PGi Reports Fourth Quarter and Fiscal Year 2013 Results: SaaS Products Up Nearly 75% in 2013, Comprising 6% of Total Revenues;

  PGi Reports Fourth Quarter and Fiscal Year 2013 Results: SaaS Products Up
Nearly 75% in 2013, Comprising 6% of Total Revenues; Free Cash Flow Approaches
                               $1.00 Per Share*

Company Reiterates 2014 Financial Outlook

PR Newswire

ATLANTA, Feb. 20, 2014

ATLANTA, Feb. 20, 2014 /PRNewswire/ --Premiere Global Services, Inc. (NYSE:
PGI), a leading global provider of collaboration software and services for
over 20 years, today announced final results for the fourth quarter and fiscal
year ended December 31, 2013.

Fourth Quarter 2013 Financial Results

In the fourth quarter of 2013, net revenues increased approximately 7.0% to
$134.6 million, compared to $125.8 million in the fourth quarter of 2012.
Diluted EPS from continuing operations was $(0.03) in the fourth quarter of
2013, compared to diluted EPS from continuing operations of $0.20 in the
fourth quarter of 2012. Non-GAAP diluted EPS from continuing operations was
$0.20* in the fourth quarter of 2013, compared to $0.18* in the fourth quarter
of 2012.

"We are pleased with our 2013 performance, as we accelerated sales of our
collaboration software applications and made solid progress in transitioning
PGi to a higher-value SaaS model – while also generating significant free cash
flow of nearly $1.00 per share*," said Boland T. Jones, PGi founder, chairman
and CEO. "We continue to be optimistic in our outlook, and we see 2014 as
another year of solid growth and higher profitability for PGi."

2013 Financial Results

In 2013, net revenues total $526.9 million, compared to $505.3 million in
2012. Diluted EPS from continuing operations was $0.40 in 2013, compared to
diluted EPS from continuing operations of $0.58 in 2012. Non-GAAP diluted EPS
from continuing operations totaled $0.78* in 2013, compared to non-GAAP
diluted EPS from continuing operations of $0.73* in 2012.

2013 Accomplishments

  oGrew revenue from PGi SaaS products nearly 75% to approximately $31
    million;
  oExited the year with an annual revenue run-rate of approximately$37
    million from SaaS products;
  oNamed a Top 10 Innovative Technology Company in Georgia by the Technology
    Association of Georgia (TAG);
  oAcquired ACT Teleconferencing, Inc., a global provider of integrated
    conferencing solutions with operations in eight countries in North
    America, Europe and Asia Pacific;
  oAcquired Via-Vox Limited, operating under the name Powwownow, one of
    Europe's fastest growing conferencing providers focused on small and
    midsize businesses;
  oIncreased the borrowing capacity, extended the term and improved the
    pricing and covenants of its credit facility, providing additional
    flexibility to execute its strategic growth plans, while also lowering its
    cost of capital;
  oAnnounced a multi-year strategic alliance with TeliaSonera, a leading
    provider of network access and telecommunication services in the Nordic
    and Baltic countries, to bring PGi's virtual meeting solutions to
    TeliaSonera's business and consumer customers in these regions;
  oAnnounced iMeet® accessibility via the SAP® Business ByDesign® solution,
    making it available to even more fast-growing, mid-market businesses and
    subsidiaries of large enterprises working with SAP around the world; and
  oAnnounced a managed services agreement with Ingram Micro Inc., the world's
    largest technology distributor and a global leader in IT supply-chain,
    adding iMeet to the Ingram Micro Cloud Marketplace.

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,
and assuming no additional acquisitions, PGi continues to anticipate that
results for 2014 will be within the financial outlook ranges previously
provided: net revenues from continuing operations are projected to be in the
range of $560-$570 million and non-GAAP diluted EPS from continuing operations
are projected to be in the range of $0.85-$0.88*. PGi continues to anticipate
that sales of its SaaS-based products will increase over 50% in 2014 compared
to 2013 and will comprise in excess of 10% of its consolidated annual revenue
run-rate by the end of 2014.

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) 271-8604 (U.S.
and Canada) or (913) 312-0704 (International), participant code 5278333. 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, free cash flow and organic growth. Except for free cash
flow, 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.

SAP, ByDesign and all SAP logos are trademarks or registered trademarks of SAP
AG in Germany and in several other countries. All other trademarks and
registered trademarks are the property of their respective owners.

About Premiere Global Services, Inc. │ PGi

PGi has been a leading global provider of collaboration software and services
for over 20 years. PGi's cloud-based software applications let business users
connect, collaborate and share ideas and information from their desktop,
tablet or smartphone, enabling greater productivity in the office or on the
go. PGi has a global presence in 25 countries, and its award-winningsolutions
provide a collaborative advantage to over 45,000 enterprise customers,
including 75% of the Fortune 100™.In the last five years, PGi has hosted more
than 1.1 billion people from 137 countries in over 250 million virtual
meetings. For more information, visit PGi 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 PGi'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 our cloud-based, virtual
meeting solutions, including our iMeet^® and GlobalMeet^® solutions; our
ability to attract new customers and to retain and further penetrate our
existing customers; our ability to establish and maintain strategic reseller
relationships; 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 and privacy of our customers' confidential information; future
write-downs of goodwill or other intangible assets; greater than anticipated
tax and regulatory liabilities; restructuring and cost reduction initiatives
and the market reaction thereto; our level of indebtedness; risks associated
with acquisitions and divestitures; indemnification claims from 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, 2012. All forward-looking statements attributable to us or a
person acting on our behalf are expressly qualified in their entirety by this
cautionary statement. We do not undertake any obligation to update or to
release publicly any revisions to forward-looking statements contained in this
press release to reflect events or circumstances occurring after the date of
this press release or the date of the statement, if a different date, or to
reflect the occurrence of unanticipated events.



PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
                                  Three Months Ended   Year Ended
                                  December 31,          December 31,
                                  2013        2012        2013        2012
Net revenues                      $ 134,625  $ 125,771  $ 526,865  $
                                                                      505,281
Operating expenses:
    Cost of revenues (exclusive
    of depreciation and           57,428      54,110      225,994     215,154
    amortization shown
    separately below)
    Selling and marketing         32,502      31,875      134,426     130,631
    General and administrative
    (exclusive of expenses shown  17,935      16,342      65,219      63,412
    separately below)
    Research and development      4,875       3,741       16,574      14,349
    Excise and sales tax expense  1,891       203         1,969       321
    Depreciation                  8,729       8,275       33,758      32,482
    Amortization                  1,787       742         3,496       3,981
    Restructuring costs           3,065       (91)        3,506       612
    Asset impairments             980         138         1,196       879
    Net legal settlements and     7           183         598         2,034
    related expenses
    Acquisition-related costs     2,348       -           5,392       -
           Total operating        131,547     115,518     492,128     463,855
           expenses
Operating income                  3,078       10,253      34,737      41,426
Other (expense) income:
    Interest expense              (2,225)     (1,763)     (7,152)     (7,167)
    Interest income               24          30          117         49
    Other, net                    84          (277)       214         (808)
           Total other expense,   (2,117)     (2,010)     (6,821)     (7,926)
           net
Income from continuing operations 961         8,243       27,916      33,500
before income taxes
Income tax expense (benefit)      2,241       (1,173)     9,062       5,445
Net (loss) income from            (1,280)     9,416       18,854      28,055
continuing operations
Loss from discontinued            (120)       (131)       (538)       (465)
operations, net of taxes
Net (loss) income                 $          $         $          $ 
                                  (1,400)    9,285      18,316     27,590
BASIC WEIGHTED-AVERAGE SHARES     46,328      46,546      46,214      47,596
OUTSTANDING
Basic net (loss) income per
share (1)
    Continuing operations         $         $        $        $   
                                  (0.03)     0.20       0.41       0.59
    Discontinued operations       -           -           (0.01)      (0.01)
    Net (loss) income per share   $         $        $        $   
                                  (0.03)     0.20       0.40       0.58
DILUTED WEIGHTED-AVERAGE SHARES   46,328      47,103      46,727      48,092
OUTSTANDING
Diluted net (loss) income per
share (1)
    Continuing operations         $         $        $        $   
                                  (0.03)     0.20       0.40       0.58
    Discontinued operations       -           -           (0.01)      (0.01)
    Net (loss) income per share   $         $        $        $   
                                  (0.03)     0.20       0.39       0.57
(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)
(unaudited)
                                                  December 31,  December 31,
                                                  2013           2012
ASSETS
CURRENT ASSETS
 Cash and equivalents                             $         $     
                                                  44,955         20,976
 Accounts receivable (less allowances of $760 and 78,481         75,149
 $834, respectively)
 Prepaid expenses and other current assets        22,645         18,245
 Income taxes receivable                          2,316          1,272
 Deferred income taxes, net                       4,390          9,852
          Total current assets                    152,787        125,494
PROPERTY AND EQUIPMENT, NET                       105,724        104,613
OTHER ASSETS
 Goodwill                                         341,382        297,773
 Intangibles, net of amortization                 78,637         7,384
 Deferred income taxes, net                       1,957          2,597
 Other assets                                     17,621         7,942
          TOTAL ASSETS                            $          $    
                                                  698,108        545,803
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
 Accounts payable                                 $         $     
                                                  51,994         48,166
 Income taxes payable                             2,648          1,116
 Accrued taxes, other than income taxes           11,190         4,333
 Accrued expenses                                 34,402         32,093
 Current maturities of long-term debt and capital 1,719          3,137
 lease obligations
 Accrued restructuring costs                      2,104          1,040
 Deferred income taxes, net                       171            15
          Total current liabilities               104,228        89,900
LONG-TERM LIABILITIES
 Long-term debt and capital lease obligations    272,467        179,832
 Accrued restructuring costs                      77             117
 Accrued expenses                                 29,570         15,541
 Deferred income taxes, net                       18,881         8,209
          Total long-term liabilities             320,995        203,699
SHAREHOLDERS' EQUITY
 Common stock, $0.01 par value; 150,000,000
 shares authorized, 48,338,335 and 47,745,592     483            477
 shares issued and outstanding, respectively
 Additional paid-in capital                       457,913        453,621
 Accumulated other comprehensive income           11,169         13,102
 Accumulated deficit                              (196,680)      (214,996)
          Total shareholders' equity              272,885        252,204
          TOTAL LIABILITIES AND SHAREHOLDERS'     $          $    
          EQUITY                                  698,108        545,803



PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
                                                Year Ended
                                                December 31,
                                                2013            2012
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income                                   $    18,316  $    27,590
  Loss from discontinued operations, net of     538             465
  taxes
      Net income from continuing operations   18,854          28,055
 Adjustments to reconcile net income to net
 cash provided by operating activities:
  Depreciation                                  33,758          32,482
  Amortization                                  3,496           3,981
  Amortization of debt issuance costs          611             592
  Net legal settlements and related expenses    598             2,034
  Payments for legal settlements and related    (510)           (1,512)
  expenses
  Deferred income taxes                         3,068           (4,322)
  Restructuring costs                           3,506           612
  Payments for restructuring costs             (2,469)         (3,213)
  Asset impairments                             1,196           879
  Equity-based compensation                     7,872           8,074
  Excess tax benefits from share-based payment  (525)           (367)
  arrangements
  Provision for doubtful accounts               514             1,089
  Acquisition-related costs                     5,392           -
  Cash paid for acquisition-related costs       (3,863)         -
  Changes in assets and liabilities, net of
  effect of acquisitions and dispositions:
      Changes in working capital                4,360           2,137
        Net cash provided by operating          75,858          70,521
        activities from continuing operations
        Net cash used in operating activities   (554)           (672)
        from discontinued operations
        Net cash provided by operating         75,304          69,849
        activities
CASH FLOWS FROM INVESTING ACTIVITIES
  Capital expenditures                          (31,774)        (32,338)
  Business acquisitions, net of cash acquired   (102,145)       -
  Other investing activities                    (452)           (1,273)
        Net cash used in investing activities   (134,371)       (33,611)
        from continuing operations
        Net cash used in investing activities   -               (60)
        from discontinued operations
        Net cash used in investing activities  (134,371)       (33,671)
CASH FLOWS FROM FINANCING ACTIVITIES
  Principal payments under borrowing            (78,847)        (94,655)
  arrangements
  Proceeds from borrowing arrangements          166,750         75,929
  Payments of debt issuance costs               (1,258)         (23)
  Excess tax benefits of share-based payment    525             367
  arrangements
  Purchase and retirement of treasury stock,    (4,066)         (29,915)
  at cost
  Exercise of stock options                     -               932
        Net cash provided by (used in)
        financing activities from continuing    83,104          (47,365)
        operations
        Net cash used in financing activities   -               -
        from discontinued operations
        Net cash provided by (used in)         83,104          (47,365)
        financing activities
Effect of exchange rate changes on cash and     (58)            130
equivalents
NET INCREASE (DECREASE) IN CASH AND             23,979          (11,057)
EQUIVALENTS
CASH AND EQUIVALENTS, beginning of year         20,976          32,033
CASH AND EQUIVALENTS, end of year               $    44,955  $    20,976



PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
(unaudited)
                                   Three Months Ended  Year Ended
                                   December 31,         December 31,
                                   2013        2012       2013       2012
Non-GAAP Operating Income (1)
    Operating income, as reported $        $        $        $  
                                   3,078      10,253    34,737    41,426
    Restructuring costs           3,065       (91)       3,506      612
    Excise and sales tax expense   1,891       203        1,969      321
    Asset impairments              980         138        1,196      879
    Net legal settlements and      7           183        598        2,034
    related expenses
    Acquisition-related costs      2,348       -          5,392      -
    Equity-based compensation      2,178       1,961      7,872      8,074
    Amortization                   1,787       742        3,496      3,981
         Non-GAAP operating income $         $        $        $  
                                   15,334     13,389    58,766    57,327
Non-GAAP Net Income from
Continuing Operations (1)
    Net (loss) income from         $        $       $        $  
    continuing operations, as      (1,280)     9,416     18,854    28,055
    reported
    Elimination of non-recurring   1,939       (3,376)    687        (4,354)
    tax adjustments
    Restructuring costs            2,101       (67)       2,454      433
    Excise and sales tax expense   1,296       149        1,378      227
    Excise and sales tax interest  127         -          130        -
    Asset impairments              672         101        837        622
    Net legal settlements and      5           134        419        1,439
    related expenses
    Acquisition-related costs      1,610       -          3,774      -
    Equity-based compensation      1,493       1,437      5,510      5,712
    Amortization                   1,225       544        2,447      2,817
         Non-GAAP net income from  $        $       $        $  
         continuing operations     9,188      8,338     36,490    34,951
Non-GAAP Diluted EPS from
Continuing Operations (1) (2)
    Diluted net (loss) income per  $        $      $      $    
    share from continuing          (0.03)     0.20      0.40      0.58
    operations, as reported
    Elimination of non-recurring   0.04        (0.07)     0.01       (0.09)
    tax adjustments
    Restructuring costs            0.04        -          0.05       0.01
    Excise and sales tax expense   0.03        -          0.03       -
    Excise and sales tax interest  -           -          -          -
    Asset impairments              0.01        -          0.02       0.01
    Net legal settlements and      -           -          0.01       0.03
    related expenses
    Acquisition-related costs      0.03        -          0.08       -
    Equity-based compensation      0.03        0.03       0.12       0.12
    Amortization                   0.03        0.01       0.05       0.06
         Non-GAAP diluted EPS from $       $      $      $    
         continuing operations     0.20       0.18      0.78      0.73
Free Cash Flow (3)
    Net cash provided by operating
    activities from continuing                            $ 75,858   $ 70,521
    operations, as reported
    Less: Capital expenditures, as                        (31,774)   (32,338)
    reported
         Free cash flow                                   44,084     38,183
         Free cash flow per share                         $      $    
                                                          0.94      0.79
    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
(1) diluted EPS from continuing operations to exclude these non-cash items as
    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 interest, asset
    impairments, net legal settlements and related expenses and
    acquisition-related costs. 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.
    Column totals may not sum due to the effect of rounding on EPS. For the
    three months ended December 31, 2013, diluted net loss per share from
    continuing operations, as reported, is calculated using basic
    weighted-average shares outstanding of 46,328. The effect of share-based
    awards is excluded from the shares used in this calculation because such
(2) effect is anti-dilutive. However, non-GAAP diluted EPS from continuing
    operations is calculated using diluted weighted-average shares outstanding
    of 46,933. The effect of share-based awards is included in the shares used
    in the calculation of non-GAAP diluted EPS

    from continuing operations because such effect is dilutive.
    Management defines "free cash flow" as net cash provided by operating
    activities from continuing operations, less capital expenditures.
    Management believes that this non-GAAP measure provides a relevant measure
(3) of the company's liquidity in evaluating its financial performance and
    ability to generate cash without additional external financing in order to
    repay debt obligations, fund acquisitions and repurchase shares.
    Management utilizes diluted weighted-average shares outstanding in
    calculating free cash flow per share.



PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
CONSTANT CURRENCY ADJUSTMENTS AND ORGANIC GROWTH
(unaudited)
Prior Year Quarter Constant Currency
Adjustments (4)
                          Impact of
                          fluctuations
               Q4 - 13    in            Q4 - 13
               (Constant  foreign       (Actual)
               currency)  currency
                          exchange
                          rates
               (in thousands, except per share data)
    Net        $ 135,748  $  (1,123)   $ 134,625
    Revenues
    North
    America    $         $   (227)  $  87,008
    Net        87,235
    Revenue
    Europe Net $         $    453  $  31,173
    Revenue    30,720
    Asia
    Pacific    $         $  (1,349)   $  16,444
    Net        17,793
    Revenue
    Non-GAAP   $ 
    Operating  15,547     $   (213)  $  15,334
    Income
    Non-GAAP
    Net Income $        $    
    from       9,175      13           $   9,188
    Continuing
    Operations
    Non-GAAP
    Diluted    $       $     
    EPS from   0.20        -           $    0.20
    Continuing
    Operations
    Management also presents the non-GAAP financial measures 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
(4) 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 - 12) average exchange rates.
Sequential Quarter Constant Currency Adjustments (5)
                          Impact of
                          fluctuations
               Q4 - 13    in            Q4 - 13
               (Constant  foreign       (Actual)
               currency)  currency
                          exchange
                          rates
               (in thousands)
    Net        $ 133,958  $    667   $ 134,625
    Revenues
    Management also presents net revenues on a constant currency 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
(5) 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 - 13)
    average exchange rates.
Organic Growth (6)
                          Impact of
                          fluctuations                Organic             Organic
               December   in                          net       December  net
               31,        foreign       Acquisitions  revenue   31,       revenue
               2012       currency                    growth    2013      growth
                          exchange                                        rate
                          rates
               (in thousands, except percentages)
    Net
    Revenues,                                         $         $
    Three      $ 125,771  $  (1,123)   $  13,991    (4,014)  134,625   (3.2)%
    Months
    Ended
    Net                                               $        $
    Revenues,  $ 505,281  $  (4,239)   $  18,593    7,230    526,865   1.4%
    Year Ended
    Management defines "organic growth" as revenue changes excluding the impact
    of foreign currency exchange rate fluctuations and acquisitions made during
    the periods presented and presents this non-GAAP financial measure to exclude
(6) 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.



Media and Investor Contact:
Sean O'Brien
(404) 262-8462
sean.obrien@pgi.com

(Logo: http://photos.prnewswire.com/prnh/20131203/CL27071LOGO )

SOURCE PGi

Website: http://www.pgi.com
 
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