ATLANTA, GA, July 28, 2004 - Ptek Holdings, Inc. (NASDAQ: PTEK), a leading provider of innovative business, data and group communications services, today announced results for the second quarter ended June 30, 2004. Revenues were $111.6 million for the quarter, a 17.6% increase from $94.9 million in the second quarter of 2003. Operating income grew 50.7% in the second quarter of 2004, totaling $17.6 million versus $11.6 million in the comparable prior year period. Excluding a previously announced $17.0 million non-recurring charge for the early retirement of the Company's convertible notes due 2008, normalized income from continuing operations was $11.0 million and normalized diluted EPS from continuing operations was $0.15 in the second quarter of 2004 (see table attached for calculation of these non-GAAP financial measures). Including the charge, GAAP income from continuing operations was break-even in the second quarter, and GAAP diluted EPS from continuing operations was $0.01.
Revenue at Premiere Conferencing grew 25.0% in the second quarter, totaling $49.7 million versus $39.7 million in the comparable prior year period. Revenue at Xpedite grew 12.2% during the second quarter of 2004, totaling $62.0 million versus $55.2 million in the second quarter of 2003.
"Providing innovative business communications solutions that are vital to business processes remains our priority," said Boland T. Jones, Founder, Chairman and CEO of Ptek Holdings, Inc.
Revenues for the six months ended June 30, 2004 were $216.9 million compared to $184.1 million in the six months ended June 30, 2003. Excluding the non-recurring charge for the early retirement of the Company's convertible notes due 2008, income from continuing operations was $20.5 million and diluted EPS from continuing operations was $0.29 for the first six months of 2004. Including the charge, GAAP income from continuing operations for the six months ended June, 30 2004 totaled $8.7 million and GAAP diluted EPS from continuing operations was $0.14.
Hosted 456 million minutes of group meetings during the second quarter
Delivered 839 million data communications during the quarter
Increased revenue from transactional and new media data communications by 49% during the quarter from the comparable prior year period
Increased revenue from Web-based conferencing services by 96% during the quarter from the second quarter of 2003
Grew international conferencing revenue by more than 45% during the quarter from the comparable prior year period
Lowered DSOs to 52 days in the quarter, down 2 days from March 31, 2004
Repurchased an additional 100,000 shares of Ptek common stock in the open market
Secured a new $120 million revolving credit facility with Bank of America, N. A.
Converted the entire $85 million principal amount of convertible notes due August of 2008
Repaid the remaining $15 million principal amount of convertible notes due 2004 at maturity o
The following statements are based on Ptek's current expectations as of July 28, 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 for 2004 will be in the range of $440 million to $450 million and diluted EPS from continuing operations for the year, excluding effects from the early redemption of the Company's convertible notes due 2008, will be in the range of $0.58 to $0.60. Average diluted shares outstanding in 2004 are estimated to be approximately 73 to 74 million, and the Company assumes an effective tax rate for the year between 38% and 39%.
Ptek Holdings announced today that it has confirmed Michael Havener as Chief Financial Officer. Mr. Havener, a Certified Public Accountant, was appointed CFO on an interim basis in March 2004 and has served in various financial capacities at the Company since 1997.
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 August 6 and may be accessed by calling (888) 203-1112 (US & Canada) or (719) 457-0820 (International). The confirmation code is 317511. 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.