ATLANTA, February 23, 2010 - Premiere Global Services, Inc. (NYSE: PGI), a leading provider of meeting and collaboration solutions, today announced results for the fourth quarter and fiscal year ended December 31, 2009.
Premiere Global Services, Inc. (NYSE: PGI), a leading provider of meeting and collaboration solutions, today announced results for the fourth quarter and fiscal year ended December 31, 2009.
Consolidated net revenues totaled $144.5 million in the fourth quarter of 2009, including $108.0 million from the Company’s PGiMeet solutions. In the fourth quarter of 2009, diluted EPS from continuing operations was $0.10, and non-GAAP diluted EPS from continuing operations was $0.18.*
For the fourth quarter of 2008, the Company reported consolidated net revenues of $151.5 million, including $111.6 million from its PGiMeet solutions. Diluted EPS from continuing operations was $0.16 in the fourth quarter of 2008, and non-GAAP diluted EPS from continuing operations was $0.27.* Results for 2008 are adjusted to reflect the Company’s PGiMarket email marketing business as discontinued operations.
“Although we continue to feel the effects of high unemployment and low business activity, our trends showed signs of improvement in the fourth quarter,” said Boland T. Jones, Founder, Chairman and CEO of Premiere Global Services, Inc. “We believe our efforts to focus PGi around our leadership in virtual group meetings, along with the investments we are making in sales, marketing and new product development, position us for accelerated growth as the economy improves.
“Today, companies worldwide are forced to do more with less, and they are increasingly relying on collaboration technologies to help drive productivity and business efficiencies in order to remain competitive. With a history of innovation spanning more than 25 years, we believe PGi is well positioned to continue to meet the growing customer demand for simpler, yet more powerful and more productive collaboration solutions.
“This year, we plan to release a new online meeting and collaboration platform that we have specifically developed to provide one of the easiest, most intuitive and engaging user experiences in the market today. While we are still finalizing launch plans, we intend to increase our marketing and advertising spend this year in order to establish this exciting new platform in the market.”
Fiscal Year 2009 Results
In 2009, consolidated net revenues totaled $601.5 million, including $454.0 million from the Company’s PGiMeet solutions. Diluted EPS from continuing operations was $0.36 in 2009, and non-GAAP diluted EPS from continuing operations was $0.90.*
In 2008, consolidated net revenues totaled $620.4 million, including $443.3 million from the Company’s PGiMeet solutions. Diluted EPS from continuing operations was $0.67 in 2008, and non-GAAP diluted EPS from continuing operations was $1.09.*
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.
“Unlike most technology companies, we entered 2009 with good business momentum and double-digit organic growth in our PGiMeet solutions,” said Mr. Jones. “As a result, we anticipate revenues will be relatively flat in 2010, with year-over-year comparisons improving in the second half of the year. We also anticipate 2010 will be another year of solid profitability and cash flows for PGi.”
For 2010, based on current trends and foreign currency exchange rates, the Company anticipates consolidated net revenues will be in the range of $585-$600 million and non-GAAP diluted EPS from continuing operations will be in the range of $0.72-$0.75*, which includes anticipated marketing and advertising costs associated with the launch of its new collaboration platform.
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) 213-3754 (U.S. and Canada) or (913) 312-0826 (International).
The conference call will simultaneously be webcast. Please visit www.pgi.com for webcast details, 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 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 PGi
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; weakening global economic and credit conditions, including customer consolidations, restructuring, bankruptcies or payment defaults; market acceptance of our new services and enhancements; our ability to complete acquisitions and 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 protect our proprietary technology and intellectual property rights; possible adverse results of pending or future litigation or infringement claims; federal or state 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, 2008 and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2009. All forward-looking statements attributable to us or a person acting on our behalf are expressly qualified in their entirety by this cautionary statement.