere Global believes diluted EPS from continuing operations in 2005 will be in the range of $0.70 to $0.73, as previously guided. The Company plans to discuss its financial guidance on its earnings call this afternoon at 5:00 p.m. Eastern.
* Results in the second quarter and six months ended 2004 were negatively impacted by a charge of approximately $17.0 million associated with the conversion of the Company's subordinated convertible notes due 2008.
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) 289-0493 (US & Canada) or (913) 981-5510 (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 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 August 5, 2005, and can be accessed by calling (888) 203-1112 (US & Canada) or (719) 457-0820 (International). The confirmation code is 3805459. 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; 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.