ATLANTA, GA, April 29, 2003 - Ptek Holdings, Inc. (NASDAQ: PTEK), a leading provider of enhanced multimedia communications services, today announced results for the first quarter ended March 31, 2003
Financial Summary (unaudited)
(In thousands, except per share data)
Revenue from continuing operations was $89.2 million for the quarter compared to $83.3 million in the first quarter of 2002. Income from continuing operations increased to $4.8 million in the first quarter of 2003 from $2.1 million in the year ago period. Diluted EPS from continuing operations increased to $0.09 from $0.04 in the first quarter of 2002. EBITDA(a) was $18.5 million in the first quarter of 2003 versus $15.7 million in the first quarter of 2002.
Ptek's accomplishments in 2003 include:
Transactional and new services at Xpedite accounted for more than 33% of total operating unit revenue in the quarter.
Premiere Conferencing set new daily, weekly and monthly volume records during the quarter.
Expanded the suite of services at Premiere Conferencing with the addition of ReadyConference® EuroMeetingSM, VisionCast® Meeting, VisionCast seats (subscription-based pricing model) and the roll-out of VisionCast in Europe.
Repurchased 159,700 shares of the company's common stock during the quarter, increasing the total number of shares acquired since announcing the repurchase program in June of 2000 to 4,255,500.
In April, repurchased $30.0 million face value of the company's convertible notes at a discount to par.
"Obviously we are pleased with the first quarter results from both operating units," stated Boland T. Jones, Founder, Chairman and CEO of Ptek Holdings. "We are on plan to achieve our goals for the year in terms of revenue, net income and earnings per share. We continue to bring to our customers innovative new solutions to their communications issues, and that, I believe, will serve us well in the long term."
Operating Units' Performance
Premiere Conferencing (www.premconf.com)
Premiere Conferencing's first quarter 2003 revenue grew 9.8%, totaling $36.6 million versus $33.3 million in the year ago period.
Total conferencing minutes grew 47% during the quarter compared to the first quarter of 2002. Automated services accounted for 74% of total operating unit revenue, up from 68% during the first quarter of 2002. Web collaboration revenue increased 41% year-over-year, and the new AuditoriumSM service, introduced in the second quarter last year, continued to gain market acceptance with revenues up 98% sequentially from the fourth quarter of 2002.
Premiere Conferencing continued to expand its corporate customer base, adding more than 950 new domestic customers over the preceding quarter, including CIGNA Corporation, Danka Business Systems, Delta Air Lines, Lam Research Corporation and Purolator Courier. The operating unit also added numerous international customers, including QUALCOMM, Inc., ChevronTexaco Corp., and Air France.
Revenue at the Xpedite operating unit grew 5.4% during the first quarter of 2003, totaling $52.7 million versus $50.0 million in the year ago period.
Xpedite delivered 572 million messages during the quarter, an increase of 8% from the number of messages delivered in the first quarter of 2002. messageREACHSM volume for the first quarter of 2003 was up 188% over the first quarter of 2002, and voiceREACHSM volume increased 164% over the same period. Revenue from new services reached $8.3 million in the quarter.
During the quarter Xpedite added a significant number of new customer accounts, including Accenture Ltd., GlaxoSmithKline PLC and Bayer AG.
The following statements are based on Ptek's current expectations as of April 29, 2003. 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 Annual Report on Form 10-K for the fiscal year ended December 31, 2002.
Based on the Company's first quarter performance, Ptek remains comfortable with the financial guidance it previously provided in its earnings release dated February 25, 2003.
(a) EBITDA is defined as income from continuing operations before interest, taxes, depreciation and amortization. EBITDA is a non-GAAP financial measure. A reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure, operating cash flows, is attached.
The Company will hold a conference call to discuss this release at 8:30 a.m. EDT on April 30, 2003. To participate, please call the following numbers 5-10 minutes prior to the scheduled start time: 800-289-0529 (U.S. & Canada) or 913-981-5523 (International). The call will be simultaneously broadcast over the Internet via SoundCast®, a Premiere Conferencing service, and can be found at http://www.ptek.com/invest/invest.cfm. A replay of the conference call will be available immediately following the call through midnight May 9, and may be accessed by following the above link or by dialing 888-203-1112 (U.S. & Canada) or 719-457-0820 (International). The confirmation code is 341092.
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.