Premiere Global Reports Fourth Quarter and 2007 Results: Revenues up 15% to $146.2M, Pro Forma Diluted EPS up 35% to $0.23* in Q4
ATLANTA, GA , FEBRUARY 21, 2008 -
Premiere Global Services, Inc. (NYSE: PGI), a global provider of on-demand business process improvement solutions, today announced results for the fourth quarter and year ended December 31, 2007.
Revenues increased 15.1% to $146.2 million in the fourth quarter of 2007, compared to $127.1 million in the fourth quarter of 2006. In the fourth quarter of 2007, operating income totaled $18.2 million, net income totaled $9.8 million and diluted EPS totaled $0.16, compared to $6.4 million, $5.1 million and $0.08, respectively, in the fourth quarter of 2006.
In the fourth quarter of 2007, pro forma diluted EPS totaled $0.23*, excluding equity-based compensation of $2.7 million, amortization of $4.4 million and other insignificant items.
“Our continuing solid performance, we believe, is being driven by a growing use of our applied communication technologies by enterprises to improve their business processes,” said Boland T. Jones, Founder, Chairman and CEO of Premiere Global Services, Inc. “The momentum in our business tells us that our PGi Communications Operating System is meeting a large and growing need in the market. The enhanced value we provide with our broad suite of applications continues to be a real advantage when we compete with single product vendors.”
Revenues in 2007 increased 12.7% to $559.7 million, compared to $496.5 million in 2006. In 2007, operating income totaled $61.5 million, net income totaled $33.4 million and diluted EPS totaled $0.52, compared to $46.4 million, $25.5 million and $0.37, respectively, in 2006. In 2007, pro forma diluted EPS totaled $0.86, an increase of 26.5% compared to $0.68 in 2006.*
Revenue from Conferencing & Collaboration Solutions grew 28.7% to $97.2 million in the fourth quarter of 2007 compared to $75.5 million in the comparable prior year quarter. Revenue from legacy broadcast fax services totaled $18.0 million in the fourth quarter of 2007, a decline of 10.9% from $20.2 million in the fourth quarter of 2006.
In the fourth quarter of 2007, revenue in the Company’s reportable segments increased from the comparable prior year quarter as follows:
- North America grew 11.8% to $90.9 million, versus $81.3 million;
- Europe increased 22.6% to $28.6 million, versus $23.3 million and;
- Asia Pacific grew 19.2% to $26.8 million, versus $22.5 million.
The following statements are based on Premiere Global Services’ current expectations as of February 21, 2008. These statements contain forward-looking statements and Company estimates, 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 anticipates revenue growth in 2008 will be greater than 10%. As a result of expected efficiencies from the Company’s operating initiatives, gross margins are expected to increase from 2007 levels in 2008. Diluted EPS is projected to grow at least 20% in 2008 compared to 2007. Capital expenditures are expected to decline as a percentage of revenues from 2007 levels.
* To supplement the Company’s consolidated financial statements presented in accordance with GAAP, we have included the following non-GAAP measures of financial performance: pro forma operating income, pro forma net income and pro forma diluted EPS. Management uses these measures internally as a means of analyzing the Company’s current and future financial performance and identifying trends in our financial condition and results of operations. We have provided this information to investors to assist in meaningful comparisons of past, present and future operating results and to assist in highlighting the results of ongoing core operations. Please see the tables attached for calculation of these non-GAAP financial measures and for reconciliation to the most directly comparable GAAP measures. These non-GAAP financial measures may differ materially from comparable or similarly titled measures provided by other companies and should be considered in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP.
The Company will hold a conference call at 5:00 p.m. 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) 730-9234 (US & Canada) or (719) 457-2086 (International). The conference call will be simultaneously broadcast over the Internet via SoundCast®, a Premiere Global service, and can be accessed at PremiereGlobal.com/IR. You may also follow this link for details on the Internet replay, podcast 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 tonight through midnight Eastern February 29, 2008, and can be accessed by calling (888) 203-1112 (US & Canada) or (719) 457-0820 (International). The confirmation code is 4419425. The Webcast of this call will be archived on the Company’s Website at PremiereGlobal.com/IR.
About Premiere Global Services, Inc.
Premiere Global Services, Inc., formerly Ptek Holdings, Inc., is a leading global provider of innovative business communications and data services. Customers use our ASP platform to conduct traditional and VoIP-based collaboration sessions and to process and deliver large quantities of individualized, business critical information. Premiere Global offers outsourced document delivery, data capture, alerts/notifications and campaign management solutions that automate customers' business processes and improve efficiency levels enterprise-wide. We also offer a full suite of conferencing solutions, including automated, operator-assisted and Web collaboration services that enable customers to communicate real-time via our advanced, open standards global conferencing platform.
Premiere Global serves more than 46,000 corporate accounts in nearly every business sector, throughout 18 countries worldwide. Our corporate headquarters is located at 3399 Peachtree Road NE, Suite 700, Atlanta, GA 30326. Additional information can be found at www.pgi.com.
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Forward-looking and cautionary statements
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; continued weakness in our legacy broadcast fax business; foreign currency exchange rates; possible adverse results of pending or future litigation or infringement claims; federal or state 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" sections of our Annual Report on Form 10-K for the year ended December 31, 2006 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2007 and June 30, 2007. All forward-looking statements attributable to us or a person acting on our behalf are expressly qualified in their entirety by this cautionary statement.