ATLANTA, July 22, 2010 - Premiere Global Services, Inc. (NYSE: PGI), a global meetings expert, today announced results for the second quarter ended June 30, 2010.
Consolidated net revenues totaled $144.6 million in the second quarter of 2010, including $110.9 million from the Company's PGiMeet solutions. In the second quarter of 2010, diluted EPS from continuing operations was $0.07, and non-GAAP diluted EPS from continuing operations was $0.20.*
In the second quarter of 2009, consolidated net revenues totaled $153.9 million, including $116.7 million from the Company's PGiMeet solutions, diluted EPS from continuing operations was $0.14, and non-GAAP diluted EPS from continuing operations was $0.25.* Results for 2009 are adjusted to reflect the Company's email marketing business as discontinued operations.
“Our long-term growth drivers remain strong, though our current business trends continue to reflect the weight of a sluggish global economy,”said Boland T. Jones, Founder, Chairman and CEO of Premiere Global Services, Inc. “We continue to aggressively manage our business, while at the same time investing in our strategy of transitioning PGi toward an online meetings company, which we believe will deliver higher value to our customers and shareholders.”
“We are excited about the announcement of our expanded beta of iMeet®, which we designed to provide a more enjoyable, intuitive and productive meeting experience for our users. iMeet is the first of our online meetings applications to be deployed on PGi's next-generation collaboration platform.”
Six Month Results
Consolidated net revenues totaled $291.0 million in the six months ended June 30, 2010, including $223.4 million from the Company's PGiMeet solutions. In the first half of 2010, diluted EPS from continuing operations was $0.20, and non-GAAP diluted EPS from continuing operations was $0.38.*
In the six months ended June 30, 2009, consolidated net revenues totaled $309.0 million, including $234.6 million from the Company's PGiMeet solutions. In the first half of 2009, diluted EPS from continuing operations was $0.33, and non-GAAP diluted EPS from continuing operations was $0.52.*
2010 Financial Outlook
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. The Company assumes no duty to update any forward-looking statements made in this press release.
Foreign currency exchange rates have changed meaningfully since the Company initially provided its financial outlook for 2010. Additionally, volume and pricing trends in the Company's customer base continue to be affected by current economic conditions, including high levels of global unemployment and reduced levels of business activity. Based on current trends and foreign currency exchange rates, the Company now anticipates consolidated net revenues will be in the range of $568-$576 million and non-GAAP diluted EPS from continuing operations will be in the range of $0.68-$0.71* in 2010, including marketing and advertising costs associated with the launch of its new collaboration applications.
The Company will host a conference call this afternoon 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) 211-4435 (U.S. and Canada) or (913) 312-0688 (International). The conference call will simultaneously be webcast. Please visit www.pgi.com for webcast details, as well as the webcast archive, replay details 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 consolidated net revenues, segment net revenues and certain solutions revenue, 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
The world collaborates with PGi. Our advanced meeting, conferencing and collaboration solutions energize people and organizations to connect more meaningfully and work together more productively. Our customers include more than 50,000 companies and nearly 90% of the Fortune 500. Every month, 12 million people around the world use PGi’s advanced solutions and next-generation platform to meet, work and collaborate. PGi is headquartered in Atlanta, Georgia with operations in 24 countries worldwide. You can learn more at 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; the development of alternatives to our services; general domestic and international economic, business or political conditions; risks associated with challenging global economic conditions or a prolonged recession, including customer consolidations, restructuring, bankruptcies or payment defaults; market acceptance of our new services and enhancements; our ability to complete acquisitions and successfully integrate acquired operations; concerns regarding the security of sending information over the Internet and public networks; our ability to upgrade our equipment or increase our network capacity; service interruptions; continued weakness in our legacy broadcast fax business; our dependence on telecommunications supply agreements; increased financial leverage; our dependence on our subsidiaries for cash flow; future write-downs of goodwill or other intangible assets; assessments of income, sales and other taxes for which we have not accrued; our ability to attract and retain key personnel; our ability to protect our proprietary technology and intellectual property rights; possible adverse results of pending or future litigation or infringement claims; federal, state or international legislative or regulatory changes, including further government regulations applicable to traditional telecommunications service providers; risks associated with international operations and fluctuations in currency exchange rates; changes in and the successful execution of restructuring and cost reduction initiatives and the market reaction thereto and other factors described from time to time in our press releases, reports and other filings with the SEC, including but not limited to the “Risk Factors” sections of our Annual Report on Form 10-K for the year ended December 31, 2009 and our Quarterly Report on Form 10-Q for the quarter ended March 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.