Exhibit 99.1
Ptek Holdings Reports $105.4 Million in Revenues and $0.13 Diluted EPS from
Continuing Operations for First Quarter
ATLANTA--(BUSINESS WIRE)--April 28, 2004--
Net Income Increased 82%; Company Raises 2004 Financial Outlook
Ptek Holdings, Inc. (NASDAQ: PTEK)(www.ptek.com), a leading provider of
innovative business, data and group communications services, today announced
results for the first quarter ended March 31, 2004. Revenues were $105.4 million
for the quarter, an 18.1% increase from the first quarter of 2003. Net income
from continuing operations grew to $8.7 million in the first quarter of 2004, an
increase of 82.5% from $4.8 million in the comparable prior year period. Diluted
EPS from continuing operations totaled $0.13 in the first quarter of 2004
compared to $0.09 in the first quarter of 2003.
Revenue at Premiere Conferencing grew 23.7% in the first quarter of 2004,
totaling $45.2 million versus $36.6 million in the comparable prior year period.
Revenue at Xpedite grew 14.3% during the first quarter of 2004, totaling $60.2
million versus $52.7 million in the first quarter of 2003.
"Our Company continues to perform well," said Boland T. Jones, Founder,
Chairman and CEO of Ptek Holdings, Inc. "As a leading provider of high-value,
cost-effective solutions for our global enterprise customers, we remain excited
about the opportunities we see in the marketplace."
2004 Accomplishments
-- Hosted nearly 420 million minutes of group meetings and delivered more
than 790 million data communications during the first quarter
-- Introduced Fax2Mail(sm) document management solution and made progress
toward our goal of ending this year with greater than 100,000 paid
subscribers to the service
-- Introduced ReadyConference(R) Plus data collaboration service and made
progress toward our goal of ending this year with at least 25,000
users
-- Increased revenue from transactional and new media deliveries by 32%
during the quarter from the comparable prior year period
-- Increased revenue from Web and Auditorium conferencing services by 84%
during the quarter from the first quarter of 2003
-- Grew international conferencing revenue by more than 80% during the
quarter from the comparable prior year period
-- Repurchased 400,000 shares of Ptek common stock in the open market
-- Closed the acquisition of Resource Communications, Inc. on April 1,
adding to Ptek's presence in the North American SME market for
conferencing services
-- Settled our billing dispute with MCI, subject to any required
bankruptcy court approval
Financial Outlook
The following statements are based on Ptek's current expectations as of
April 28, 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 estimates revenues for 2004 will be in the range of $430
million to $440 million and diluted EPS from continuing operations for the year
will be in the range of $0.56 to $0.58. 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 5:00 Eastern 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)
818-5264 (US & Canada) or (913) 981-4910 (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 8:00 p.m., through
midnight Eastern May 7 and may be accessed by calling (888) 203-1112 (US &
Canada) or (719) 457-0820 (International). The confirmation code is 114497. 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, data and
group communications services for global enterprises. Companies use our audio
and data conferencing solutions to conduct group meetings and presentations over
the phone or Web. We also enable our customers to process and deliver large
quantities of individualized, business critical information, such as electronic
statements and invoices, financial transaction and travel confirmations, and
drug prescriptions, via our global ASP platform. Ptek serves companies in nearly
every business sector, including healthcare, technology, publishing, financial
services, travel and hospitality. Our services 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; our services may be interrupted due to failure
of the platforms and network infrastructure utilized in providing our services;
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 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 MONTHS ENDED MARCH 31, 2004 AND 2003
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended
March 31,
2004 2003
-------- --------
REVENUES $105,354 $ 89,220
OPERATING EXPENSES:
Cost of revenues (exclusive of depreciation
shown separately below) 36,097 30,672
Selling and marketing 26,922 24,264
General and administrative 14,853 13,496
Research and development 2,506 2,004
Depreciation 6,577 5,533
Amortization 1,753 1,999
Equity based compensation 945 584
-------- --------
Total operating expenses 89,653 78,552
-------- --------
OPERATING INCOME 15,701 10,668
-------- --------
OTHER INCOME (EXPENSE):
Interest expense (1,619) (2,809)
Interest income 167 244
Loss on sale of marketable securities (87) -
Other, net 16 281
-------- --------
Total other income (expense) (1,523) (2,284)
-------- --------
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME
TAXES 14,178 8,384
INCOME TAX EXPENSE 5,458 3,605
-------- --------
INCOME FROM CONTINUING OPERATIONS $ 8,720 $ 4,779
======== ========
NET INCOME $ 8,720 $ 4,779
======== ========
BASIC EARNINGS PER SHARE:
Income from continuing operations $ 8,720 $ 4,779
======== ========
Net Income $ 8,720 $ 4,779
======== ========
BASIC WEIGHTED AVERAGE SHARES OUTSTANDING: 56,916 52,711
======== ========
Basic earnings per share:
Continuing operations $ 0.15 $ 0.09
======== ========
Net Income $ 0.15 $ 0.09
======== ========
DILUTED EARNINGS PER SHARE:
Income from continuing operations for purposes of
computing diluted net income per share $ 9,481 $ 4,779
======== ========
Net Income for purposes of computing diluted net
income per share $ 9,481 $ 4,779
======== ========
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING: 73,194 54,871
======== ========
Diluted earnings per share:
Continuing operations $ 0.13 $ 0.09
======== ========
Net Income $ 0.13 $ 0.09
======== ========
PTEK HOLDINGS, INC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2004 AND DECEMBER 31, 2003
(IN THOUSANDS, EXCEPT SHARE DATA)
March 31, December 31,
2004 2003
---------- ----------
(unaudited)
ASSETS
CURRENT ASSETS
Cash and equivalents $ 21,993 $ 23,946
Marketable securities, available for sale - 575
Accounts receivable (less allowances of
$4,789 and $4,451, respectively) 62,633 57,760
Prepaid expenses and other current assets 6,037 6,348
Deferred income taxes, net 20,938 20,938
---------- ----------
Total current assets 111,601 109,567
---------- ----------
PROPERTY AND EQUIPMENT, NET 65,041 63,563
OTHER ASSETS
Goodwill 123,066 123,066
Intangibles, net 23,553 24,553
Deferred income taxes, net 6,297 10,521
Notes receivable - employees 2,013 1,808
Other assets 6,478 6,219
---------- ----------
$ 338,049 $ 339,297
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 37,145 $ 36,621
Accrued taxes 10,044 10,984
Accrued expenses 33,018 33,891
Current maturities of long-term debt 15,000 15,000
Accrued restructuring costs 2,634 4,445
---------- ----------
Total current liabilities 97,841 100,941
---------- ----------
LONG-TERM LIABILITIES
Convertible subordinated notes 85,000 85,000
Long-term debt - 5,000
Accrued expenses 11,850 14,638
---------- ----------
Total long-term liabilities 96,850 104,638
---------- ----------
SHAREHOLDERS' EQUITY
Common stock $0.01 par value; 150,000,000
shares authorized, 57,615,668 and 57,289,895
shares issued in 2004 and 2003 and 57,615,668
and 57,289,895 shares outstanding in 2004 and
2003, respectively 575 572
Unrealized gain on marketable securities,
available for sale - (110)
Additional paid-in capital 603,038 602,452
Unearned restricted share compensation (610) (813)
Note receivable, shareholder (5,423) (5,343)
Cumulative translation adjustment (409) (507)
Accumulated deficit (453,813) (462,533)
---------- ----------
Total shareholders' equity 143,358 133,718
---------- ----------
$ 338,049 $ 339,297
========== ==========
PTEK HOLDINGS, INC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2004 AND 2003
(UNAUDITED, IN THOUSANDS)
Three Months Ended
March 31,
2004 2003
--------- --------
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income 8,720 4,779
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 6,577 5,533
Amortization 1,753 1,999
Amortization of deferred financing costs 213 -
Loss on sale of marketable securities, available
for sale 87 -
Deferred income taxes 3,846 2,266
Payments for restructuring costs (2,081) (290)
Equity based compensation 945 584
Changes in assets and liabilities:
Accounts receivable, net (4,317) (4,841)
Prepaid expenses and other current assets (1,164) (559)
Accounts payable and accrued expenses (5,631) (9,101)
--------- --------
Total adjustments 228 (4,409)
--------- --------
Net cash provided by operating
activities 8,948 370
--------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (5,905) (2,723)
Business acquisitions (1,896) (6,382)
Increase in restricted cash for acquisitions - (5,000)
Sale of marketable securities 667 -
Proceeds from note receivable 800 -
--------- --------
Net cash used in investing activities (6,334) (14,105)
--------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments under borrowing arrangements (5,000) (1,133)
Purchase of treasury stock, at cost (3,493) (627)
Exercise of stock options 3,514 91
--------- --------
Net cash used in financing activities (4,979) (1,669)
--------- --------
Effect of exchange rate changes on cash and
equivalents 412 (585)
--------- --------
NET DECREASE IN CASH AND EQUIVALENTS (1,953) (15,989)
--------- --------
CASH AND EQUIVALENTS, beginning of period $ 23,946 68,777
--------- --------
CASH AND EQUIVALENTS, end of period $ 21,993 $ 52,788
========= ========
PTEK HOLDINGS, INC AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN THOUSANDS)
March 31, December 31,
2004 2003
--------- ---------
NET DEBT TO EQUITY (1)
Current maturities of long-term debt $ 15,000 $ 15,000
Long-term debt - 5,000
Convertible subordinated notes 85,000 85,000
--------- ---------
TOTAL DEBT 100,000 105,000
Cash and cash equivalents 21,993 23,946
--------- ---------
TOTAL CASH 21,993 23,946
----------------------
NET DEBT (TOTAL DEBT LESS CASH)$ 78,007 $ 81,054
--------- ---------
EQUITY$ 143,358 $ 133,718
----------------------
NET DEBT TO EQUITY 0.54 0.61
========= =========
(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