EXHIBIT 99.1
Premiere Global Services Reports Q1 Results: Revenues $127.3M up 21%;
Net Income $13.1M up 50%; Diluted EPS $0.18 up 41%;
Company Raises 2005 Financial Outlook
ATLANTA--(BUSINESS WIRE)--April 21, 2005--Premiere Global Services, Inc.
(NYSE: PGI), a global outsource provider of business communications services and
business process solutions, today announced results for the first quarter ended
March 31, 2005. Revenues were $127.3 million for the quarter, a 20.8% increase
from $105.4 million in the first quarter of 2004. Operating income grew 42.7% in
the first quarter of 2005, totaling $22.4 million versus $15.7 million in the
comparable prior year period. Net income totaled $13.1 million in the quarter, a
50.4% increase from $8.7 million in the first quarter of 2004. Diluted EPS was
$0.18 in the first quarter of 2005, up 41.0% compared to $0.13 in the first
quarter of 2004.
"I am proud to report another quarter of solid operational and financial
performance," said Boland T. Jones, Founder, Chairman and CEO of Premiere Global
Services, Inc. "The momentum in our current business is growing, and we are
continuing to evolve into a business process-centric company providing higher
value to our customers with our communication technologies-based applications."
First Quarter 2005 Accomplishments
-- Increased Conferencing & Collaboration revenue by 37.1% to $62.0
million
-- Grew Data Communications revenue by 8.5% to $65.3 million
-- Grew Web-based collaboration revenue by 107.8%
-- Increased transactional and new media data communications revenue by
30.5%
-- Generated $20.3 million of cash flow from operating activities, up
126.4%
-- Repurchased 635,000 shares of our common stock in the open market
-- Expanded bank line of credit borrowing limit to $180 million
Financial Outlook
The following statements are based on Premiere Global Services' current
expectations as of April 21, 2005. 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.
Based on solid year-to-date performance and a delay in the expected
transition of revenue from its largest customer, the Company has raised its 2005
financial outlook. Revenues in 2005 are expected to be in the range of $510 to
$525 million and diluted EPS in 2005 is expected to be in the range of $0.70 to
$0.73. The Company plans to provide additional financial guidance on its
earnings call this afternoon at 5:00 Eastern.
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 5-10 minutes prior to the scheduled start time: (800)
289-0569 (US & Canada) or (913) 981-5542 (International). The conference call
will be simultaneously broadcast over the Internet via SoundCast(R), a Premiere
Global service, and can be found at http://www.premiereglobal.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 April 29 and may be accessed by calling (888) 203-1112 (US &
Canada) or (719) 457-0820 (International). The confirmation code is 1214561. The
Webcast of this call will be archived on the Company's Website at
http://www.premiereglobal.com.
About Premiere Global Services, Inc.
Premiere Global Services, Inc. (formerly Ptek Holdings, Inc.) provides
business communications services and business process solutions that enable
enterprise customers to automate and simplify components of their critical
business processes and to communicate more effectively with their constituents.
We offer data management and delivery solutions and conferencing and
collaboration services on an outsource-basis, hosted on our global proprietary
platforms. Customers apply our communication technologies-based solutions to a
number of business processes, such as receivables collections, continuing
education, alerts and notifications, investor calls, statement and invoice
delivery, international collaboration, document automation, and other
applications, in order to increase efficiency, to improve productivity and to
raise customer satisfaction levels.
With 2,230 employees in 19 countries around the world, Premiere Global
Services(SM) has an established customer base of approximately 54,000 corporate
accounts, including a majority of the Fortune 500. Our corporate headquarters is
located at 3399 Peachtree Road NE, Suite 700, Atlanta, GA 30326. 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' forward-looking statements,
including, but not limited to, the following factors: competitive pressures,
including pricing pressures; technological change; the development of
alternatives to our services; market acceptance of our new services and
enhancements; integration of acquired companies; service interruptions;
increased financial leverage; our dependence on our subsidiaries for cash flow;
possible adverse results of pending or future litigation or infringement claims;
legislative or regulatory changes; general domestic and international economic,
business or political conditions; 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, 2004. 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
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2005 AND 2004
(UNAUDITED, IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended
March 31,
2005 2004
----------- -----------
REVENUES $ 127,264 $ 105,354
OPERATING EXPENSES:
Cost of revenues (exclusive of
depreciation shown separately below) 45,824 39,514
Selling and marketing 32,436 26,922
General and administrative 12,011 11,436
Research and development 2,566 2,506
Depreciation 6,552 6,577
Amortization 3,086 1,753
Restructuring costs 415 -
Equity based compensation 1,963 945
----------- -----------
Total operating expenses 104,853 89,653
OPERATING INCOME 22,411 15,701
----------- -----------
OTHER (EXPENSE) INCOME:
Interest expense (982) (1,619)
Interest income 312 167
Loss on sale of marketable securities (116) (87)
Other, net 93 16
----------- -----------
Total other (expense) income (693) (1,523)
----------- -----------
INCOME FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES 21,718 14,178
INCOME TAX EXPENSE 8,599 5,458
----------- -----------
INCOME FROM CONTINUING OPERATIONS $ 13,119 $ 8,720
=========== ===========
NET INCOME $ 13,119 $ 8,720
=========== ===========
BASIC EARNINGS PER SHARE:
Income from continuing operations $ 13,119 $ 8,720
=========== ===========
Net income $ 13,119 $ 8,720
=========== ===========
BASIC WEIGHTED AVERAGE SHARES
OUTSTANDING: 70,455 56,916
=========== ===========
Basic earnings per share:
Continuing operations $ 0.19 $ 0.15
=========== ===========
Net income $ 0.19 $ 0.15
=========== ===========
DILUTED EARNINGS PER SHARE:
Income from continuing operations for
purposes of computing diluted net
income per share $ 13,119 $ 9,481
----------- -----------
Net income for purposes of computing
diluted net income per share $ 13,119 $ 9,481
----------- -----------
DILUTED WEIGHTED AVERAGE SHARES
OUTSTANDING: 71,804 73,194
=========== ===========
Diluted earnings per share:
Continuing operations $ 0.18 $ 0.13
=========== ===========
Net income $ 0.18 $ 0.13
=========== ===========
PREMIERE GLOBAL SERVICES, INC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2005 AND DECEMBER 31, 2004
(IN THOUSANDS, EXCEPT SHARE DATA)
March 31, December 31,
2005 2004
------------- ------------
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and equivalents $ 23,044 $ 25,882
Marketable securities, available for
sale - 576
Accounts receivable (less allowances
of $5,694 and $5,706, respectively) 85,146 72,055
Prepaid expenses and other current
assets 5,967 5,148
Deferred income taxes, net 13,651 17,706
----------- -----------
Total current assets 127,808 121,367
PROPERTY AND EQUIPMENT, NET 72,901 74,050
OTHER ASSETS
Goodwill 230,447 192,147
Intangibles, net of amortization 43,342 40,590
Deferred income taxes, net 3,461 3,461
Other assets 4,274 3,861
----------- -----------
$ 482,233 $ 435,476
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 41,949 $ 37,337
Income taxes payable 8,924 8,968
Accrued taxes 6,651 6,700
Accrued expenses 38,744 40,192
Current maturities of long-term debt
and capital lease obligations 272 37
Accrued restructuring costs 1,378 1,071
----------- -----------
Total current liabilities 97,918 94,305
LONG-TERM LIABILITIES
Long-term debt and capital lease
obligations 105,508 68,147
Accrued expenses 6,074 6,094
----------- -----------
Total long term liabilities 111,582 74,241
SHAREHOLDERS' EQUITY
Common stock $0.01 par value; 150,000,000
shares authorized, 70,927,758 and
71,307,577 shares issued and outstanding
at March 31, 2005 and December 31, 2004,
respectively 709 713
Unrealized gain on marketable securities - 6
Additional paid-in capital 687,840 694,284
Unearned restricted stock compensation (4,248) (4,187)
Note receivable, shareholder (5,747) (5,662)
Cumulative translation adjustment 1,713 2,429
Accumulated deficit (407,534) (420,653)
----------- -----------
Total shareholders' equity 272,733 266,930
----------- -----------
$ 482,233 $ 435,476
=========== ===========
PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2005 AND 2004
(UNAUDITED, IN THOUSANDS)
Three Months Ended
March 31,
2005 2004
----------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income 13,119 8,720
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation 6,552 6,577
Amortization 3,086 1,753
Amortization of deferred financing costs 114 213
Loss on sale of marketable securities,
available for sale 116 87
Deferred income taxes 4,059 3,846
Restructuring costs, net 138 (2,081)
Payments for discontinued operations (268) (457)
Equity based compensation 1,963 945
Gain on disposal of assets (45) -
Changes in assets and liabilities, net of
effect of acquisitions:
Accounts receivable, net (10,207) (4,317)
Prepaid expenses and other (1,296) (1,164)
Accounts payable and accrued
expenses 2,930 (5,174)
---------- ----------
Total adjustments 7,142 228
-----------------------
Net cash provided by operating
activities 20,261 8,948
-----------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (7,000) (5,905)
Business acquisitions (45,615) (1,896)
Sale of marketable securities 755 667
Purchase of marketable securities (306) -
Proceeds received on note receivable - 800
-----------------------
Net cash used in investing
activities (52,166) (6,334)
-----------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal proceeds (payments) under
borrowing arrangements 36,755 (5,000)
Purchase of treasury stock, at cost (10,156) (3,493)
Exercise of stock options 2,674 3,514
-----------------------
Net cash provided by (used in)
financing activities 29,273 (4,979)
-----------------------
Effect of exchange rate changes on cash and
equivalents (206) 412
---------- ----------
NET DECREASE IN CASH AND EQUIVALENTS (2,838) (1,953)
---------- ----------
CASH AND EQUIVALENTS, beginning of period $ 25,882 23,946
---------- ----------
CASH AND EQUIVALENTS, end of period $ 23,044 $ 21,993
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CONTACT: Premiere Global Services, Inc., Atlanta
Sean O'Brien, 404-262-8462