Ptek Holdings Reports $341.3 Million Revenue, $71.5 Million Adjusted EBITDA And $.26 Diluted EPS From Continuing Operations For 2002
Company Ends Year with $69.4 Million in Cash and Marketable Securities - 40% Increase Over 2001
ATLANTA, GA, February 25, 2003 -
Ptek Holdings, Inc. (NASDAQ: PTEK) today announced that its revenue from continuing operations for the year ended December 31, 2002 was $341.3 million compared to $330.4 million in 2001. Diluted earnings per share from continuing operations for 2002 were $.26 compared to a diluted loss of $2.61 (exclusive of FAS 142 goodwill amortization) per share in 2001. Adjusted EBITDA from continuing operations (defined as operating income or loss before depreciation, amortization, restructuring costs, asset impairments, equity based compensation, and net legal settlements) for 2002 was $71.5 million versus $60.3 million in 2001, a 19% increase. A schedule reconciling adjusted EBITDA to net income is attached. Net income per diluted share for 2002, including discontinued operations, was $.03 compared to a diluted loss of $3.50 (exclusive of FAS 142 goodwill amortization) per share in 2001.
Cash and marketable securities on December 31, 2002 increased 40% to $69.4 million compared to $49.5 million on December 31, 2001.
In the fourth quarter of 2002, revenue from continuing operations totaled $84.5 million as compared to $83.0 million in the fourth quarter of 2001, and diluted earnings per share from continuing operations were $.12 compared to a net loss per share of $2.20 (exclusive of FAS 142 goodwill amortization) in the fourth quarter of 2001. Adjusted EBITDA from continuing operations for the fourth quarter of 2002 was $17.0 million, as compared to $14.0 million in the fourth quarter of 2001. Net income per diluted share for the fourth quarter of 2002, including discontinued operations, was $.12 compared to a diluted loss of $2.80 (exclusive of FAS 142 goodwill amortization) per share in the fourth quarter of 2001.
Ptek's accomplishments in the fourth quarter of 2002 included:
- Xpedite achieved record growth in both volume and revenue for its voiceREACH(SM) service, with revenue up 95% over the third quarter of 2002.
- Continued to grow minute volume at Premiere Conferencing, increasing by more than 4% quarter over quarter.
- Improved cash and marketable securities from the third quarter of 2002 by $13.9 million, exiting the fourth quarter of 2002 with $69.4 million.
- Repurchased 1,675,500 shares of the company's stock during the fourth quarter of 2002, increasing the number of shares acquired since announcing the repurchase program in June of 2000 to a total of 4,095,800 shares.
Ptek's accomplishments in 2002 included:
- New services revenue (data collaboration and automated conferencing, messageREACH® and voiceREACH(SM)) grew 40% from $88 million in 2001 to $123 million in 2002.
- Improved working capital by $48.0 million.
- Improved Net Days Sales Outstanding during the year from 67 days to 57 days.
- Improved ratio of net debt to adjusted EBITDA (ttm) by 30%, from 2.3x to 1.6x.
- Increased the number of shares held by institutions to 40% of total shares outstanding at the end of 2002, compared to 24% at the end of 2001.
"We continue to make significant gains in our company's performance," said Boland T. Jones, Founder, Chairman and CEO of PTEK Holdings. "In 2002 we accomplished our goals in terms of growing revenue in our new services, generating positive earnings per share, greatly improving our balance sheet, and significantly increasing the number of shares held by institutional investors. Even in these trying times we are starting to see results from our efforts in terms of greater client penetration with additional services, and the successful solicitation of new customers--both among Fortune 1000 companies and in the small to mid size market. At this time, we expect to see revenue increase in Q1 over Q4."
Operating Units' Performance
Premiere Conferencing (www.premconf.com)
(In Thousands Except Per Share Amounts)
Premiere Conferencing's revenue for 2002 grew 20%, reporting $138.5 million compared to $115.2 million for 2001. Adjusted EBITDA increased 41% for 2002, at $40.4 million versus $28.6 million for 2001.
Premiere Conferencing minutes grew 51% from 626 million minutes in 2001 to 948 million minutes in 2002.
Premiere Conferencing continued to expand its corporate customer base in the fourth quarter of 2002 by adding more than 853 new domestic customers over the preceding quarter, including Aurora Foods, Flagstar Bank, Morris Communications, PETCO, Sysco Corporation and Tiffany & Co. The business unit also added significant new international customers, including Volkswagen and Sealed Air in Germany, Microsoft Europe and Monoprix in France, and ABN Amro and Avery Dennison in the United Kingdom, as well as General Motors in Australia, Toyota in Japan and Dell Computer in Hong Kong.
(In Thousands Except Per Share Amounts)
Xpedite delivered more than 590 million messages in the fourth quarter of 2002, and more than 2.2 billion messages for the entire year, an increase of 11% over 2001. messageREACH® volume for the fourth quarter of 2002 was up 67% over the fourth quarter of 2001, and voiceREACH volume increased 447% in the fourth quarter of 2002 versus the fourth quarter of 2001. New services constituted 16% of total revenue in the fourth quarter, up from 11% of total revenue in Q4 2001.
During the fourth quarter of 2002, Xpedite added over 1,000 international customer accounts, including Ingram Micro in France, HSBC Securities, Salomon Smith Barney in Singapore, and NuSkin and GE Plastics in Korea. Xpedite continued to add domestic customers in the quarter including Boston Market, Domino's, Citizens Bank, and the Atlanta Falcons NFL football team.
Revised Financial Guidance
The following statements are based on Ptek's current expectations as of February 25, 2003. 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 Annual Report on Form 10-K for the fiscal year ended December 31, 2001 and in subsequent filings filed by the company with the Securities and Exchange Commission.
Based on the Company's most recent performance, Ptek is revising its guidance for 2003 for continuing operations as follows, which the company will discuss during the conference call (see Notice below).
(a) EBITDA is net income (loss) before interest, taxes, depreciation and amortization, and will no longer include the adjustments set forth in the attached schedule. 2002 non-adjusted EBITDA was $58.2M.
(b) Assumes effective income tax rate of 40% and total diluted share count of 55.9 million.
Notice: The Company will hold a conference call to discuss this release at 5:00 PM EST on February 25, 2003. Participants who would like to listen to the call via live Web cast should go to www.ptek.com/press/index.cfm. For a replay of the conference call, call 888-203-1112 (U.S. and Canada) or 719-457-0820 (International). The confirmation code is 599245.
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® 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.
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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 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 effects on our financial condition if we are unable to retain IBM as a customer at the levels currently forecasted; 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.