UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM 8-K
CURRENT
REPORT Pursuant
to
Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date of report (Date
of earliest event reported): July 17, 2014
PREMIERE
GLOBAL SERVICES, INC.
(Exact Name of Registrant as Specified in
Its Charter)
GEORGIA
(State or Other Jurisdiction of Incorporation)
| 001-13577 |
59-3074176 |
| (Commission File Number) |
(IRS Employer Identification No.) |
3280
Peachtree Road, NE, Suite 1000, Atlanta, Georgia 30305
| (Address of Principal Executive Offices) |
(Zip Code) |
404-262-8400
(Registrant’s Telephone Number, Including
Area Code)
(Former Name or Former Address, if Changed
Since Last Report)
Check the appropriate
box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition.
On July 17, 2014,
Premiere Global Services, Inc., or PGi, issued a press release reporting its financial results for the quarter ended June 30, 2014.
A copy of the press release is attached as Exhibit 99.1 to this current report on Form 8-K and is incorporated herein by reference.
In accordance with
General Instruction B.2 of Form 8-K, the information included or incorporated in Item 2.02 of this current report, including Exhibit
99.1, is being furnished to the Securities and Exchange Commission and shall not be deemed “filed” for purposes of
Section 18 of the Securities and Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing
under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
| (d) Exhibits |
| |
| 99.1 |
Press Release dated July 17, 2014. |
SIGNATURE
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
| |
PREMIERE GLOBAL SERVICES, INC. |
| |
|
|
| Date: July 17, 2014 |
By: |
/s/ David E. Trine |
| |
|
David E. Trine |
| |
|
Chief Financial Officer
(principal financial and accounting officer) |
EXHIBIT INDEX
| Exhibit 99.1 |
Press Release dated July 17, 2014. |
| |
|
EXHIBIT 99.1
PGi SaaS Products Revenue Up Over 50%
in Second Quarter 2014;
Total Revenues Up Over 9% to $144.3M, Non-GAAP Diluted EPS from Continuing Ops $0.23*
Company Reiterates 2014 Financial Outlook,
Including Accelerated SaaS Growth Investments;
Projects 2014 Free Cash Flow to Exceed $1.00 Per Share*
ATLANTA
– July 17, 2014 – Premiere Global Services, Inc.
(NYSE: PGI), a leading global provider of collaboration software and services for over 20 years, today announced results for the
second quarter ended June 30, 2014.
In the second quarter of 2014, net revenues increased
9.2% to $144.3 million, compared to $132.2 million in the second quarter of 2013. Diluted EPS from continuing operations was
$0.13 in the second quarter of 2014, compared to diluted EPS from continuing operations of $0.17 in the second quarter of
2013. Non-GAAP diluted EPS from continuing operations was $0.23* in the second quarter of 2014, compared to non-GAAP diluted
EPS from continuing operations of $0.20* in the second quarter of 2013.
“We are pleased with the continuing solid trends in our
global business and, in particular, the increasing momentum in sales of our SaaS-based collaboration products,” said Boland
T. Jones, PGi founder, chairman and CEO. “We generated SaaS revenue of approximately $12 million in the second quarter, representing
over 50% year-over-year growth and our highest sequential increase ever in this important revenue category. We ended the quarter
with strong sales pipelines and an annual revenue run-rate of over $48 million from these high-value, high-margin products. Consistent
with our ongoing strategy, we plan to accelerate our investments in driving higher sales of these next-generation collaboration
products this year, as we work to further accelerate the positive transition in our business toward a SaaS model.”
Six Month Results
In the first six months of 2014, net revenues grew nearly 10%
to $287.5 million, compared to $261.7 million in the first six months of 2013. Diluted EPS from continuing operations was $0.24
in the first six months of 2014, compared to diluted EPS from continuing operations of $0.33 in the first six months of 2013. Non-GAAP
diluted EPS from continuing operations was $0.45* in the first six months of 2014, compared to non-GAAP diluted EPS from continuing
operations of $0.39* in the first six months of 2013.
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 it provided on April 24, 2014—net revenues from continuing operations are projected to
be in the range of $565-$575 million and non-GAAP diluted EPS from continuing operations is projected to be in the range of
$0.85-$0.88—and free cash flow is projected to exceed $1.00 per share*. The Company continues to anticipate that it will
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: (888) 205-6705 (U.S. and Canada) or (913) 312-0726 (International), participant passcode 9783896. 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, free cash flow and organic growth.
Management defines "free cash flow" as net cash provided by operating activities from continuing operations, less
capital expenditures. 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 empower business users to 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 | | |
Six Months Ended |
|
| | |
June 30, | | |
June 30, | |
| | |
2014 | | |
2013 | | |
2014 | | |
2013 | |
| | |
| | |
| | |
| | |
| |
| | |
| | |
| | |
| | |
| |
| Net revenues | |
$ | 144,287 | | |
$ | 132,178 | | |
$ | 287,526 | | |
$ | 261,670 | |
| Operating expenses: | |
| | | |
| | | |
| | | |
| | |
| Cost of revenues (exclusive of depreciation and amortization shown | |
| | | |
| | | |
| | | |
| | |
| separately below) | |
| 59,001 | | |
| 56,856 | | |
| 118,543 | | |
| 112,363 | |
| Selling and marketing | |
| 37,593 | | |
| 34,382 | | |
| 75,429 | | |
| 68,545 | |
| General and administrative (exclusive of expenses | |
| | | |
| | | |
| | | |
| | |
| shown separately below) | |
| 19,070 | | |
| 16,186 | | |
| 37,005 | | |
| 31,679 | |
| Research and development | |
| 4,616 | | |
| 3,831 | | |
| 9,121 | | |
| 7,554 | |
| Excise and sales tax expense | |
| - | | |
| 77 | | |
| - | | |
| 77 | |
| Depreciation | |
| 8,885 | | |
| 8,331 | | |
| 17,551 | | |
| 16,570 | |
| Amortization | |
| 2,484 | | |
| 392 | | |
| 4,967 | | |
| 854 | |
| Restructuring costs | |
| - | | |
| 131 | | |
| - | | |
| 201 | |
| Asset impairments | |
| - | | |
| 54 | | |
| - | | |
| 198 | |
| Net legal settlements and related expenses | |
| - | | |
| 220 | | |
| - | | |
| 313 | |
| Acquisition-related costs | |
| 1,786 | | |
| 212 | | |
| 3,691 | | |
| 239 | |
| Total operating expenses | |
| 133,435 | | |
| 120,672 | | |
| 266,307 | | |
| 238,593 | |
| | |
| | | |
| | | |
| | | |
| | |
| Operating income | |
| 10,852 | | |
| 11,506 | | |
| 21,219 | | |
| 23,077 | |
| | |
| | | |
| | | |
| | | |
| | |
| Other (expense) income: | |
| | | |
| | | |
| | | |
| | |
| Interest expense | |
| (2,385 | ) | |
| (1,527 | ) | |
| (4,485 | ) | |
| (3,328 | ) |
| Interest income | |
| 11 | | |
| 50 | | |
| 20 | | |
| 71 | |
| Other, net | |
| (36 | ) | |
| 188 | | |
| 255 | | |
| 218 | |
| Total other expense | |
| (2,410 | ) | |
| (1,289 | ) | |
| (4,210 | ) | |
| (3,039 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Income from continuing operations before income taxes | |
| 8,442 | | |
| 10,217 | | |
| 17,009 | | |
| 20,038 | |
| Income tax expense | |
| 2,309 | | |
| 2,109 | | |
| 5,606 | | |
| 4,749 | |
| Net income from continuing operations | |
| 6,133 | | |
| 8,108 | | |
| 11,403 | | |
| 15,289 | |
| | |
| | | |
| | | |
| | | |
| | |
| Loss from discontinued operations, net of taxes | |
| (118 | ) | |
| (133 | ) | |
| (183 | ) | |
| (236 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Net income | |
$ | 6,015 | | |
$ | 7,975 | | |
$ | 11,220 | | |
$ | 15,053 | |
| | |
| | | |
| | | |
| | | |
| | |
| BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING | |
| 45,859 | | |
| 46,204 | | |
| 46,121 | | |
| 46,146 | |
| | |
| | | |
| | | |
| | | |
| | |
| Basic net income (loss) per share (1) | |
| | | |
| | | |
| | | |
| | |
| Continuing operations | |
$ | 0.13 | | |
$ | 0.18 | | |
$ | 0.25 | | |
$ | 0.33 | |
| Discontinued operations | |
| - | | |
| - | | |
| - | | |
| (0.01 | ) |
| Net income per share | |
$ | 0.13 | | |
$ | 0.17 | | |
$ | 0.24 | | |
$ | 0.33 | |
| | |
| | | |
| | | |
| | | |
| | |
| DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING | |
| 46,550 | | |
| 46,720 | | |
| 46,784 | | |
| 46,618 | |
| | |
| | | |
| | | |
| | | |
| | |
| Diluted net income (loss) per share | |
| | | |
| | | |
| | | |
| | |
| Continuing operations | |
$ | 0.13 | | |
$ | 0.17 | | |
$ | 0.24 | | |
$ | 0.33 | |
| Discontinued operations | |
| - | | |
| - | | |
| - | | |
| (0.01 | ) |
| Net income per share | |
$ | 0.13 | | |
$ | 0.17 | | |
$ | 0.24 | | |
$ | 0.32 | |
| (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)
| | |
June 30, | | |
December 31, | |
| | |
2014 | | |
2013 | |
| | |
| | |
| |
| ASSETS | |
| | |
| |
| CURRENT ASSETS | |
| | | |
| | |
| Cash and equivalents | |
$ | 31,926 | | |
$ | 44,955 | |
| Accounts receivable (less allowances of $768 and $760, respectively) | |
| 88,465 | | |
| 78,481 | |
| Prepaid expenses and other current assets | |
| 15,895 | | |
| 22,645 | |
| Income taxes receivable | |
| 3,712 | | |
| 2,316 | |
| Deferred income taxes, net | |
| 692 | | |
| 4,390 | |
| Total current assets | |
| 140,690 | | |
| 152,787 | |
| | |
| | | |
| | |
| PROPERTY AND EQUIPMENT, NET | |
| 105,894 | | |
| 105,724 | |
| | |
| | | |
| | |
| OTHER ASSETS | |
| | | |
| | |
| Goodwill | |
| 341,524 | | |
| 341,382 | |
| Intangibles, net of amortization | |
| 75,041 | | |
| 78,637 | |
| Deferred income taxes, net | |
| 2,403 | | |
| 1,957 | |
| Other assets | |
| 17,382 | | |
| 17,621 | |
| TOTAL ASSETS | |
$ | 682,934 | | |
$ | 698,108 | |
| | |
| | | |
| | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |
| | | |
| | |
| CURRENT LIABILITIES | |
| | | |
| | |
| Accounts payable | |
$ | 62,554 | | |
$ | 51,994 | |
| Income taxes payable | |
| 2,423 | | |
| 2,648 | |
| Accrued taxes, other than income taxes | |
| 9,271 | | |
| 11,190 | |
| Accrued expenses | |
| 34,348 | | |
| 34,402 | |
| Current maturities of long-term debt and capital lease obligations | |
| 1,821 | | |
| 1,719 | |
| Accrued restructuring costs | |
| 544 | | |
| 2,104 | |
| Deferred income taxes, net | |
| 28 | | |
| 171 | |
| Total current liabilities | |
| 110,989 | | |
| 104,228 | |
| | |
| | | |
| | |
| LONG-TERM LIABILITIES | |
| | | |
| | |
| Long-term debt and capital lease obligations | |
| 251,937 | | |
| 272,467 | |
| Accrued restructuring costs | |
| - | | |
| 77 | |
| Accrued expenses | |
| 29,587 | | |
| 29,570 | |
| Deferred income taxes, net | |
| 19,334 | | |
| 18,881 | |
| Total long-term liabilities | |
| 300,858 | | |
| 320,995 | |
| | |
| | | |
| | |
| SHAREHOLDERS' EQUITY | |
| | | |
| | |
| Common stock, $0.01 par value; 150,000,000 shares authorized, | |
| | | |
| | |
| 47,375,315 and 48,338,335 shares issued and outstanding, respectively | |
| 479 | | |
| 483 | |
| Additional paid-in capital | |
| 444,691 | | |
| 457,913 | |
| Accumulated other comprehensive gain | |
| 11,377 | | |
| 11,169 | |
| Accumulated deficit | |
| (185,460 | ) | |
| (196,680 | ) |
| Total shareholders' equity | |
| 271,087 | | |
| 272,885 | |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | |
$ | 682,934 | | |
$ | 698,108 | |
PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Unaudited, in thousands)
| | |
Six Months Ended | |
| | |
June 30, | |
| | |
2014 | | |
2013 | |
| | |
| | |
| |
| CASH FLOWS FROM OPERATING ACTIVITIES | |
| | | |
| | |
| Net income | |
$ | 11,220 | | |
$ | 15,053 | |
| Loss from discontinued operations, net of taxes | |
| 183 | | |
| 236 | |
| Net income from continuing operations | |
| 11,403 | | |
| 15,289 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | |
| | | |
| | |
| Depreciation | |
| 17,551 | | |
| 16,570 | |
| Amortization | |
| 4,967 | | |
| 854 | |
| Amortization of debt issuance costs | |
| 322 | | |
| 296 | |
| Net legal settlements and related expenses | |
| - | | |
| 313 | |
| Payments for legal settlements and related expenses | |
| - | | |
| (91 | ) |
| Deferred income taxes | |
| 908 | | |
| 1,741 | |
| Restructuring costs | |
| - | | |
| 201 | |
| Payments for restructuring costs | |
| (1,659 | ) | |
| (922 | ) |
| Asset impairments | |
| - | | |
| 198 | |
| Equity-based compensation | |
| 4,884 | | |
| 3,636 | |
| Excess tax benefits from share-based payment arrangements | |
| (395 | ) | |
| (358 | ) |
| Provision for doubtful accounts | |
| 362 | | |
| 360 | |
| Acquisition-related costs | |
| 3,691 | | |
| - | |
| Cash paid for acquisition-related costs | |
| (3,779 | ) | |
| - | |
| Changes in working capital | |
| 812 | | |
| (8,189 | ) |
| Net cash provided by operating activities from continuing operations | |
| 39,067 | | |
| 29,898 | |
| Net cash used in operating activities from discontinued operations | |
| (165 | ) | |
| (257 | ) |
| Net cash provided by operating activities | |
| 38,902 | | |
| 29,641 | |
| | |
| | | |
| | |
| CASH FLOWS FROM INVESTING ACTIVITIES | |
| | | |
| | |
| Capital expenditures | |
| (15,520 | ) | |
| (17,307 | ) |
| Other investing activities, net | |
| 2,052 | | |
| (625 | ) |
| Business acquisitions, net of cash acquired | |
| 66 | | |
| - | |
| Net cash used in investing activities from continuing operations | |
| (13,402 | ) | |
| (17,932 | ) |
| Net cash used in investing activities from discontinued operations | |
| - | | |
| - | |
| Net cash used in investing activities | |
| (13,402 | ) | |
| (17,932 | ) |
| | |
| | | |
| | |
| | |
| | | |
| | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |
| | | |
| | |
| Principal payments under borrowing arrangements | |
| (83,447 | ) | |
| (31,164 | ) |
| Proceeds from borrowing arrangements | |
| 62,000 | | |
| 26,000 | |
| Excess tax benefits of share-based payment arrangements | |
| 395 | | |
| 358 | |
| Purchases and retirement of treasury stock, at cost | |
| (18,988 | ) | |
| (1,758 | ) |
| Exercise of stock options | |
| 963 | | |
| - | |
| Net cash used in financing activities from continuing operations | |
| (39,077 | ) | |
| (6,564 | ) |
| Net cash used in financing activities from discontinued operations | |
| - | | |
| - | |
| Net cash used in financing activities | |
| (39,077 | ) | |
| (6,564 | ) |
| | |
| | | |
| | |
| Effect of exchange rate changes on cash and equivalents | |
| 548 | | |
| (830 | ) |
| | |
| | | |
| | |
| NET (DECREASE) INCREASE IN CASH AND EQUIVALENTS | |
| (13,029 | ) | |
| 4,315 | |
| CASH AND EQUIVALENTS, beginning of period | |
| 44,955 | | |
| 20,976 | |
| CASH AND EQUIVALENTS, end of period | |
$ | 31,926 | | |
$ | 25,291 | |
PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
(Unaudited, in thousands, except per
share data)
| | |
Three Months Ended | | |
Six Months Ended | |
| | |
June 30, | | |
June 30, | |
| | |
2014 | | |
2013 | | |
2014 | | |
2013 | |
| | |
| | |
|
|
|
|
| |
| Non-GAAP Operating Income (1) | |
| | | |
| | | |
| | | |
| | |
| Operating income, as reported | |
$ | 10,852 | | |
$ | 11,506 | | |
$ | 21,219 | | |
$ | 23,077 | |
| Restructuring costs | |
| - | | |
| 131 | | |
| - | | |
| 201 | |
| Excise and sales tax expense | |
| - | | |
| 77 | | |
| - | | |
| 77 | |
| Asset impairments | |
| - | | |
| 54 | | |
| - | | |
| 198 | |
| Net legal settlements and related expenses | |
| - | | |
| 220 | | |
| - | | |
| 313 | |
| Acquisition-related costs | |
| 1,786 | | |
| 212 | | |
| 3,691 | | |
| 239 | |
| Equity-based compensation | |
| 2,657 | | |
| 1,962 | | |
| 4,884 | | |
| 3,636 | |
| Amortization | |
| 2,484 | | |
| 392 | | |
| 4,967 | | |
| 854 | |
| Non-GAAP operating income | |
$ | 17,779 | | |
$ | 14,554 | | |
$ | 34,761 | | |
$ | 28,595 | |
| | |
| | | |
| | | |
| | | |
| | |
| Non-GAAP Net Income from Continuing Operations (1) | |
| | | |
| | | |
| | | |
| | |
| Net income from continuing operations, as reported | |
$ | 6,133 | | |
$ | 8,108 | | |
$ | 11,403 | | |
$ | 15,289 | |
| Elimination of non-recurring tax adjustments and related interest | |
| (167 | ) | |
| (905 | ) | |
| 474 | | |
| (1,162 | ) |
| Restructuring costs | |
| - | | |
| 92 | | |
| - | | |
| 142 | |
| Excise and sales tax expense | |
| - | | |
| 54 | | |
| - | | |
| 54 | |
| Asset impairments | |
| - | | |
| 38 | | |
| - | | |
| 140 | |
| Net legal settlements and related expenses | |
| - | | |
| 155 | | |
| - | | |
| 221 | |
| Acquisition-related costs | |
| 1,232 | | |
| 149 | | |
| 2,547 | | |
| 168 | |
| Equity-based compensation | |
| 1,833 | | |
| 1,383 | | |
| 3,370 | | |
| 2,563 | |
| Amortization | |
| 1,714 | | |
| 276 | | |
| 3,427 | | |
| 602 | |
| Non-GAAP net income from continuing operations | |
$ | 10,745 | | |
$ | 9,350 | | |
$ | 21,221 | | |
$ | 18,017 | |
| | |
| | | |
| | | |
| | | |
| | |
| Non-GAAP Diluted EPS from Continuing Operations (1) (2) | |
| | | |
| | | |
| | | |
| | |
| Diluted net income per share from continuing operations, as reported | |
$ | 0.13 | | |
$ | 0.17 | | |
$ | 0.24 | | |
$ | 0.33 | |
| Elimination of non-recurring tax adjustments and related interest | |
| - | | |
| (0.02 | ) | |
| 0.01 | | |
| (0.02 | ) |
| Restructuring costs | |
| - | | |
| - | | |
| - | | |
| - | |
| Excise and sales tax expense | |
| - | | |
| - | | |
| - | | |
| - | |
| Asset impairments | |
| - | | |
| - | | |
| - | | |
| - | |
| Net legal settlements and related expenses | |
| - | | |
| - | | |
| - | | |
| - | |
| Acquisition-related costs | |
| 0.03 | | |
| - | | |
| 0.05 | | |
| - | |
| Equity-based compensation | |
| 0.04 | | |
| 0.03 | | |
| 0.07 | | |
| 0.05 | |
| Amortization | |
| 0.04 | | |
| 0.01 | | |
| 0.07 | | |
| 0.01 | |
| Non-GAAP diluted EPS from continuing operations | |
$ | 0.23 | | |
$ | 0.20 | | |
$ | 0.45 | | |
$ | 0.39 | |
| (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 and related interest, restructuring costs, excise and sales tax expense, 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 | | |
| |
| | |
Q2 - 14
(Constant currency) | | |
fluctuations in
foreign currency
exchange rates | | |
Q2 - 14
(Actual) | |
| | |
(Unaudited, in thousands, except per share data) | |
| | |
| | |
| | |
| |
| Net Revenues | |
$ | 143,185 | | |
$ | 1,102 | | |
$ | 144,287 | |
| North America Net Revenue | |
$ | 89,645 | | |
$ | (253 | ) | |
$ | 89,392 | |
| Europe Net Revenue | |
$ | 36,646 | | |
$ | 1,643 | | |
$ | 38,289 | |
| Asia Pacific Net Revenue | |
$ | 16,894 | | |
$ | (288 | ) | |
$ | 16,606 | |
| Non-GAAP Operating Income | |
$ | 17,534 | | |
$ | 245 | | |
$ | 17,779 | |
| Non-GAAP Net Income from Continuing Operations | |
$ | 10,803 | | |
$ | (58 | ) | |
$ | 10,745 | |
| Non-GAAP Diluted EPS from Continuing Operations | |
$ | 0.23 | | |
$ | - | | |
$ | 0.23 | |
| (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 (Q2 - 13) average exchange rates. |
Sequential Quarter Constant Currency Adjustments (4)
| | |
| | |
Impact of | | |
| |
| | |
Q2 - 14
(Constant
currency) | | |
fluctuations in
foreign currency
exchange rates | | |
Q2 - 14
(Actual) | |
| | |
(Unaudited, in thousands) | |
| | |
| | | |
| | | |
| | |
| Net Revenues | |
$ | 143,785 | | |
$ | 502 | | |
$ | 144,287 | |
| (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 (Q1 - 14) average
exchange rates. |
Organic Growth (5)
| | |
| | |
Impact of | | |
| | |
| | |
| | |
| |
| | |
June 30,
2013 | | |
fluctuations in foreign currency exchange rates | | |
Acquisitions | | |
Organic net revenue
growth | | |
June 30,
2014 | | |
Organic net revenue
growth rate | |
| | |
(Unaudited, in thousands, except percentages) | |
| | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| Net Revenues, Three Months Ended | |
$ | 132,178 | | |
$ | 548 | | |
$ | 16,689 | | |
$ | (5,128 | ) | |
$ | 144,287 | | |
| -3.9 | % |
| Net Revenues, Six Months Ended | |
$ | 261,670 | | |
$ | (9 | ) | |
$ | 33,598 | | |
$ | (7,733 | ) | |
| 287,526 | | |
| -3.0 | % |
| (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
sean.obrien@pgi.com
