Exhibit 99.1
Ptek Reports $111.6 Million in Revenues; $0.15 Normalized Diluted EPS
from Continuing Operations; Company Raises 2004 Financial Outlook
ATLANTA--(BUSINESS WIRE)--July 28, 2004--Ptek Holdings, Inc.
(NASDAQ: PTEK)(www.ptek.com), a leading provider of innovative
business, data and group communications services, today announced
results for the second quarter ended June 30, 2004. Revenues were
$111.6 million for the quarter, a 17.6% increase from $94.9 million in
the second quarter of 2003. Operating income grew 50.7% in the second
quarter of 2004, totaling $17.6 million versus $11.6 million in the
comparable prior year period. Excluding a previously announced $17.0
million non-recurring charge for the early retirement of the Company's
convertible notes due 2008, normalized income from continuing
operations was $11.0 million and normalized diluted EPS from
continuing operations was $0.15 in the second quarter of 2004 (see
table attached for calculation of these non-GAAP financial measures).
Including the charge, GAAP income from continuing operations was
break-even in the second quarter, and GAAP diluted EPS from continuing
operations was $0.01.
Revenue at Premiere Conferencing grew 25.0% in the second quarter,
totaling $49.7 million versus $39.7 million in the comparable prior
year period. Revenue at Xpedite grew 12.2% during the second quarter
of 2004, totaling $62.0 million versus $55.2 million in the second
quarter of 2003.
"Providing innovative business communications solutions that are
vital to business processes remains our priority," said Boland T.
Jones, Founder, Chairman and CEO of Ptek Holdings, Inc.
Revenues for the six months ended June 30, 2004 were $216.9
million compared to $184.1 million in the six months ended June 30,
2003. Excluding the non-recurring charge for the early retirement of
the Company's convertible notes due 2008, income from continuing
operations was $20.5 million and diluted EPS from continuing
operations was $0.29 for the first six months of 2004. Including the
charge, GAAP income from continuing operations for the six months
ended June, 30 2004 totaled $8.7 million and GAAP diluted EPS from
continuing operations was $0.14.
Recent Accomplishments
-- Hosted 456 million minutes of group meetings during the second
quarter
-- Delivered 839 million data communications during the quarter
-- Increased revenue from transactional and new media data
communications by 49% during the quarter from the comparable
prior year period
-- Increased revenue from Web-based conferencing services by 96%
during the quarter from the second quarter of 2003
-- Grew international conferencing revenue by more than 45%
during the quarter from the comparable prior year period
-- Lowered DSOs to 52 days in the quarter, down 2 days from March
31, 2004
-- Repurchased an additional 100,000 shares of Ptek common stock
in the open market
-- Secured a new $120 million revolving credit facility with Bank
of America, N. A.
-- Converted the entire $85 million principal amount of
convertible notes due August of 2008
-- Repaid the remaining $15 million principal amount of
convertible notes due 2004 at maturity on July 1
Financial Outlook
The following statements are based on Ptek's current expectations
as of July 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
$440 million to $450 million and diluted EPS from continuing
operations for the year, excluding effects from the early redemption
of the Company's convertible notes due 2008, will be in the range of
$0.58 to $0.60. Average diluted shares outstanding in 2004 are
estimated to be approximately 73 to 74 million, and the Company
assumes an effective tax rate for the year between 38% and 39%.
Other News
Ptek Holdings announced today that it has confirmed Michael
Havener as Chief Financial Officer. Mr. Havener, a Certified Public
Accountant, was appointed CFO on an interim basis in March 2004 and
has served in various financial capacities at the Company since 1997.
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) 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 8:00 p.m.
Eastern, through midnight Eastern August 6 and may be accessed by
calling (888) 203-1112 (US & Canada) or (719) 457-0820
(International). The confirmation code is 317511. 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, but not
limited to, the following factors: technological change; the
development of alternatives to our services; our ability to manage our
growth; integration of acquired companies; possible adverse results of
pending or future litigation or infringement claims; service
interruptions; competitive pressures, including pricing pressures;
general domestic and international economic, business or political
conditions; legislative or regulatory changes; increased financial
leverage; our dependence on our subsidiaries for cash flow; and other
factors described from time to time in our press releases, reports and
other filings with the SEC, including but not limited the "Risk
Factors Affecting Future Performance" section of our Annual Report on
Form 10-K for the year ended December 31, 2003. 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 SIX MONTHS ENDED JUNE 30, 2004 AND 2003
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended Six Months ended
------------------------- -------------------------
June 30, June 30, June 30, June 30,
2004 2003 2004 2003
------------ ------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
REVENUES $111,553 $94,851 $216,907 $184,071
OPERATING EXPENSES:
Cost of revenues
(exclusive of
depreciation shown
separately below) 36,746 32,934 72,616 63,606
Selling and
marketing 28,695 26,845 55,616 51,109
General and
administrative 15,990 13,548 31,070 27,044
Research and
development 2,925 2,178 5,431 4,182
Depreciation 6,257 5,740 12,834 11,273
Amortization 2,058 1,416 3,812 3,415
Equity based
compensation 1,332 541 2,278 1,125
------------ ------------ ------------ ------------
Total operating
expenses 94,003 83,202 183,657 161,754
------------ ------------ ------------ ------------
OPERATING INCOME 17,550 11,649 33,250 22,317
------------ ------------ ------------ ------------
OTHER INCOME
(EXPENSE):
Interest expense (1,530) (2,453) (3,150) (5,262)
Interest income 181 197 348 441
Debt conversion
costs (17,027) - (17,027) -
Gain (Loss) on sale
of marketable
securities - 501 (87) 501
Gain on repurchase
of bonds - 1,397 - 1,397
Other, net 813 126 829 407
------------ ------------ ------------ ------------
Total other income
(expense) (17,563) (232) (19,087) (2,516)
------------ ------------ ------------ ------------
(LOSS) INCOME FROM
CONTINUING
OPERATIONS BEFORE
INCOME TAXES (13) 11,417 14,163 19,801
INCOME TAX EXPENSE 27 4,663 5,484 8,268
------------ ------------ ------------ ------------
(LOSS) INCOME FROM
CONTINUING
OPERATIONS $(40) $6,754 $8,679 $11,533
============ ============ ============ ============
DISCONTINUED
OPERATIONS:
Gain (loss) from
operations from
Voicecom 1,956 (132) 1,956 (132)
Income tax expense
(benefit) 761 (51) 761 (51)
------------ ------------ ------------ ------------
Gain (Loss) on
discontinued
operations 1,195 (81) 1,195 (81)
------------ ------------ ------------ ------------
NET INCOME $1,155 $6,673 $9,874 $11,452
============ ============ ============ ============
BASIC EARNINGS PER
SHARE:
(Loss) Income from
continuing
operations $(40) $6,754 $8,679 $11,533
Net Income $1,155 $6,673 $9,874 $11,452
BASIC WEIGHTED
AVERAGE SHARES
OUTSTANDING: 59,426 53,168 57,776 52,591
============ ============ ============ ============
Basic earnings per
share:
Continuing
operations $(0.00) $0.13 $0.15 $0.22
Discontinued
operations $0.02 $(0.00) $0.02 $(0.00)
------------ ------------ ------------ ------------
Net Income $0.02 $0.13 $0.17 $0.22
============ ============ ============ ============
DILUTED EARNINGS
PER SHARE:
Income from
continuing
operations for
purposes of
computing diluted
net income per
share $582 $6,754 $10,064 $11,533
Net Income for
purposes of
computing diluted
net income per
share $1,778 $6,673 $11,259 $11,452
DILUTED WEIGHTED
AVERAGE SHARES
OUTSTANDING: 72,278 55,817 71,756 54,954
============ ============ ============ ============
Diluted earnings
per share:
Continuing
operations $0.01 $0.12 $0.14 $0.21
Discontinued
operations $0.01 $(0.00) $0.02 $(0.00)
------------ ------------ ------------ ------------
Net Income $0.02 $0.12 $0.16 $0.21
============ ============ ============ ============
PTEK HOLDINGS, INC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2004 AND DECEMBER 31, 2003
(IN THOUSANDS, EXCEPT SHARE DATA)
June 30, Dec. 31,
2004 2003
----------- ----------
(unaudited)
ASSETS
CURRENT ASSETS
Cash and equivalents $18,877 $23,946
Marketable securities, available for sale 231 575
Accounts receivable (less allowances of
$4,795 and $4,451, respectively) 63,979 57,760
Prepaid expenses and other 7,671 6,348
Deferred income taxes, net 20,177 20,938
----------- ----------
Total current assets 110,935 109,567
PROPERTY AND EQUIPMENT, NET 64,592 63,563
OTHER ASSETS
Goodwill 141,868 123,066
Intangibles, net 28,735 24,553
Deferred income taxes, net 8,077 10,521
Notes receivable - employees 2,156 1,808
Other assets 3,849 6,219
----------- ----------
$360,212 $339,297
=========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $38,320 $36,621
Accrued taxes 9,624 10,984
Accrued expenses 33,192 33,891
Current maturities of long term debt 15,000 15,000
Accrued restructuring costs 1,742 4,445
----------- ----------
Total current liabilities 97,878 100,941
----------- ----------
LONG-TERM LIABILITIES
Convertible subordinated notes - 85,000
Long-term debt 20,900 5,000
Other accrued expenses 9,778 14,638
----------- ----------
Total long term liabilities 30,678 104,638
----------- ----------
SHAREHOLDERS' EQUITY
Common stock $0.01 par value; 150,000,000 shares
authorized, 71,044,625 and 57,289,895 shares
issued in 2004 and 2003 and 71,044,625 and
57,289,895 shares outstanding in 2004 and 2003,
respectively 709 572
Unrealized gain on marketable securities (8) (110)
Additional paid-in capital 689,661 602,452
Unearned restricted stock compensation (406) (813)
Note receivable, shareholder (5,503) (5,343)
Cumulative translation adjustment (138) (507)
Accumulated deficit (452,659) (462,533)
----------- ----------
Total shareholders' equity 231,656 133,718
----------- ----------
$360,212 $339,297
=========== ==========
PTEK HOLDINGS, INC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2004 AND 2003
(UNAUDITED, IN THOUSANDS)
2004 2003
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income 9,874 11,452
Adjustments to reconcile net income to net cash provided by
operating activities:
(Gain) loss on discontinued operations (1,195) 81
Debt conversion costs 17,027 -
Depreciation 12,834 11,273
Amortization 3,812 3,415
Amortization of deferred financing costs 434 -
Loss (gain) on sale of marketable securities,
available for sale 87 (501)
Gain on repurchase of bonds - (1,397)
Deferred income taxes 1,679 5,429
Gain on note receivable (423) -
Restructuring costs, net (2,974) (549)
Payments for discontinued operations (1,142) (293)
Equity based compensation 2,278 1,125
Changes in assets and liabilities:
Accounts receivable, net (3,621) (4,784)
Prepaid expenses and other current assets (3,024) 3,280
Accounts payable and accrued expenses (5,011) (8,705)
-------- --------
Total adjustments 20,761 8,374
-------- --------
Total cash provided by operating activities 30,635 19,826
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (12,119) (7,124)
Business acquisitions (28,552) (6,782)
Increase in restricted cash for acquisitions - (4,688)
Sale of marketable securities 422 541
Proceeds from note receivable 1,600 -
-------- --------
Net cash used in investing activities (38,649) (18,053)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal proceeds (payments) under borrowing
arrangements 15,900 (40,093)
Make whole interest payment - convertible notes (16,255) -
Purchase of treasury stock, at cost (4,495) (627)
Exercise of stock options 8,218 363
-------- --------
Total cash provided by (used in) financing
activities 3,368 (40,357)
-------- --------
Effect of exchange rate changes on cash and
equivalents (423) 260
-------- --------
NET DECREASE IN CASH AND EQUIVALENTS (5,069) (38,324)
-------- --------
CASH AND EQUIVALENTS, beginning of period $23,946 $68,777
-------- --------
CASH AND EQUIVALENTS, end of period $18,877 $30,453
======== ========
PTEK HOLDINGS, INC AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Six
Months Months
Ended Ended
June 30, June 30,
2004 2004
---------- ---------
Normalized Income from continuing operations (1)
Income from continuing operations for purposes of
computing diluted income per share $582 $10,064
Debt conversion costs (tax effected at 38.9%) 10,403 10,403
---------- ---------
Normalized income from continuing operations 10,985 20,467
---------- ---------
Normalized Diluted EPS (1)
From continuing operations $0.01 $0.14
Debt conversion costs (tax effected at 38.9%) $0.14 $0.15
---------- ---------
Normalized income from continuing operations $0.15 $0.29
(1) Normalized income from continuing operations and normalized
diluted EPS are non-GAAP financial measures. Management believes
that these measures provide useful information regarding underlying
trends in our continuing operations by excluding non-recurring items
that are unrelated to our ongoing operations.
CONTACT: Ptek Holdings, Inc., Atlanta
Investor Calls
Sean O'Brien, 404-262-8462