Exhibit 99.1
PTEK Holdings Reports First Quarter 2003 Revenue of $89.2 Million and
$0.09 Diluted EPS from Continuing Operations
ATLANTA--(BUSINESS WIRE)--April 29, 2003--
Income from Continuing Operations More than Doubles
to $4.8M from $2.1M
Ptek Holdings, Inc. (NASDAQ: PTEK)(www.ptek.com), a leading
provider of enhanced multimedia communications services, today
announced results for the first quarter ended March 31, 2003:
Financial Summary (unaudited)
(In thousands, except per share data)
Three Months Ended
31-Mar-03 31-Mar-02
------------- -------------
Revenue $ 89,220 $ 83,321
Operating Income $ 10,668 $ 5,944
Income from Continuing Operations $ 4,779 $ 2,080
Diluted EPS from Continuing Operations $ 0.09 $ 0.04
Revenue from continuing operations was $89.2 million for the
quarter compared to $83.3 million in the first quarter of 2002. Income
from continuing operations increased to $4.8 million in the first
quarter of 2003 from $2.1 million in the year ago period. Diluted EPS
from continuing operations increased to $0.09 from $0.04 in the first
quarter of 2002. EBITDA(a) was $18.5 million in the first quarter of
2003 versus $15.7 million in the first quarter of 2002.
Ptek's accomplishments in 2003 include:
-- Transactional and new services at Xpedite accounted for more
than 33% of total operating unit revenue in the quarter.
-- Premiere Conferencing set new daily, weekly and monthly volume
records during the quarter.
-- Expanded the suite of services at Premiere Conferencing with
the addition of ReadyConference(R) EuroMeeting(SM),
VisionCast(R) Meeting, VisionCast seats (subscription-based
pricing model) and the roll-out of VisionCast in Europe.
-- Repurchased 159,700 shares of the company's common stock
during the quarter, increasing the total number of shares
acquired since announcing the repurchase program in June of
2000 to 4,255,500.
-- In April, repurchased $30.0 million face value of the
company's convertible notes at a discount to par.
"Obviously we are pleased with the first quarter results from both
operating units," stated Boland T. Jones, Founder, Chairman and CEO of
Ptek Holdings. "We are on plan to achieve our goals for the year in
terms of revenue, net income and earnings per share. We continue to
bring to our customers innovative new solutions to their
communications issues, and that, I believe, will serve us well in the
long term."
Operating Units' Performance
Premiere Conferencing (www.premconf.com)
(In thousands)
Three Months Ended
31-Mar-03 31-Mar-02
---------- ------------
Premiere Conferencing
Revenue $ 36,574 $ 33,317
Gross Profit % 82.0% 84.3%
Contribution Margin % 60.1% 58.5%
Premiere Conferencing's first quarter 2003 revenue grew 9.8%,
totaling $36.6 million versus $33.3 million in the year ago period.
Total conferencing minutes grew 47% during the quarter compared to
the first quarter of 2002. Automated services accounted for 74% of
total operating unit revenue, up from 68% during the first quarter of
2002. Web collaboration revenue increased 41% year-over-year, and the
new Auditorium(SM) service, introduced in the second quarter last
year, continued to gain market acceptance with revenues up 98%
sequentially from the fourth quarter of 2002.
Premiere Conferencing continued to expand its corporate customer
base, adding more than 950 new domestic customers over the preceding
quarter, including CIGNA Corporation, Danka Business Systems, Delta
Air Lines, Lam Research Corporation and Purolator Courier. The
operating unit also added numerous international customers, including
QUALCOMM, Inc., ChevronTexaco Corp., and Air France.
Xpedite (www.xpedite.com)
(In thousands)
Three Months Ended
31-Mar-03 31-Mar-02
-------------- --------------
Xpedite
Revenue $ 52,693 $ 50,004
Gross Profit % 79.5% 76.9%
Contribution Margin % 69.4% 67.9%
Revenue at the Xpedite operating unit grew 5.4% during the first
quarter of 2003, totaling $52.7 million versus $50.0 million in the
year ago period.
Xpedite delivered 572 million messages during the quarter, an
increase of 8% from the number of messages delivered in the first
quarter of 2002. messageREACH(SM) volume for the first quarter of 2003
was up 188% over the first quarter of 2002, and voiceREACH(SM) volume
increased 164% over the same period. Revenue from new services reached
$8.3 million in the quarter.
During the quarter Xpedite added a significant number of new
customer accounts, including Accenture Ltd., GlaxoSmithKline PLC and
Bayer AG.
Financial Guidance
The following statements are based on Ptek's current expectations
as of April 29, 2003. These statements are forward-looking statements
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 Annual Report on Form
10-K for the fiscal year ended December 31, 2002.
Based on the Company's first quarter performance, Ptek remains
comfortable with the financial guidance it previously provided in its
earnings release dated February 25, 2003.
About Ptek Holdings, Inc.
Ptek Holdings, Inc. (NASDAQ: PTEK) is a leading provider of
tailored business communications solutions that enable global
enterprises to better communicate with constituents, acquire and
retain customers and automate business processes. These solutions,
which include conferencing, Web collaboration and messaging, are
marketed under the Premiere Conferencing and Xpedite brand names.
Ptek Holdings' corporate headquarters is located at 3399 Peachtree
Road NE, The Lenox Building, Atlanta, GA 30326. Additional information
can be found at www.ptek.com.
(a) EBITDA is defined as income from continuing operations before
interest, taxes, depreciation and amortization. EBITDA is a non-GAAP
financial measure. A reconciliation of this non-GAAP financial measure
to the most directly comparable GAAP financial measure, operating cash
flows, is attached.
Conference Call
The Company will hold a conference call to discuss this release at
8:30 a.m. EDT on April 30, 2003. To participate, please call the
following numbers 5-10 minutes prior to the scheduled start time:
800-289-0529 (U.S. & Canada) or 913-981-5523 (International). The call
will be simultaneously broadcast over the Internet via SoundCast(R), a
Premiere Conferencing service, and can be found at
http://www.ptek.com/invest/invest.cfm. A replay of the conference call
will be available immediately following the call through midnight May
9, and may be accessed by following the above link or by dialing
888-203-1112 (U.S. and Canada) or 719-457-0820 (International). The
confirmation code is 341092.
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 Ptek's forward-looking statements, including the
following factors: competitive pressures among communications services
providers, including pricing pressures, may increase significantly;
Ptek's ability to respond to rapid technological change, the
development of alternatives to its products and services and the risk
of obsolescence of its products, services and technology; market
acceptance of new products and services; Ptek's ability to manage its
growth; costs or difficulties related to the integration of businesses
and technologies, if any, acquired or that may be acquired by Ptek may
be greater than expected; expected cost savings from past or future
mergers and acquisitions may not be fully realized or realized within
the expected time frame; revenues following past or future mergers and
acquisitions may be lower than expected; operating costs or customer
loss and business disruption following past or future mergers and
acquisitions may be greater than expected; the success of Ptek's
strategic relationships, including the amount of business generated
and the viability of the strategic relationships, may not meet
expectations; possible adverse results of pending or future litigation
or adverse results of current or future infringement claims; Ptek's
ability to service, repay or refinance all or a portion of its
convertible notes issued to the public, which mature on July 1, 2004;
the failure of the purchaser to pay the liabilities assumed in, or
incurred after, the sale of the Voicecom business unit; risks
associated with interruption in Ptek's services due to the failure of
the platforms and network infrastructure utilized in providing its
services; Ptek's services may be interrupted and its costs may
increase due to the filing by WorldCom and Global Crossing for
protection under Chapter 11 of the United States Bankruptcy Code;
domestic and international terrorist activity, war and political
instability may adversely affect the level of services utilized by
Ptek's customers and the ability of those customers to pay for
services utilized; risks associated with expansion of Ptek's
international operations; general economic or business conditions,
internationally, nationally or in the local jurisdiction in which Ptek
is doing business, may be less favorable than expected; legislative or
regulatory changes may adversely affect the business in which Ptek is
engaged; and changes in the securities markets may negatively impact
Ptek. "EBITDA" is not a standard accounting term as defined by
generally accepted accounting principles and may not be comparable to
similarly titled measures reported by other companies. For a detailed
discussion of these and other cautionary statements and factors that
could cause actual results to differ from the Company's
forward-looking statements, please refer to the Company's filings with
the Securities and Exchange Commission, especially in the "Risk
Factors Affecting Future Performance" included in the Management's
Discussion and Analysis section of the Company's Form 10-K for the
fiscal year ended December 31, 2002 and in subsequent filings filed
with the Securities and Exchange Commission.
PTEK HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2003 AND 2002
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Three Months
--------------------------
March 31, March 31,
2003 2002
------------ ------------
(Unaudited) (Unaudited)
REVENUES $ 89,220 $ 83,321
TELECOMMUNICATIONS COSTS 17,356 16,801
------------ ------------
GROSS PROFIT 71,864 66,520
DIRECT OPERATING COSTS 13,316 13,080
------------ ------------
CONTRIBUTION MARGIN 58,548 53,440
------------ ------------
OTHER OPERATING EXPENSES:
Selling and marketing 24,264 22,269
General and administrative 13,496 12,850
Research and development 2,004 2,207
Depreciation 5,533 5,234
Amortization 1,999 3,791
Equity based compensation 584 1,145
------------ ------------
Total operating expenses 47,880 47,496
------------ ------------
OPERATING INCOME 10,668 5,944
------------ ------------
OTHER INCOME (EXPENSE):
Interest expense (2,809) (3,016)
Interest income 244 134
Gain on sale of marketable securities - 789
Other, net 281 (30)
------------ ------------
Total other income (expense) (2,284) (2,123)
------------ ------------
INCOME FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES 8,384 3,821
INCOME TAX EXPENSE 3,605 1,741
------------ ------------
INCOME FROM CONTINUING OPERATIONS $ 4,779 $ 2,080
============ ============
DISCONTINUED OPERATIONS:
Loss from operations from Voicecom
(including loss on disposal of $12,625
in 2002) - (18,454)
Income tax benefit - (6,459)
------------ ------------
Loss on discontinued operations - (11,995)
------------ ------------
NET INCOME (LOSS) $ 4,779 $ (9,915)
============= ============
BASIC AND DILUTED EARNINGS (LOSS) PER
SHARE:
Continuing operations $ 0.09 $ 0.04
Discontinued operations $ - $ (0.23)
------------ ------------
Net Income (Loss) $ 0.09 $ (0.19)
============= ============
WEIGHTED AVERAGE SHARES OUTSTANDING:
BASIC 52,711 52,848
============= ============
DILUTED 54,871 55,361
============= ============
PTEK HOLDINGS, INC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2003 AND DECEMBER 31, 2002
(IN THOUSANDS, EXCEPT SHARE DATA)
March 31, December 31,
2003 2002
------------ ------------
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and equivalents $ 52,788 $ 68,777
Restricted cash 5,000 -
Marketable securities, available for sale 677 641
Accounts receivable (less allowances of
$7,386 and $7,074, respectively) 56,751 51,909
Prepaid expenses and other 9,741 8,872
Deferred income taxes, net 14,748 15,801
------------ ------------
Total current assets 139,705 146,000
------------ ------------
PROPERTY AND EQUIPMENT, NET 61,932 63,148
OTHER ASSETS
Goodwill 123,066 123,066
Intangibles, net 16,051 7,802
Deferred income taxes, net 5,420 6,648
Notes receivable - employees 2,005 2,083
Other assets 3,113 3,346
------------ ------------
$ 351,292 $ 352,093
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 34,966 $ 37,110
Accrued taxes 8,658 8,250
Accrued expenses 27,075 32,319
Current maturities of long term debt &
capital lease obligations 4,494 4,320
Accrued restructuring costs 1,608 1,898
------------ ------------
Total current liabilities 76,801 83,897
------------ ------------
LONG TERM LIABILITIES
Convertible subordinated notes 172,500 172,500
Long term debt & capital lease obligations 2,100 3,407
Other accrued expenses 10,904 7,951
------------ ------------
Total long term liabilities 185,504 183,858
------------ ------------
SHAREHOLDERS' EQUITY
Common stock $0.01 par value; 150,000,000
shares authorized,
58,789,975 and 58,733,628 shares issued in
2003 and 2002 and 53,437,475 and 53,540,828
shares outstanding in 2003 and 2002,
respectively 587 587
Unrealized gain on marketable securities 298 276
Additional paid-in capital 604,113 603,883
Unearned restricted stock compensation (1,468) (1,913)
Treasury stock, at cost (22,739) (22,112)
Note receivable, shareholder (5,117) (5,042)
Cumulative translation adjustment (2,935) (2,810)
Accumulated deficit (483,752) (488,531)
------------ ------------
Total shareholders' equity 88,987 84,338
------------ ------------
$ 351,292 $ 352,093
============ ============
PTEK HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2003 AND 2002
(IN THOUSANDS)
Three Months
March 31, March 31,
2003 2002
------------ ------------
(Unaudited) (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income
(Loss) $ 4,779 $ (9,915)
Adjustments to reconcile net loss to net cash provided
by operating activities:
Loss on discontinued operation - 11,995
Depreciation 5,533 5,234
Amortization 1,999 3,791
Gain on sale of marketable securities,
available for sale - (789)
Deferred income taxes 2,266 1,741
Payments for restructuring costs (290) (1,039)
Equity based compensation 584 1,145
Changes in assets and liabilities:
Accounts receivable, net (4,841) (9,568)
Prepaid expenses and other (559) 9,098
Accounts payable and accrued expenses (9,101) (22,571)
------------ ------------
Total adjustments (4,409) (963)
Net cash provided by (used in)
operating activities from continuing
operations 370 (10,878)
Net cash provided by operating
activities from discontinued
operations - 164
------------ ------------
Total cash provided by (used
in) operating activities 370 (10,714)
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital
expenditures (2,723) (3,180)
Proceeds from sale of business - 7,248
Business acquisitions (6,382) -
Increase in restricted cash for
acquisitions (5,000) -
Sale of marketable securities - 875
------------ ------------
Net cash (used in) provided by
investing activities from continuing
operations (14,105) 4,943
Net cash used in investing activities
from discontinued operations - (155)
------------ ------------
Net cash (used in) provided
by investing activities (14,105) 4,788
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments under borrowing
arrangements (1,133) (670)
Purchase of treasury stock, at cost (627) (41)
Exercise of stock options 91 22
------------ ------------
Net cash used in financing activities
from continuing operations (1,669) (689)
Net cash used in financing activities
from discontinued operations - (1,086)
------------ ------------
Total cash used in financing
activities (1,669) (1,775)
------------ ------------
Effect of exchange rate changes on cash and
equivalents (585) 431
------------ ------------
NET DECREASE IN CASH AND EQUIVALENTS (15,989) (7,270)
------------ ------------
CASH AND EQUIVALENTS, beginning of period 68,777 48,023
------------ ------------
CASH AND EQUIVALENTS, end of period $ 52,788 $ 40,753
============ ============
PTEK HOLDINGS, INC AND SUBSIDIARIES
RECONCILIATION OF EBITDA TO OPERATING CASH FLOWS
(IN THOUSANDS, UNAUDITED)
Three Months
-------------------------
March 31, March 31,
2003 2002
------------ ------------
(Unaudited) (Unaudited)
EBITDA $ 18,481 $ 15,728
Add:
Equity Based Compensation 584 1,145
Movement in prepaids and other assets (559) 9,098
Movement in accounts receivable, net (4,841) (9,568)
Movement in accruals and other
liabilities (9,391) (23,610)
Deferred Income tax movement 2,266 1,741
Less:
Gain on sale of marketable securities - (789)
Interest, net (2,565) (2,882)
Tax expense (3,605) (1,741)
------------ ------------
Net cash provided by (used in) operating
activities from continuing operations $ 370 $ (10,878)
============ ============
CONTACT: Ptek Holdings, Inc., Atlanta
Investor Relations
Sean O'Brien, 404/262-8462