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PGi Reports Fourth Quarter and Fiscal Year 2012 Results: Q4 Organic Revenues Grew Over 6%* to $125.8M, Non-GAAP Diluted EPS from



 PGi Reports Fourth Quarter and Fiscal Year 2012 Results: Q4 Organic Revenues
  Grew Over 6%* to $125.8M, Non-GAAP Diluted EPS from Continuing Operations
                                    $0.18*

Company Sees Solid Organic Growth and Higher Profitability in 2013

PR Newswire

ATLANTA, Feb. 13, 2013

ATLANTA, Feb. 13, 2013 /PRNewswire/ -- Premiere Global Services, Inc. (NYSE:
PGI), a global leader in virtual meetings for over 20 years, today announced
results for the fourth quarter and fiscal year ended December 31, 2012.

In the fourth quarter of 2012, net revenues increased nearly 6% to $125.8
million, compared to $118.7 million in the fourth quarter of 2011.  Diluted
EPS from continuing operations was $0.20 in the fourth quarter of 2012,
compared to $0.07 in the fourth quarter of 2011.  Non-GAAP diluted EPS from
continuing operations was $0.18* in the fourth quarter of 2012, compared to
$0.18* in the fourth quarter of 2011.  

"We are pleased with our solid financial performance in 2012, as we continued
to grow across all regions and product lines and to generate operating
leverage in our business," said Boland T. Jones, PGi founder, chairman and
CEO. "Last year, we also made meaningful strategic progress in transitioning
PGi toward a software as a service model, with increasing momentum of our
next-generation virtual meeting solutions, iMeet^® and GlobalMeet^®, in the
global market."

"This year, we plan to continue to enhance our suite of PGi software products
that will open new market opportunities and further position PGi as a global
leader in business collaboration. We are optimistic in our outlook, and we see
2013 as another year of solid organic growth and higher profitability for
PGi."

2012 Financial Results
In 2012, net revenues increased 6.6% to $505.3 million, compared to $473.8
million in 2011.  Diluted EPS from continuing operations was $0.58 in 2012,
compared to diluted EPS from continuing operations of $0.34 in 2011. Non-GAAP
diluted EPS from continuing operations increased 17.7% to $0.73* in 2012,
compared to non-GAAP diluted EPS from continuing operations of $0.62* in
2011. 

2012 Accomplishments

  o Reported our highest annual organic revenue growth in four years, with
    organic revenue increasing 7.5%* as compared to 2011;
  o Reported non-GAAP diluted EPS from continuing operations growth of nearly
    18%* as compared to 2011;
  o Grew total meetings hosted by nearly 30% as compared to 2011;
  o More than doubled the revenue run-rate from iMeet and GlobalMeet, exiting
    2012 with an annual revenue run-rate of nearly $23 million from these
    solutions;
  o Earned multiple awards and accolades for our product innovation,
    including:

       o iMeet awarded Silver for Best New Product by Edison Awards;
       o PGi awarded the Silver Stevie® Award for Most Innovative Tech Company
         of the Year by the American Business Awards^SM;
       o PGi awarded the Bronze Stevie® Award for Most Innovative Company of
         the Year in Canada and the U.S.A. by the International Business
         Awards^SM; and
       o PGi named one of the InformationWeek® Top 250 Innovators of the Year.

  o Announced a multi-year, multi-million dollar strategic alliance with
    Deutsche Telekom, naming the integrated telecommunications company as the
    exclusive reseller of iMeet in Germany;
  o Announced a multi-year strategic alliance with eircom, Ireland's leading
    provider of fixed and mobile telecommunications, who will offer PGi's
    entire suite of conferencing solutions, including iMeet and GlobalMeet, to
    its business customers;
  o Established a new open market share repurchase program for up to 5.0
    million shares of our common stock; and
  o Repurchased nearly 3.2 million shares of common stock in the open market
    under our prior share repurchase plan.

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.  PGi assumes no duty to update any
forward-looking statements made in this press release.

Based on current business trends and current foreign currency exchange rates,
PGi anticipates net revenues from continuing operations in 2013 will be in the
range of $525-$535 million and non-GAAP diluted EPS from continuing operations
will be in the range of $0.81-$0.85*.

PGi will host a conference call today 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:  (888) 278-8475 (U.S.
and Canada) or (913) 312-0390 (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 Measures
To 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 net revenues and segment net revenues, 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 has been a global leader in virtual meetings for over 20 years. Our
cloud-based solutions deliver multi-point, real-time virtual collaboration
using video, voice and file sharing technologies. PGi solutions are available
via desktops, tablets or mobile devices, helping businesses worldwide be more
productive, mobile and green.  PGi has a global presence in 25 countries and
an established base of over 40,000 enterprise customers, including 75% of the
Fortune 100^™.  In the last five years, PGi has hosted nearly one billion
people from 137 countries in over 200 million meetings. For more information,
visit PGi at http://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 and the development of alternatives to our services; market acceptance
of new cloud-based, virtual meeting services, including our iMeet® and
GlobalMeet® services; our ability to attract new customers and to retain and
further penetrate our existing customers; risks associated with challenging
global economic conditions; price increases from our telecommunications
service providers; service interruptions and network downtime; technological
obsolescence and our ability to upgrade our equipment or increase our network
capacity; concerns regarding the security of transactions; future write-downs
of goodwill or other intangible assets; greater than anticipated tax
liabilities; restructuring and cost reduction initiatives and the market
reaction thereto; our level of indebtedness; risks associated with
acquisitions and divestitures; the impact of the sale of our PGiSend business;
our ability to protect our intellectual property rights, including possible
adverse results of litigation or infringement claims; regulatory or
legislative changes, including further government regulations applicable to
traditional telecommunications service providers and data privacy; risks
associated with international operations and market expansion, including
fluctuations in foreign currency exchange rates; and other factors described
from time to time in our press releases, reports and other filings with the
Securities and Exchange Commission, including but not limited to the "Risk
Factors" section of our Annual Report on Form 10-K for the year ended December
31, 2011. All forward-looking statements attributable to us or a person acting
on our behalf are expressly qualified in their entirety by this cautionary
statement. 

Investor Calls

Sean O'Brien
Executive Vice President
Strategy & Communications
(404) 262-8462

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
                               Three Months Ended     Twelve Months Ended  
                               December 31,           December 31, 
                              2012        2011       2012            2011
                               (Unaudited)            (Unaudited) 
Net revenues                  $  125,771  $          $  505,281      $  
                                           118,735                    473,834
Operating expenses: 
    Cost of revenues
    (exclusive of
    depreciation and
    amortization shown
          separately below)   54,110      49,227     215,154         195,822
    Selling and marketing     31,875      31,492     130,631         134,018
    General and
    administrative
    (exclusive of expenses
          shown separately    16,342      14,767     63,412          57,176
          below)
    Research and development  3,741       2,784      14,349          11,521
    Excise and sales tax      203         -          321             352
    expense
    Depreciation              8,275       7,659      32,482          30,831
    Amortization              742         1,304      3,981           6,365
    Restructuring costs       (91)        809        612             847
    Asset impairments         138         340        879             456
    Net legal settlements     183         375        2,034           490
    and related expenses
          Total operating     115,518     108,757    463,855         437,878
          expenses
Operating income              10,253      9,978      41,426          35,956
Other (expense) income:
    Interest expense          (1,763)     (3,573)    (7,167)         (9,954)
    Interest income           30          12         49              46
    Other, net                (277)       (339)      (808)           (574)
          Total other         (2,010)     (3,900)    (7,926)         (10,482)
          expense
Income from continuing
operations before income      8,243       6,078      33,500          25,474
taxes
Income tax (benefit) expense  (1,173)     2,797      5,445           8,586
Net income from continuing    9,416       3,281      28,055          16,888
operations
(Loss) income from
discontinued operations, net  (131)       (2,194)    (465)           4,546
of taxes
Net income                    $           $          $     27,590    $      
                              9,285       1,087                      21,434
BASIC WEIGHTED-AVERAGE        46,546      48,540     47,596          49,619
SHARES OUTSTANDING
Basic net income (loss) per
share (1)
    Continuing operations     $           $          $         0.59  $        
                              0.20          0.07                       0.34
    Discontinued operations   -           (0.05)     (0.01)          0.09
     Net income per share     $           $          $         0.58  $        
                              0.20          0.02                       0.43
DILUTED WEIGHTED-AVERAGE      47,103      48,970     48,092          49,971
SHARES OUTSTANDING
Diluted net income (loss)
per share (1)
    Continuing operations     $           $          $         0.58  $        
                              0.20          0.07                       0.34
    Discontinued operations   -           (0.04)     (0.01)          0.09
    Net income per share      $           $          $         0.57  $        
                              0.20          0.02                       0.43
(1) Column totals may not sum due to the effect of
    rounding on EPS.

 

 

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
                                             December 31,        December 31, 
                                             2012                2011
                                             (Unaudited)
ASSETS
CURRENT ASSETS
 Cash and equivalents                        $           20,976  $          
                                                                 32,033
 Accounts receivable (less allowances of     75,149              72,518
 $834 and $613, respectively)
 Prepaid expenses and other current assets   18,245              13,906
 Income taxes receivable                     1,272               1,739
 Deferred income taxes, net                  2,566               1,090
        Total current assets                 118,208             121,286
PROPERTY AND EQUIPMENT, NET                  104,613             103,449
OTHER ASSETS
 Goodwill                                    297,773             295,690
 Intangibles, net of amortization            7,384               10,906
 Deferred income taxes, net                  5,848               3,474
 Other assets                                7,942               8,016
        TOTAL ASSETS                         $         541,768   $        
                                                                 542,821
          LIABILITIES AND SHAREHOLDERS'
EQUITY
CURRENT LIABILITIES
 Accounts payable                            $           48,166  $          
                                                                 42,589
 Income taxes payable                        1,116               962
 Accrued taxes, other than income taxes      4,333               3,611
 Accrued expenses                            32,093              28,999
 Current maturities of long-term debt and    3,137               3,845
 capital lease obligations 
 Accrued restructuring costs                 1,040               2,287
 Deferred income taxes, net                  15                  386
        Total current liabilities            89,900              82,679
LONG-TERM LIABILITIES
 Long-term debt and capital lease            179,832             195,963
 obligations 
 Accrued restructuring costs                 117                 1,410
 Accrued expenses                            19,661              17,249
 Deferred income taxes, net                  54                  1,783
        Total long-term liabilities          199,664             216,405
SHAREHOLDERS' EQUITY
 Common stock, $0.01 par value; 150,000,000
 shares authorized,
 47,745,592 and 50,144,703 shares issued and 477                 501
 outstanding, respectively
 Additional paid-in capital                  453,621             475,013
 Accumulated other comprehensive gain        13,102              10,809
 Accumulated deficit                         (214,996)           (242,586)
        Total shareholders' equity           252,204             243,737
        TOTAL LIABILITIES AND SHAREHOLDERS'  $         541,768   $        
        EQUITY                                                   542,821

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 (in thousands)
                                                Twelve Months Ended
                                                December 31, 
                                                2012            2011
                                                (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income                                    $       27,590  $       21,434
  Loss (income) from discontinued operations,   465             (4,546)
  net of taxes
       Net income from continuing operations    28,055          16,888
 Adjustments to reconcile net income to net
 cash provided by operating activities:
  Depreciation                                  32,482          30,831
  Amortization                                  3,981           6,365
  Amortization of debt issuance costs           592             926
  Write-off of unamortized debt issuance costs  -               743
  Net legal settlements and related expenses    2,034           399
  Payments for legal settlements and related    (1,512)         (246)
  expenses
  Deferred income taxes                         (5,333)         2,388
  Restructuring costs                           612             847
  Payments for restructuring costs              (3,213)         (6,779)
  Asset impairments                             879             456
  Equity-based compensation                     8,074           6,757
  Excess tax benefits from share-based payment  (367)           -
  arrangements
  Provision for doubtful accounts               1,089           626
  Changes in assets and liabilities, net of
  effect of acquisitions and dispositions:
      Accounts receivable, net                  (3,581)         (8,937)
      Other assets and liabilities              (2,404)         3,900
      Accounts payable and accrued expenses     9,133           3,565
           Net cash provided by operating
           activities from continuing           70,521          58,729
           operations
           Net cash used in operating
           activities from discontinued         (672)           (792)
           operations
           Net cash provided by operating       69,849          57,937
           activities
CASH FLOWS FROM INVESTING ACTIVITIES
  Capital expenditures                          (32,338)        (30,100)
  Other investing activities                    (1,273)         (1,709)
  Business dispositions                         -               1,902
           Net cash used in investing
           activities from continuing           (33,611)        (29,907)
           operations
           Net cash used in investing
           activities from discontinued         (60)            (276)
           operations
           Net cash used in investing           (33,671)        (30,183)
           activities
CASH FLOWS FROM FINANCING ACTIVITIES
  Principal payments under borrowing            (94,655)        (70,793)
  arrangements
  Proceeds from borrowing arrangements          75,929          85,971
  Payments of debt issuance costs               (23)            (1,469)
  Excess tax benefits of share-based payment    367             -
  arrangements
  Purchase of treasury stock, at cost           (29,915)        (23,852)
  Exercise of stock options                     932             614
           Net cash used in financing
           activities from continuing           (47,365)        (9,529)
           operations
           Net cash used in financing
           activities from discontinued         -               (140)
           operations
           Net cash used in financing           (47,365)        (9,669)
           activities
Effect of exchange rate changes on cash and     130             (1,153)
equivalents
NET (DECREASE) INCREASE IN CASH AND             (11,057)        16,932
EQUIVALENTS
CASH AND EQUIVALENTS, beginning of period       32,033          15,101
CASH AND EQUIVALENTS, end of period             $       20,976  $       32,033

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
                                  Three Months Ended      Twelve Months Ended 
                                  December 31,            December 31,
                                  2012         2011       2012       2011
                                  (Unaudited)             (Unaudited)
Non-GAAP Operating Income (1)
    Operating income, as          $            $          $          $    
    reported                       10,253       9,978      41,426     35,956
    Restructuring costs           (91)         809        612        847
    Excise and sales tax          203          -          321        352
    expense
    Asset impairments             138          340        879        456
    Net legal settlements and     183          375        2,034      490
    related expenses
    Equity-based compensation     1,961        1,548      8,074      6,757
    Amortization                  742          1,304      3,981      6,365
          Non-GAAP operating      $            $          $          $    
          income                   13,389       14,354     57,327     51,223
Non-GAAP Net Income from
Continuing Operations (1)
    Net income from continuing    $            $          $          $    
    operations, as reported        9,416        3,281      28,055     16,888
    Elimination of
    non-recurring tax             (3,376)      1,217      (4,354)    1,672
    adjustments
    Restructuring costs           (67)         599        433        617
    Excise and sales tax          149          -          227        256
    expense
    Excise and sales tax          -            -          -          117
    interest
    Asset impairments             101          252        622        332
    Net legal settlements and     134          278        1,439      357
    related expenses
    Equity-based compensation     1,437        1,146      5,712      4,923
    Amortization                  544          965        2,817      4,638
    Debt refinance costs and
    other non-recurring           -            978        -          962
    interest
          Non-GAAP net income     $            $          $          $    
          from continuing          8,338        8,716      34,951     30,762
          operations
Non-GAAP Diluted EPS from
Continuing Operations (1) (2)
    Diluted net income per        $            $          $          $        
    share from continuing           0.20         0.07       0.58      0.34
    operations, as reported
    Elimination of
    non-recurring tax             (0.07)       0.02       (0.09)     0.03
    adjustments
    Restructuring costs           -            0.01       0.01       0.01
    Excise and sales tax          -            -          -          0.01
    expense
    Excise and sales tax          -            -          -          -
    interest
    Asset impairments             -            0.01       0.01       0.01
    Net legal settlements and     -            0.01       0.03       0.01
    related expenses
    Equity-based compensation     0.03         0.02       0.12       0.10
    Amortization                  0.01         0.02       0.06       0.09
    Debt refinance costs and
    other non-recurring           -            0.02       -          0.02
    interest
          Non-GAAP diluted EPS    $            $          $          $        
          from continuing           0.18         0.18       0.73      0.62
          operations
    Management believes that presenting non-GAAP operating income, non-GAAP
    net income from continuing operations and non-GAAP diluted EPS from
    continuing operations provide useful information regarding underlying
    trends in the company's continuing operations. Management expects
    equity-based compensation and amortization expenses to be recurring costs
    and presents non-GAAP net income from continuing operations and non-GAAP
    diluted EPS from continuing operations to exclude these non-cash items as
(1) well as non-recurring items that are unrelated to the company's ongoing
    operations, including non-recurring tax adjustments, restructuring costs,
    excise and sales tax expense, excise and sales tax company's ongoing
    operations, including non-recurring tax adjustments, restructuring costs,
    excise and sales tax expense, excise and sales tax interest, asset
    impairments, net legal settlements and related expenses and debt refinance
    costs and other non-recurring interest. These non-cash and non-recurring
    items are presented net of taxes for non-GAAP net income from continuing
    operations and non-GAAP diluted EPS from continuing operations.
(2) Column totals may not sum due to the
    effect of rounding on EPS.

 

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSTANT CURRENCY ADJUSTMENTS AND ORGANIC GROWTH
Prior Year Quarter Constant Currency
Adjustments (3)
                                Impact of
                    Q4 - 12     fluctuations
                    (Constant   in foreign      Q4 - 12
                    currency)   currency        (Actual)
                                exchange rates
                    (Unaudited, in thousands,
                    except per share data)
       Net Revenues $           $     (217)     $    
                     125,988                    125,771
       North        $                           $      
       America Net     82,477   $     102       82,579
       Revenue
       Europe Net   $           $     (302)     $      
       Revenue         27,730                   27,428
       Asia Pacific $           $     (17)      $      
       Net Revenue     15,781                   15,764
       Non-GAAP     $                           $      
       Operating       13,379   $     10        13,389
       Income
       Non-GAAP Net
       Income from  $           $     91        $        
       Continuing        8,247                  8,338
       Operations
       Non-GAAP
       Diluted EPS  $                           $        
       from                     $     -           0.18
       Continuing    0.18
       Operations
    Management also presents the non-GAAP financial measures
(3) described under note 1 above, as well as net revenues and
    segment net revenue, 
    on a constant  currency basis compared to the same quarter in
    the previous year to exclude the effects of foreign currency
    exchange rates, which 
    are not completely within management's control, in order to
    facilitate period-to-period comparison of the company's
    financial results 
    without the distortion of these fluctuations.  These
    constant currency adjustments convert current quarter
    results using 
    prior period
    (Q4 - 11)
    average
    exchange rates.
Sequential Quarter
Constant Currency
Adjustments (4)
                                Impact of 
                    Q4 - 12     fluctuations
                    (Constant   in foreign      Q4 - 12
                    currency)   currency        (Actual)
                                exchange rates
                    (Unaudited, in thousands)
      Net Revenues  $           $               $    
                     125,313            458     125,771
    Management also presents net revenues on a constant currency
(4) basis compared to the prior quarter to exclude the effects of
    foreign 
    currency exchange rates, which are not completely within
    management's control, in order to facilitate period-to-period
    comparison of 
    the company's financial results without the distortion
    of these fluctuations.  These constant currency
    adjustments convert current 
    quarter results using
    prior period (Q3 - 12)
    average exchange rates.
Organic Growth (5)
                                Impact of                            Organic
                                                Organic              net
                    December    fluctuations    net        December
                    31,         in foreign      revenue    31,       revenue
                    2011        currency        growth     2012
                                exchange rates                       growth
                                                                     rate
                    (Unaudited, in thousands, except percentages)
      Net Revenues, $           $               $          $    
      Three Months   118,735                    7,253      125,771   6.1%
      Ended                     (217)
       Net
      Revenues,     $           $               $          $         7.5%
      Twelve Months  473,834           (4,082)  35,529      505,281
      Ended
    Management defines "organic growth" as revenue changes excluding the
(5) impact of foreign currency exchange rate fluctuations and acquisitions
    made 
    during the periods presented and presents this non-GAAP
    financial measure to exclude the effect of these items that are
    not completely within 
    management's control, such as foreign currency exchange rate
    fluctuations, or do not reflect the company's ongoing core
    operations or underlying 
    growth, such as acquisitions. The Company
    did not make any acquisitions during the
    period presented.

(Logo: http://photos.prnewswire.com/prnh/20120628/MM33070LOGO ) 

 

SOURCE Premiere Global Services, Inc.
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