ATLANTA, GA, April 21, 2005 -Premiere Global Services, Inc. (NYSE: PGI), a global outsource provider of business communications services and business process solutions, today announced results for the first quarter ended March 31, 2005. Revenues were $127.3 million for the quarter, a 20.8% increase from $105.4 million in the first quarter of 2004. Operating income grew 42.7% in the first quarter of 2005, totaling $22.4 million versus $15.7 million in the comparable prior year period. Net income totaled $13.1 million in the quarter, a 50.4% increase from $8.7 million in the first quarter of 2004. Diluted EPS was $0.18 in the first quarter of 2005, up 41.0% compared to $0.13 in the first quarter of 2004.
“I am proud to report another quarter of solid operational and financial performance,” said Boland T. Jones, Founder, Chairman and CEO of Premiere Global Services, Inc. “The momentum in our current business is growing, and we are continuing to evolve into a business process-centric company providing higher value to our customers with our communication technologies-based applications.”
First Quarter 2005 Accomplishments
Increased Conferencing & Collaboration revenue by 37.1% to $62.0 million
Grew Data Communications revenue by 8.5% to $65.3 million
Grew Web-based collaboration revenue by 107.8%
Increased transactional and new media data communications revenue by 30.5%
Generated $20.3 million of cash flow from operating activities, up 126.4%
Repurchased 635,000 shares of our common stock in the open market
Expanded bank line of credit borrowing limit to $180 million
The following statements are based on Premiere Global Services’ current expectations as of April 21, 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.
Based on solid year-to-date performance and a delay in the expected transition of revenue from its largest customer, the Company has raised its 2005 financial outlook. Revenues in 2005 are expected to be in the range of $510 to $525 million and diluted EPS in 2005 is expected to be in the range of $0.70 to $0.73. The Company plans to provide additional financial guidance on its earnings call this afternoon at 5:00 Eastern.
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 April 29 and may be accessed by calling (888) 203-1112 (US & Canada) or (719) 457-0820 (International). The confirmation code is 1214561. The Webcast of this call will be archived on the Company’s Website at http://www.pgi.com.
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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.