PGi Reports Third Quarter 2010 Results: Revenues $142.3M, Non-GAAP Diluted EPS from Continuing Operations $0.18*
PGi Driving for Growth as a Pure Play Virtual Meetings Company
ATLANTA, October 21, 2010 -
Premiere Global Services, Inc. (NYSE: PGI), a global software and services company that enables real-time, virtual group meetings, today announced results for the third quarter ended September 30, 2010.
Consolidated net revenues totaled $142.3 million in the third quarter of 2010, including $109.5 million from the company’s PGiMeet solutions. In the third quarter of 2010, diluted EPS from continuing operations was $0.06, and non-GAAP diluted EPS from continuing operations was $0.18.*
In the third quarter of 2009, consolidated net revenues totaled $148.0 million, including $111.4 million from the company’s PGiMeet solutions, diluted EPS from continuing operations was ($0.08), and non-GAAP diluted EPS from continuing operations was $0.20.* Results for 2009 are adjusted to reflect the company’s email marketing business as discontinued operations.
“While operating through a challenging global economy, we’ve spent the past year focusing and streamlining our organization to position PGi for growth and improved profitability,” said Boland T. Jones, PGi founder, chairman and CEO. “We remain very excited about our future — with a growing market opportunity, a new suite of proprietary, next generation meetings solutions and a singular focus on becoming the best virtual meetings company in the world.”
Nine Month Results
Consolidated net revenues totaled $433.2 million in the nine months ended September 30, 2010, including $332.9 million from the company’s PGiMeet solutions. In the first nine months of 2010, diluted EPS from continuing operations totaled $0.27, and non-GAAP diluted EPS from continuing operations was $0.56.*
In the nine months ended September 30, 2009, consolidated net revenues totaled $457.0 million, including $346.0 million from the company’s PGiMeet solutions. In the first nine months of 2009, diluted EPS from continuing operations totaled $0.26, and non-GAAP diluted EPS from continuing operations was $0.72.*
Fourth Quarter 2010 Financial Outlook
The following statements are based on PGi’s current expectations. 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.
This afternoon, PGi announced the completed sale of its PGiSend messaging business. In the fourth quarter of 2010, results from the company’s PGiSend business will be included in discontinued operations. (See Appendixes A and B for historical pro forma results from continuing operations, excluding the PGiSend business.)
Based on current trends and foreign currency exchange rates, the company anticipates revenue from continuing operations in the fourth quarter of 2010 will be in the range of $107-$109 million, and non-GAAP diluted EPS from continuing operations will be in the range of $0.09-$0.11*, including marketing and advertising costs associated with the launch of its new virtual meetings solutions.
PGi will host a conference call this afternoon at 5:00 p.m., Eastern Time, 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) 926-7061 (U.S. and Canada) or (913) 981-5518 (International). The conference call will simultaneously be webcast. Please visit www.pgi.com for webcast details and conference call replay information, as well as the webcast archive and the text of the earnings release, including the financial and statistical information to be presented during the call.
* Non-GAAP Financial MeasuresTo supplement the company’s consolidated financial statements presented in accordance with GAAP, we have included the following non-GAAP measures of financial performance: non-GAAP operating income, non-GAAP net income from continuing operations, non-GAAP diluted net income per share (EPS) from continuing operations and organic growth. The company has also included these non-GAAP measures, as well as consolidated net revenues, segment net revenues and certain solutions revenue, on a constant currency basis. 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 table 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.
About Premiere Global Services, Inc. │ PGi
PGi is a global software and services company that enables real-time, virtual meetings. For almost 20 years, we have innovated technologies to empower people to connect, collaborate and come together in more enjoyable and productive ways. Every month, we bring together over 15 million people in nearly 4 million virtual meetings. Headquartered in Atlanta, PGi has a presence in 24 countries worldwide and an established base of greater than 30,000 customers, including 75% of the Fortune 100. For more information, visit us at www.pgi.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, Inc.’s forward-looking statements, including, but not limited to, the following factors: competitive pressures, including pricing pressures; technological changes; the development of alternatives to our services; general domestic and international economic, business or political conditions; risks associated with challenging global economic conditions or a prolonged recession, including customer consolidations, restructuring, bankruptcies or payment defaults; market acceptance of our new services and enhancements, including iMeet®; our ability to complete acquisitions and successfully integrate acquired operations; concerns regarding the security of sending information over the Internet and public networks; our ability to upgrade our equipment or increase our network capacity; service interruptions; our dependence on telecommunications supply agreements; increased financial leverage; our dependence on our subsidiaries for cash flow; future write-downs of goodwill or other intangible assets; assessments of income, sales and other taxes for which we have not accrued; our ability to attract and retain key personnel; our ability to protect our proprietary technology and intellectual property rights; our ability to successfully manage the impact of the divestiture of our PGiSend business, including any financial impact from the loss of PGiSend revenue or earnings; possible adverse results of pending or future litigation or infringement claims; federal, state or international legislative or regulatory changes, including further government regulations applicable to traditional telecommunications service providers; risks associated with international operations and fluctuations in currency exchange rates; changes in and the successful execution of restructuring and cost reduction initiatives and the market reaction thereto and other factors described from time to time in our press releases, reports and other filings with the SEC, including but not limited to the “Risk Factors” sections of our Annual Report on Form 10-K for the year ended December 31, 2009 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2010. All forward-looking statements attributable to us or a person acting on our behalf are expressly qualified in their entirety by this cautionary statement.