Welcome!

News Feed Item

PGi Reports First Quarter 2014 Results: Revenues Up 11% to $143.2M, Non-GAAP Diluted EPS from Continuing Operations $0.22*; SaaS Products Grow Over 50%

Company Increases 2014 Financial Outlook

ATLANTA, April 24, 2014 /PRNewswire/ -- Premiere Global Services, Inc. (NYSE: PGI), a leading global provider of collaboration software and services for over 20 years, today announced results for the first quarter ended March 31, 2014.

In the first quarter of 2014, net revenues increased nearly 11% to $143.2 million, compared to $129.5 million in the first quarter of 2013.  Diluted EPS from continuing operations was $0.11 in the first quarter of 2014, compared to diluted EPS from continuing operations of $0.15 in the first quarter of 2013.  Non-GAAP diluted EPS from continuing operations was $0.22* in the first quarter of 2014, compared to $0.19* in the first quarter of 2013. 

"We are pleased to have outperformed our first quarter plan in every major category," said Boland T. Jones, PGi founder, chairman and CEO. "We continue to be delighted by the strong market response to our SaaS-based collaboration solutions and the success we are having in upgrading customers to these highly differentiated products. We plan to continue to invest in driving higher sales of our SaaS products, and we believe that 2014 will be another year of solid growth and higher profitability for PGi."

First Quarter 2014 Accomplishments


  • Grew revenue from PGi SaaS products greater than 50% to $10.7 million;
  • Increased the annual revenue run rate from PGi SaaS products by approximately $4 million during the quarter to approximately $44 million;
  • Released version 3.5 of iMeet®, with increased meeting capacity and groundbreaking new recording, video streaming, meeting minutes and guest screen sharing functionalities;
  • Launched Agenday, a smart calendar app that provides one-touch meeting access and intelligent connections for lower costs, higher productivity and easier collaboration on the go; and
  • Agenday won The Best Mobile App Awards Platinum Award for Best Mobile Calendar.

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 has raised its financial outlook for 2014 as follows: net revenues from continuing operations are now projected to be in the range of $565-$575 million. PGi continues to project that non-GAAP diluted EPS from continuing operations in 2014 will be in the range of $0.85-$0.88*, as the company plans to continue to reinvest excess earnings this year in product, sales and marketing initiatives designed to accelerate sales of its collaboration software applications and its transition to a SaaS model.

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:  (866) 454-4209 (U.S. and Canada) or (913) 312-0671 (International), participant passcode 3176312.  The conference call will simultaneously be webcast.  Please visit 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 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-winning solutions 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 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, many of which are beyond our control. 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 PGi's SaaS products, including iMeet® and GlobalMeet®; our ability to attract new customers and to retain and further penetrate our existing customers; our ability to establish and maintain strategic reseller and distribution relationships; risks associated with challenging global economic conditions; price increases from our telecommunications service providers; service interruptions and network downtime, including undetected errors or defects in our software; 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 made 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, 2013. 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

(Unaudited, in thousands, except per share data)



















 Three Months Ended  





 March 31, 





2014


2013















Net revenues


$  143,239


$    129,492

Operating expenses: 






Cost of revenues (exclusive of depreciation and amortization shown







separately below)


59,542


55,507


Selling and marketing


37,836


34,163


General and administrative (exclusive of expenses







shown separately below)


17,935


15,493


Research and development


4,505


3,723


Depreciation


8,666


8,239


Amortization


2,483


462


Restructuring costs


-


70


Asset impairments


-


144


Net legal settlements and related expenses


-


120


Acquisition-related costs


1,905


-



Total operating expenses


132,872


117,921








Operating income


10,367


11,571








Other (expense) income:






Interest expense


(2,100)


(1,801)


Interest income


9


21


Other, net


291


30



Total other expense


(1,800)


(1,750)








Income from continuing operations before income taxes


8,567


9,821

Income tax expense


3,297


2,640

Net income from continuing operations


5,270


7,181








Loss from discontinued operations, net of taxes


(65)


(103)








Net income


$       5,205


$         7,078








BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING


46,385


46,087








Basic net income per share (1)






Continuing operations


$         0.11


$           0.16


Discontinued operations


-


-


Net income per share


$         0.11


$           0.15








DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING


47,020


46,515








Diluted net income per share






Continuing operations


$         0.11


$           0.15


Discontinued operations


-


-


Net income per share


$         0.11


$           0.15








(1)

Column totals may not sum due to the effect of rounding on EPS.





 

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands, except per share data)
















March 31, 


December 31, 




2014


2013







ASSETS




CURRENT ASSETS





Cash and equivalents

$           36,721


$           44,955


Accounts receivable (less allowances of $734 and $760, respectively)

87,923


78,481


Prepaid expenses and other current assets

17,586


22,645


Income taxes receivable

2,649


2,316


Deferred income taxes, net

4,577


4,390



Total current assets

149,456


152,787







PROPERTY AND EQUIPMENT, NET

104,685


105,724







OTHER ASSETS





Goodwill

340,749


341,382


Intangibles, net of amortization

76,340


78,637


Deferred income taxes, net

1,616


1,957


Other assets

17,340


17,621



TOTAL ASSETS

$         690,186


$         698,108







LIABILITIES AND SHAREHOLDERS' EQUITY




CURRENT LIABILITIES





Accounts payable

$           54,667


$           51,994


Income taxes payable

2,347


2,648


Accrued taxes, other than income taxes

13,810


11,190


Accrued expenses

31,939


34,402


Current maturities of long-term debt and capital lease obligations 

1,655


1,719


Accrued restructuring costs

819


2,104


Deferred income taxes, net

168


171



Total current liabilities

105,405


104,228







LONG-TERM LIABILITIES





Long-term debt and capital lease obligations 

258,419


272,467


Accrued restructuring costs

18


77


Accrued expenses

29,212


29,570


Deferred income taxes, net

21,500


18,881



Total long-term liabilities

309,149


320,995







SHAREHOLDERS' EQUITY





Common stock, $0.01 par value; 150,000,000 shares authorized,





48,443,924 and 48,338,335 shares issued and outstanding, respectively

486


483


Additional paid-in capital

457,475


457,913


Accumulated other comprehensive gain

9,146


11,169


Accumulated deficit

(191,475)


(196,680)



Total shareholders' equity

275,632


272,885



TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$         690,186


$         698,108







 

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 (Unaudited, in thousands)

























Three Months Ended







March 31, 







2014


2013










CASH FLOWS FROM OPERATING ACTIVITIES







Net income 


$         5,205


$          7,078



Loss from discontinued operations, net of taxes


65


103




 Net income from continuing operations 


5,270


7,181


Adjustments to reconcile net income to net cash provided by operating activities:







Depreciation


8,666


8,239



Amortization


2,483


462



Amortization of debt issuance costs 


161


148



Net legal settlements and related expenses


-


93



Payments for legal settlements and related expenses


-


(85)



Deferred income taxes


(22)


2,206



Restructuring costs


-


70



Payments for restructuring costs 


(1,347)


(660)



Asset impairments


-


144



Equity-based compensation


2,227


1,674



Excess tax benefits from share-based payment arrangements


(250)


(244)



Provision for doubtful accounts


229


(31)



Acquisition-related costs


1,905


-



Cash paid for acquisition-related costs


(1,447)


-



Changes in working capital


(3,746)


(6,786)





Net cash provided by operating activities from continuing operations


14,129


12,411





Net cash used in operating activities from discontinued operations


(42)


(105)





Net cash provided by operating activities


14,087


12,306










CASH FLOWS FROM INVESTING ACTIVITIES







Capital expenditures


(8,101)


(8,796)



Other investing activities, net


2,050


(425)





Net cash used in investing activities from continuing operations


(6,051)


(9,221)





Net cash used in investing activities from discontinued operations


-


-





Net cash used in investing activities


(6,051)


(9,221)



















CASH FLOWS FROM FINANCING ACTIVITIES







Principal payments under borrowing arrangements


(34,530)


(12,144)



Proceeds from borrowing arrangements


20,000


11,000



Excess tax benefits of share-based payment arrangements


250


244



Purchases and retirement of treasury stock, at cost


(2,245)


(1,134)



Exercise of stock options


53


-





Net cash used in financing activities from continuing operations


(16,472)


(2,034)





Net cash used in financing activities from discontinued operations


-


-





Net cash used in financing activities


(16,472)


(2,034)










Effect of exchange rate changes on cash and equivalents


202


(571)










NET (DECREASE) INCREASE IN CASH AND EQUIVALENTS


(8,234)


480

CASH AND EQUIVALENTS, beginning of period


44,955


20,976

CASH AND EQUIVALENTS, end of period


$       36,721


$       21,456










 

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES


RECONCILIATION OF NON-GAAP FINANCIAL MEASURES


(Unaudited, in thousands, except per share data)

















Three Months Ended 








March 31,








2014


2013











Non-GAAP Operating Income (1)








Operating income, as reported 


$      10,367


$      11,571




Restructuring costs 


-


70




Asset impairments


-


144




Net legal settlements and related expenses


-


120




Acquisition-related costs


1,905


-




Equity-based compensation


2,227


1,674




Amortization


2,483


462





Non-GAAP operating income


$      16,982


$      14,041













Non-GAAP Net Income from Continuing Operations (1)








Net income from continuing operations, as reported


$        5,270


$        7,181




Elimination of non-recurring tax adjustments


641


(257)




Restructuring costs


-


49




Asset impairments


-


102




Net legal settlements and related expenses


-


66




Acquisition-related costs


1,314


19




Equity-based compensation


1,537


1,180




Amortization


1,713


326





Non-GAAP net income from continuing operations


$      10,475


$        8,666













Non-GAAP Diluted EPS from Continuing Operations (1) (2)








Diluted net income per share from continuing operations, as reported


$           0.11


$           0.15




Elimination of non-recurring tax adjustments


0.01


(0.01)




Restructuring costs


-


-




Asset impairments


-


-




Net legal settlements and related expenses


-


-




Acquisition-related costs


0.03


-




Equity-based compensation


0.03


0.03




Amortization


0.04


0.01





Non-GAAP diluted EPS from continuing operations


$           0.22


$           0.19























(1)

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 well as non-recurring items that are unrelated to the company's


ongoing operations, including non-recurring tax adjustments, restructuring costs, 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. 











(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













Q1 - 14 (Constant currency)


fluctuations in foreign currency exchange rates


Q1 - 14 (Actual)











(Unaudited, in thousands, except per share data)

























Net Revenues

$          143,478


$                        (239)


$      143,239










North America Net Revenue

$            90,485


$                        (355)


$        90,130










Europe Net Revenue

$            36,068


$                       1,060


$        37,128










Asia Pacific Net Revenue

$            16,925


$                        (944)


$        15,981










Non-GAAP Operating Income

$            16,829


$                          153


$        16,982










Non-GAAP Net Income from Continuing Operations

$            10,511


$                          (36)


$        10,475










Non-GAAP Diluted EPS from Continuing Operations

$                0.22


$                              -


$            0.22






















(3)

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 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 (Q1 - 13) average exchange rates.

































Sequential Quarter Constant Currency Adjustments (4)

































Impact of 













Q1 - 14 (Constant currency)


fluctuations in foreign currency exchange rates


Q1 - 14 (Actual)











(Unaudited, in thousands)
























Net Revenues

$          143,276


$                           (37)


$     143,239






















(4)

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 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 - 13)




average exchange rates.



























Organic Growth (5)
















































Impact of













March 31,
2013


fluctuations in foreign currency exchange rates


Acquisitions


Organic net

revenue

growth


March 31,
2014


Organic net

revenue

growth rate





(Unaudited, in thousands, except percentages)




















Net Revenues, Three Months Ended

$          129,492


$                        (557)


$        16,909


$            (2,605)


$       143,239


-2.0%
















(5)

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 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
[email protected]

 

PGi has been a global leader in collaboration and virtual meetings for over 20 years. PGi's cloud-based solutions deliver multi-point, real-time virtual collaboration using video, voice, mobile, web streaming and file sharing technologies.

Logo - http://photos.prnewswire.com/prnh/20131203/CL27071LOGO

SOURCE PGi

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
The IoT has the potential to create a renaissance of manufacturing in the US and elsewhere. In his session at 18th Cloud Expo, Florent Solt, CTO and chief architect of Netvibes, will discuss how the expected exponential increase in the amount of data that will be processed, transported, stored, and accessed means there will be a huge demand for smart technologies to deliver it. Florent Solt is the CTO and chief architect of Netvibes. Prior to joining Netvibes in 2007, he co-founded Rift Technol...
If there is anything we have learned by now, is that every business paves their own unique path for releasing software- every pipeline, implementation and practices are a bit different, and DevOps comes in all shapes and sizes. Software delivery practices are often comprised of set of several complementing (or even competing) methodologies – such as leveraging Agile, DevOps and even a mix of ITIL, to create the combination that’s most suitable for your organization and that maximize your busines...
Struggling to keep up with increasing application demand? Learn how Platform as a Service (PaaS) can streamline application development processes and make resource management easy.
New Relic, Inc. has announced a set of new features across the New Relic Software Analytics Cloud that offer IT operations teams increased visibility, and the ability to diagnose and resolve performance problems quickly. The new features further IT operations teams’ ability to leverage data and analytics, as well as drive collaboration and a common, shared understanding between teams. Software teams are under pressure to resolve performance issues quickly and improve availability, as the comple...
The proper isolation of resources is essential for multi-tenant environments. The traditional approach to isolate resources is, however, rather heavyweight. In his session at 18th Cloud Expo, Igor Drobiazko, co-founder of elastic.io, will draw upon their own experience with operating a Docker container-based infrastructure on a large scale and present a lightweight solution for resource isolation using microservices. He will also discuss the implementation of microservices in data and applicat...
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
Join IBM June 8 at 18th Cloud Expo at the Javits Center in New York City, NY, and learn how to innovate like a startup and scale for the enterprise. You need to deliver quality applications faster and cheaper, attract and retain customers with an engaging experience across devices, and seamlessly integrate your enterprise systems. And you can't take 12 months to do it.
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, will discuss how research has demonstrated the value of Machine Learning in delivering next generation analytics to im...
This is not a small hotel event. It is also not a big vendor party where politicians and entertainers are more important than real content. This is Cloud Expo, the world's longest-running conference and exhibition focused on Cloud Computing and all that it entails. If you want serious presentations and valuable insight about Cloud Computing for three straight days, then register now for Cloud Expo.
As you respond to increasing requests for new analytics, you need fast and flexible technology in your arsenal so that you can deploy the right workload to the right platform for the need at hand. Do you need self-service and fast time to value? Do you have data and application control and privacy needs, along with strict SLAs to meet? IBM dashDB™ is data warehouse technology powered by in-memory computing and in-database analytics that are designed for fast results, scalability and more.
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
IoT device adoption is growing at staggering rates, and with it comes opportunity for developers to meet consumer demand for an ever more connected world. Wireless communication is the key part of the encompassing components of any IoT device. Wireless connectivity enhances the device utility at the expense of ease of use and deployment challenges. Since connectivity is fundamental for IoT device development, engineers must understand how to overcome the hurdles inherent in incorporating multipl...