Exhibit 99.1
Ptek Holdings Reports Fourth Quarter 2003 Revenue of $101.1 Million
and Diluted EPS from Continuing Operations of $0.11
ATLANTA--(BUSINESS WIRE)--Feb. 19, 2004--Ptek Holdings, Inc.
(NASDAQ: PTEK)
-- Income from Continuing Operations for the Year Totals $26.9
Million on Revenue of $381.3 Million
-- Company Raises 2004 Financial Outlook
Ptek Holdings, Inc. (NASDAQ: PTEK)(www.ptek.com), a leading
provider of innovative business communications services, today
announced results for the fourth quarter and fiscal year ended
December 31, 2003. Revenue was $101.1 million for the quarter, a 19.6%
increase from fourth quarter 2002 revenue of $84.5 million. Income
from continuing operations increased to $7.3 million in the fourth
quarter of 2003 from $6.7 million in the comparable prior year period.
Diluted EPS from continuing operations totaled $0.11 in the fourth
quarter of 2003 compared to $0.12 in the fourth quarter of 2002.
Diluted shares outstanding averaged 72.4 million for the quarter, a
29.8% increase from the fourth quarter of 2002.
Total revenue in 2003 was $381.3 million compared to $341.3
million in 2002. Income from continuing operations increased to $26.9
million in 2003 from $14.4 million in 2002. Diluted EPS from
continuing operations in 2003 was $0.45 compared to $0.26 in the prior
year.
Balance Sheet Improvements
During the quarter, the Company redeemed $35 million principal
amount of its convertible notes due July 2004, bringing the
outstanding balance of these notes to $15 million on December 31,
2003, down from $172.5 million on March 31, 2003. The Company intends
to retire the remainder of these notes upon maturity.
Ptek continued to improve certain leverage measurements during the
quarter, as net debt to equity decreased to 0.6 to 1.0 on December 31,
2003, down from 1.3 to 1.0 on December 31, 2002 (see table attached
for a calculation of this non-GAAP financial measure).
"Solid revenue growth, substantial bottom line improvement,
increasing cash flow and an improved balance sheet made for a very
successful 2003," said Boland T. Jones, Founder, Chairman and CEO of
Ptek Holdings, Inc. "With new product innovations coming on stream in
2004, we look forward to another year of solid performance."
Business Unit Performance
Revenue at Premiere Conferencing (www.premconf.com) grew 17.0% in
the fourth quarter 2003, totalling $41.0 million versus $35.1 million
in the comparable prior year period. Premiere Conferencing revenue
increased to $157.7 million in 2003 from $138.5 million in 2002.
Revenue at Xpedite (www.xpedite.com) grew 21.5% during the fourth
quarter of 2003, totalling $60.1 million versus $49.5 million in the
same period last year. Xpedite revenue increased to $223.8 million in
2003 from $202.9 million in 2002.
2003 Accomplishments
-- Delivered 3.8 billion messages in 2003, a 33% increase from
2002
-- Hosted more than 1.3 billion conferencing minutes in 2003, a
40% increase from 2002
-- Doubled international revenue at Premiere Conferencing in 2003
compared to 2002
-- Designed, developed and deployed innovative services, such as
fax2mail, secureMAIL and ReadyConference(R) Plus
-- Streamlined management team and improved operating efficiency
-- Increased operating cash flow by more than 87% from 2002 to
$58.8 million
-- Repurchased and refinanced $157.5 million of convertible notes
due July 2004
-- Completed offering of $85.0 million of five-year 5.0%
convertible notes
-- Secured a $60 million, three-year line of credit with LaSalle
Bank National Association and Bank of America, N.A.
Other Announcements
William E. Franklin, who has served as the Company's Chief
Financial Officer since October 2001, has accepted a similar position
with a public company in his home state of California. Mr. Franklin
will transition his duties as Chief Financial Officer to Jeffrey A.
Allred, President and Chief Operating Officer, to whom he currently
reports. Mr. Franklin will be starting his new position in late March
after assisting Ptek with its year-end matters and the filing of its
Form 10-K, including the certification of its financial statements.
Financial Outlook
The following statements are based on Ptek's current expectations
as of February 19, 2004. 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 filings
with the Securities and Exchange Commission.
The Company believes revenue in the first quarter of 2004 will be
in the range of $102 million to $103 million. Diluted EPS from
continuing operations for the first quarter of 2004 is expected to be
approximately $0.12. The Company estimates revenue for 2004 will be in
the range of $410 million to $420 million and diluted EPS from
continuing operations for 2004 will be in the range of $0.48 to $0.52.
Average diluted shares outstanding in 2004 are estimated to be
approximately 75 million, and the Company assumes an effective tax
rate for the year between 38% and 39%.
Conference Call
The Company will hold a conference call at 4:30 p.m. ET this
afternoon to discuss these results. To participate in the call, please
dial-in to the appropriate number below 5-10 minutes prior to the
scheduled start time: (800) 810-0924 (US & Canada) or (913) 981-4900
(International). The conference call will be simultaneously broadcast
over the Internet via SoundCast(R), a Premiere Conferencing service,
and can be found at http://www.ptek.com. You may also follow this link
for details on the Internet replay and for the text of the earnings
release, including the financial and statistical information to be
presented in the call.
A replay will be available following the call at 7:30 p.m. ET,
through midnight February 27, 2004, and may be accessed by calling
(888) 203-1112 (US & Canada) or (719) 457-0820 (International). The
confirmation code is 759796. The Webcast of this call will be archived
on the Company's Website at www.ptek.com.
About Ptek Holdings, Inc.
Ptek Holdings, Inc. is a leading provider of innovative business
communications services that enable global enterprises to better
communicate with constituents, acquire and retain customers and
automate business processes. These services, which include
conferencing, Web collaboration and electronic messaging, are marketed
under the Premiere Conferencing and Xpedite(R) brand names.
Ptek Holdings' corporate headquarters is located at 3399 Peachtree
Road NE, Suite 700, Atlanta, GA 30326. Additional information can be
found at www.ptek.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 Ptek's forward-looking statements, including the
following factors: our ability to respond to rapid technological
change, the development of alternatives to our products and services
and the risk of obsolescence of our products, services and technology;
market acceptance of new products and services; our ability to manage
our growth; costs or difficulties related to the integration of
businesses and technologies, if any, acquired or that may be acquired
by us 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
our strategic relationships, including the amount of business
generated and the viability of the strategic partners, may not meet
expectations; possible adverse results of pending or future litigation
or adverse results of current or future infringements claims; our
ability to service or repay all or a portion of our convertible notes
issued to the public, a portion of which mature on July 1, 2004 and
the remainder of which mature on August 15, 2008; the failure of the
purchaser to pay the liabilities assumed in, or incurred after, the
sale or our former Voicecom business unit; our services may be
interrupted due to failure of the platforms and network infrastructure
utilized in providing our services; our services may be interrupted
and our costs may increase due to the filing by MCI and Global
Crossing for protection under Chapter 11 of the United States
Bankruptcy Code and MCI's notice of rejection of some (if not all) of
our telecommunication service agreements; competitive pressures among
communications services providers, including pricing pressures, may
increase significantly, particularly after the emergence of MCI and
Global Crossing from 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 our customers and the ability of those customers to pay
for services utilized; risks associated with expansion of our
international operations; general economic or business conditions,
internationally, nationally or in the local jurisdiction in which we
are doing business, may be less favorable than expected; legislative
or regulatory changes, such as the recent Federal Communications
Commission's revisions to the rules interpreting the Telephone
Consumer Protection Act of 1991, may adversely affect the businesses
in which we are engaged; changes in the securities markets may
negatively impact us; increased leverage in the future may harm our
financial condition and results of operations; our dependence on our
subsidiaries for cash flow may negatively affect our business and our
ability to pay amounts due under our indebtedness; and other factors
described from time to time in our press releases, reports and other
filings with the SEC. These and other factors may cause our actual
results to differ materially from any of our forward-looking
statements. All forward-looking statements attributable to us or a
person acting on our behalf are expressly qualified in their entirety
by this cautionary statement.
PTEK HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2003 AND 2002
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended Twelve Months Ended
---------------------- ---------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2003 2002 2003 2002
-------- --------- -------- --------
(Unaudited) (Unaudited) (Unaudited)
REVENUES $101,108 $ 84,511 $381,280 $341,253
OPERATING EXPENSES:
Cost of revenues
(exclusive of
depreciation shown
separately below) 35,520 27,392 133,507 117,663
Selling and marketing 25,433 22,516 101,398 88,970
General and
administrative 14,802 16,037 56,418 55,845
Research and development 2,009 1,611 8,569 7,236
Depreciation 6,322 4,957 23,575 21,526
Amortization 1,698 2,362 6,746 10,876
Restructuring costs 1,309 1,834 10,947 1,834
Asset impairments - 3,202 - 3,202
Equity based
compensation 583 230 2,921 1,871
Net legal settlements
and related expenses - - - 7,325
-------- --------- -------- --------
Total operating expenses 87,676 80,141 344,081 316,348
-------- --------- -------- --------
OPERATING INCOME 13,432 4,370 37,199 24,905
-------- --------- -------- --------
OTHER INCOME (EXPENSE):
Interest expense (2,252) (2,434) (9,603) (11,510)
Interest income 281 1,056 874 1,482
Gain on sale of
marketable securities 971 141 1,600 930
(Loss) Gain on
repurchase of bonds (376) - 41 -
Other, net (37) 99 81 (8)
-------- --------- -------- --------
Total other income
(expense) (1,413) (1,138) (7,007) (9,106)
-------- --------- -------- --------
INCOME FROM CONTINUING
OPERATIONS BEFORE
INCOME TAXES 12,019 3,232 30,192 15,799
INCOME TAX (BENEFIT)
EXPENSE 4,688 (3,452) 3,279 1,376
-------- --------- -------- --------
INCOME FROM CONTINUING
OPERATIONS $ 7,331 $ 6,684 $ 26,913 $ 14,423
======== ========= ======== ========
DISCONTINUED OPERATIONS:
Loss from operations
from Voicecom
(including loss on
disposal of $13,887 in
2002) - 3,544 (1,597) (16,172)
Income tax benefit - 3,261 (621) (3,640)
-------- --------- -------- --------
Gain (Loss) on
discontinued operations - 283 (976) (12,532)
-------- --------- -------- --------
NET INCOME $ 7,331 $ 6,967 $ 25,937 $ 1,891
======== ========= ======== ========
BASIC EARNINGS (LOSS)
PER SHARE:
Income from continuing
operations $ 7,331 $ 6,684 $ 26,913 $ 14,423
-------- --------- -------- --------
Net Income $ 7,331 $ 6,967 $ 25,937 $ 1,891
-------- --------- -------- --------
BASIC WEIGHTED AVERAGE
SHARES OUTSTANDING: 56,181 53,479 53,767 53,550
======== ========= ======== ========
Basic earnings (loss)
per share:
Continuing operations $ 0.13 $ 0.12 $ 0.50 $ 0.27
Discontinued operations $ 0.00 $ 0.01 $ (0.02) $ (0.23)
-------- --------- -------- --------
Net Income $ 0.13 $ 0.13 $ 0.48 $ 0.04
======== ========= ======== ========
DILUTED EARNINGS (LOSS)
PER SHARE:
Income from continuing
operations for purposes
of computing diluted
net income per share $ 7,979 $ 6,684 $ 27,886 $ 14,423
-------- --------- -------- --------
Net Income for purposes
of computing diluted
net income per share $ 7,979 $ 6,967 $ 26,910 $ 1,891
-------- --------- -------- --------
DILUTED WEIGHTED AVERAGE
SHARES OUTSTANDING: 72,437 55,828 61,301 56,262
======== ========= ======== ========
Diluted earnings (loss)
per share:
Continuing operations $ 0.11 $ 0.12 $ 0.45 $ 0.26
Discontinued operations $ 0.00 $ 0.00 $ (0.01) $ (0.23)
-------- --------- -------- --------
Net Income $ 0.11 $ 0.12 $ 0.44 $ 0.03
======== ========= ======== ========
PTEK HOLDINGS, INC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2003 AND 2002
(IN THOUSANDS, EXCEPT SHARE DATA)
December 31, December 31,
2003 2002
--------- ---------
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and equivalents $ 24,354 $ 68,777
Marketable securities, available for sale 575 641
Accounts receivable (less allowances of
$4,451 and $7,074, respectively) 57,760 51,909
Prepaid expenses and other 6,348 8,872
Deferred income taxes, net 20,938 15,801
--------- ---------
Total current assets 109,975 146,000
--------- ---------
PROPERTY AND EQUIPMENT, NET 63,563 63,148
OTHER ASSETS
Goodwill 123,066 123,066
Intangibles, net 24,553 7,802
Deferred income taxes, net 10,521 6,648
Notes receivable - employees 1,988 2,083
Other assets 6,039 3,346
--------- ---------
$ 339,705 $ 352,093
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 37,029 $ 37,110
Accrued taxes 10,984 8,250
Accrued expenses 33,909 32,319
Current maturities of long term debt and
capital lease obligations 15,000 4,320
Accrued restructuring costs 4,427 1,898
--------- ---------
Total current liabilities 101,349 83,897
--------- ---------
LONG-TERM LIABILITIES
Convertible subordinated notes 85,000 172,500
Long-term debt and capital lease obligations 5,000 3,407
Other accrued expenses 14,638 7,951
--------- ---------
Total long term liabilities 104,638 183,858
--------- ---------
SHAREHOLDERS' EQUITY
Common stock $0.01 par value; 150,000,000
shares authorized, 57,289,895 and
58,733,628 shares issued in 2003 and 2002
and 57,289,895 and 53,540,828 shares
outstanding in 2003 and 2002, respectively 572 587
Unrealized gain on marketable securities (110) 276
Additional paid-in capital 602,452 603,883
Unearned restricted stock compensation (813) (1,913)
Treasury stock, at cost - (22,112)
Note receivable, shareholder (5,343) (5,042)
Cumulative translation adjustment (507) (2,810)
Accumulated deficit (462,533) (488,531)
--------- ---------
Total shareholders' equity 133,718 84,338
--------- ---------
$ 339,705 $ 352,093
========= =========
PTEK HOLDINGS, INC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2003 AND 2002
(IN THOUSANDS, UNAUDITED)
Years Ended
December 31,
2003 2002
--------- --------
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss) 25,937 1,891
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
(Gain) Loss on discontinued operation 976 12,532
Depreciation 23,575 21,526
Amortization 6,746 10,876
Gain on sale of marketable securities, available
for sale (1,600) (930)
Loss (Gain) on repurchase of bonds (41) -
Deferred income taxes (1,628) 2,516
Asset Impairments - 3,202
Restructuring costs, net 6,350 (1,074)
Non-cash portion of legal settlement - 1,310
Equity based compensation 2,921 1,871
Changes in assets and liabilities:
Accounts receivable, net (1,875) (2,365)
Prepaid expenses and other current assets 1,422 3,605
Accounts payable and accrued expenses (3,977) (17,716)
--------- --------
Total adjustments 32,869 35,353
--------- --------
Net cash provided by operating activities from
continuing operations 58,806 37,244
--------- --------
Net cash used in operating activities from
discontinued operations - (5,804)
--------- --------
Total cash provided by operating
activities 58,806 31,440
--------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (18,455) (13,760)
Proceeds from sale of business - 7,248
Business acquisitions (23,340) (701)
Decrease in restricted cash for acquisitions - -
Sale of marketable securities 2,932 1,038
Purchase of Marketable securities (1,580) -
Purchase of note receivable, net of proceeds 19 -
--------- --------
Net cash used in investing activities from
continuing operations (40,424) (6,175)
--------- --------
Net cash used in investing activities from
discontinued operations - (155)
--------- --------
Net cash used in investing activities (40,424) (6,330)
--------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments under borrowing arrangements (174,916) (3,587)
Proceeds from long term borrowing arrangements 97,671 4,000
Purchase of treasury stock, at cost (627) (6,618)
Exercise of stock options 15,298 294
--------- --------
Net cash (used in) provided by financing activities
from continuing operations (62,574) (5,911)
--------- --------
Net cash used in financing activities from
discontinued operations - (1,086)
--------- --------
Total cash (used in) provided by
financing activities (62,574) (6,997)
--------- --------
Effect of exchange rate changes on cash and
equivalents (231) 2,641
--------- --------
NET DECREASE IN CASH AND EQUIVALENTS (44,423) 20,754
--------- --------
CASH AND EQUIVALENTS, beginning of period 68,777 48,023
--------- --------
CASH AND EQUIVALENTS, end of period $ 24,354 $ 68,777
========= ========
PTEK HOLDINGS, INC AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(IN THOUSANDS, UNAUDITED)
December 31,
2003 2002
-------- --------
NET DEBT TO EQUITY (1)
Current maturities of long-term debt and
capital lease obligations $ 15,000 $ 4,320
Long-term debt and capital lease obligations 5,000 3,407
Convertible subordinated notes 85,000 172,500
-------- --------
TOTAL DEBT 105,000 180,227
Cash and cash equivalents 24,354 68,777
-------- --------
TOTAL CASH 24,354 68,777
-------- --------
NET DEBT (TOTAL DEBT LESS CASH) $ 80,646 $111,450
-------- --------
EQUITY $133,718 $ 84,338
-------- --------
NET DEBT TO EQUITY 0.60 1.32
======== ========
(1) Net debt is a non-GAAP financial measure. Management believes
that net debt provides useful information regarding the level of
the Company's indebtedness by reflecting cash and cash
equivalents that would be used to repay debt.
CONTACT: Ptek Holdings, Inc., Atlanta
Investor Calls
Sean O'Brien, 404-262-8462