ATLANTA, July 21, 2011 - Premiere Global Services, Inc. (NYSE: PGI), a global leader in virtual meetings, today announced results for the second quarter ended June 30, 2011.
In the second quarter of 2011, net revenues increased 7.3% to $119.0 million, compared to $110.9 million in the second quarter of 2010. Diluted EPS from continuing operations was $0.10 and non-GAAP diluted EPS from continuing operations was $0.15* in the second quarter of 2011, compared to diluted EPS from continuing operations of $0.07 and non-GAAP diluted EPS from continuing operations of $0.15* in the second quarter of 2010. Results for 2010 are reclassified to reflect the PGiSend business as discontinued operations, as it was sold in October 2010.
“We are pleased with the overall performance of our global business and the continuing momentum in our new products, iMeet® and GlobalMeet®,” said Boland T. Jones, PGi founder, chairman and CEO, who is leading the company’s next-generation product innovation. “Our sales pipelines continue to grow, and our outlook for the rest of the year remains strong.”
Six Month Results
In the first six months of 2011, net revenues increased 5.6% to $235.9 million, compared to $223.4 million in the first six months of 2010. Diluted EPS from continuing operations was $0.15 and non-GAAP diluted EPS from continuing operations was $0.26* in the first six months of 2011, compared to diluted EPS from continuing operations of $0.15 and non-GAAP diluted EPS from continuing operations of $0.29* in the first six months of 2010.
PGi also announced that its Board of Directors approved the repurchase of up to 5.0 million shares of the company's common stock, or approximately 10% of total shares currently outstanding, under a new stock repurchase program. PGi repurchased 1.0 million shares of common stock during the second quarter under its previous Board-authorized repurchase program. Aggregate stock repurchases under the previous program totaled 6,720,200 shares.
Share repurchases will be made in the open market at prevailing market prices or in privately negotiated transactions in accordance with all applicable securities laws and regulations. Such repurchases may occur from time to time and may be discontinued at any time.
The following statements are based on PGi’s current expectations. These statements contain forward-looking statements and company estimates, and actual results may differ materially. PGi assumes no duty to update any forward-looking statements made in this press release.
Based on the strength of its second quarter results and current business trends, PGi increased its financial outlook for 2011. Based on current trends and foreign currency exchange rates, PGi now anticipates net revenues from continuing operations in 2011 will be in the range of $460-$470 million and non-GAAP diluted EPS from continuing operations will be in the range of $0.60-$0.62*, including marketing and advertising costs associated with the launch of our new virtual meetings solutions.
PGi will host a conference call today at 5:00 p.m., Eastern Time, 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: (888) 239-5348 (U.S. and Canada) or (913) 312-1513 (International). The conference call will simultaneously be webcast. Please visit www.pgi.com for webcast details and conference call replay information, as well as the webcast archive and the text of the earnings release, including the financial and statistical information to be presented during the call.
*Non-GAAP Financial Measures
To supplement the company’s consolidated financial statements presented in accordance with GAAP, we have included the following non-GAAP measures of financial performance: non-GAAP operating income, non-GAAP net income from continuing operations, non-GAAP diluted net income per share (EPS) from continuing operations and organic growth. The company has also included these non-GAAP measures, as well as net revenues and segment net revenues, on a constant currency basis. 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. Please see the table 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.
About Premiere Global Services, Inc. | PGi
PGi is a global leader in virtual meetings. For 20 years, we have innovated technologies that help people meet and collaborate in more enjoyable and productive ways. Every month, we bring together over 15 million people in nearly 4 million virtual meetings. Headquartered in Atlanta, PGi has a presence in 24 countries worldwide. For more information, visit us at http://www.pgi.com.
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, Inc.’s forward-looking statements, including, but not limited to, the following factors: competitive pressures, including pricing pressures; technological changes and the development of alternatives to our services; market acceptance of new services, including our iMeet®and GlobalMeet®services; our ability to attract new customers and to retain and further penetrate our existing customer base; risks associated with challenging global economic conditions; costs or difficulties related to the integration of any new technologies; service interruptions and network downtime; price increases from our telecommunications service providers; technological obsolescence and our ability to upgrade our equipment or increase our network capacity; concerns regarding the security of transactions; our level of indebtedness; future write-downs of goodwill or other intangible assets; assessment of income, state sales and other taxes; restructuring and cost reduction initiatives and the market reaction thereto; risks associated with acquisitions and market expansion; the impact of the recent sale of our PGiSend business; our ability to protect our intellectual property rights, including possible adverse results of litigation or infringement claims; regulatory or legislative changes, including further government regulations applicable to traditional telecommunications service providers; risks associated with international operations, including political instability and fluctuations in foreign currency exchange rates; and other factors described from time to time in our press releases, reports and other filings with the Securities and Exchange Commission, including but not limited to the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2010. All forward-looking statements attributable to us or a person acting on our behalf are expressly qualified in their entirety by this cautionary statement.