(Source: Business Wire)
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."
Revenue Detail
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.
Other News
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.
Financial Outlook
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.
Conference Call
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.premiereglobal.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. provides on-demand, applied communication
technologies that revolutionize the way people interact. Every month,
nearly 12 million people around the world use Premiere Global's advanced
solutions and next-generation collaboration platform to work,
collaborate and make meaningful connections. Customers include more than
50,000 companies and nearly 90% of the Fortune 500. Premiere
Global is headquartered in Atlanta, Georgia, and operates in 24
countries worldwide. Additional information can be found at www.premiereglobal.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.
PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
(Unaudited) (Unaudited)
Net revenues $ 148,002 $ 156,532 $ 457,017 $ 468,886
Operating expenses:
Cost of revenues (exclusive of depreciation and amortization shown separately below)
64,471 64,185 195,469 190,399
Selling and marketing 34,540 37,044 107,255 115,808
General and administrative 16,655 16,867 48,514 49,470
Research and development 4,575 3,793 12,558 11,374
Excise tax expense - - - 2,890
Depreciation 9,458 7,934 27,180 23,324
Amortization 2,515 3,957 8,272 11,814
Restructuring costs 13,304 - 19,585 3,339
Asset impairments 3,615 249 3,615 249
Net legal settlements and related expenses 51 784 212 2,392
Acquisition-related costs 41 - 612 -
Total operating expenses 149,225 134,813 423,272 411,059
Operating income (loss) (1,223 ) 21,719 33,745 57,827
Other (expense) income:
Interest expense (3,286 ) (4,501 ) (11,077 ) (14,662 )
Unrealized gain on change in fair value of interest rate swaps 786 629 2,872 260
Interest income 86 67 266 418
Other, net (220 ) (122 ) (310 ) 694
Total other (expense), net (2,634 ) (3,927 ) (8,249 ) (13,290 )
Income (loss) from continuing operations before income taxes (3,857 ) 17,792 25,496 44,537
Income tax expense 699 5,933 10,279 13,436
Net income (loss) from continuing operations (4,556 ) 11,859 15,217 31,101
Loss on discontinued operations, net of taxes (8,060 ) (1,101 ) (9,824 ) (2,769 )
Net income (loss) $ (12,616 ) $ 10,758 $ 5,393 $ 28,332
BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING 59,049 59,461 58,907 59,400
Basic net income (loss) per share
Continuing operations $ (0.08 ) $ 0.20 $ 0.26 $ 0.52
Discontinued operations (0.14 ) (0.02 ) (0.17 ) (0.05 )
Net income (loss) per share $ (0.21 ) $ 0.18 $ 0.09 $ 0.48
DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING 59,049 60,535 59,457 60,611
Diluted net income (loss) per share
Continuing operations $ (0.08 ) $ 0.20 $ 0.26 $ 0.51
Discontinued operations (0.14 ) (0.02 ) (0.17 ) (0.05 )
Net income (loss) per share $ (0.21 ) $ 0.18 $ 0.09 $ 0.47
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PREMIERE GLOBAL SERVICES, INC.
