ATLANTA, October 22, 2009 - Premiere Global Services, Inc. (NYSE: PGI), a global provider of on-demand, applied communication technologies, today announced results for the third quarter ended September 30, 2009. Consolidated net revenues totaled $148.0 million in the third quarter of 2009 ($149.4 million on a constant currency basis*), compared to $156.5 million in the third quarter of 2008.
Revenue from the Company’s PGiMeet conferencing and collaboration solutions totaled $111.4 million ($112.6 million on a constant currency basis*) in the third quarter of 2009, compared to $112.9 million in the third quarter of 2008.
The Company continued its efforts to focus and streamline its business in the third quarter, resulting in approximately $16.9 million in restructuring costs and asset impairments. In the third quarter of 2009, the Company’s operating loss totaled $1.2 million, net loss from continuing operations totaled $4.6 million and diluted EPS from continuing operations totaled ($0.08). Excluding restructuring costs, asset impairments and other items set forth on the attached reconciliation of non-GAAP financial measures table, the Company’s non-GAAP operating income totaled $20.8 million*, non-GAAP net income from continuing operations totaled $11.7 million* and non-GAAP diluted EPS from continuing operations totaled $0.20* in the third quarter of 2009.
“Our business is continuing to feel the lagging effects of today’s lower business activity and higher levels of global unemployment,” said Boland T. Jones, Founder, Chairman and CEO of Premiere Global Services, Inc. “Although we are cautious in our near-term business outlook, we are encouraged by recent data that suggest the economy may be stabilizing. We remain very excited about our Company, our market and our strategies for growth, and we continue to actively invest in our future.”
In the third quarter of 2009, net revenue in the Company’s reportable segments changed from the comparable prior year quarter as follows:
+ North America totaled $91.3 million, versus $96.3 million;
+ Europe totaled $28.0 million, versus $30.8 million; and
+ Asia Pacific totaled $28.7 million, versus $29.5 million.
Nine Month Results
Consolidated net revenues for the nine months ended September 30, 2009 were $457.0 million, compared to $468.9 million for the comparable prior year period. For the nine months ended September 30, 2009, operating income totaled $33.7 million, net income from continuing operations totaled $15.2 million and diluted EPS from continuing operations totaled $0.26. The Company’s non-GAAP operating income totaled $74.4 million*, non-GAAP net income from continuing operations totaled $43.1 million* and non-GAAP diluted EPS from continuing operations totaled $0.72* for this nine-month period, excluding the items set forth on the attached reconciliation of non-GAAP financial measures table.
The Company also announced today its intention to divest its email marketing business. While a transaction has not yet been consummated, the Company has met the criteria to classify this business as discontinued operations, and prior period results have been reclassified to conform to this presentation. In connection with the decision, the Company recorded a non-cash charge of $7.3 million in discontinued operations to reduce the carrying value of the assets associated with this business to reflect their estimated current value. Adjusted quarterly results reflecting this business as discontinued operations in 2008 and 2009 are presented in the Company’s Current Report on Form 8-K filed today.
“We are continuing to align our Company around our core expertise in collaboration services,” said Mr. Jones. “Although we believe that we developed a competitive email marketing product suite, these specialized applications have proven to be a very different sale for us, and they have not produced many synergies with our core PGiMeet and PGiSend solutions customers. Accordingly, we plan to divest this very small portion of our revenues. We are confident these customers will continue to be fully supported with the high level of service they have come to expect from us.”
* 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 revenue 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.
The following statements are based on Premiere Global’s current expectations as of October 22, 2009. 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. 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 continues to anticipate that its operating results will be in-line with its previous outlook. Based on current foreign currency exchange rates, the Company anticipates that in the fourth quarter of 2009, consolidated net revenues will be in the range of $140-$144 million and non-GAAP diluted EPS from continuing operations* will be in the range of $0.17-$0.19.
View financial data
The Company will hold a conference call at 5:00 p.m., Eastern Time, this afternoon 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) 820-9416 (U.S. and Canada) or (913) 312-0974 (International).
The conference call will simultaneously be webcast. Please visit www.pgi.com/investors 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.
A replay will be available following the call at 8:00 p.m., Eastern Time, tonight through midnight, Eastern Time, on October 30, 2009, and can be accessed by calling (888) 203-1112 (U.S. and Canada) or (719) 457-0820 (International). The confirmation code is 1432472.
About Premiere Global Services, Inc.
Premiere Global Services, Inc., formerly Ptek Holdings, Inc., is a leading global provider of innovative business communications and data services. Customers use our ASP platform to conduct traditional and VoIP-based collaboration sessions and to process and deliver large quantities of individualized, business critical information. Premiere Global offers outsourced document delivery, data capture, alerts/notifications and campaign management solutions that automate customers' business processes and improve efficiency levels enterprise-wide. We also offer a full suite of conferencing solutions, including automated, operator-assisted and Web collaboration services that enable customers to communicate real-time via our advanced, open standards global conferencing platform.
Premiere Global serves more than 46,000 corporate accounts in nearly every business sector, throughout 18 countries worldwide. Our corporate headquarters is located at 3399 Peachtree Road NE, Suite 700, Atlanta, GA 30326. Additional information can be found 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; 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; 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.