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): October 23, 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 October 23, 2014,
Premiere Global Services, Inc., or PGi, issued a press release reporting its financial results for the quarter ended September
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 October 23, 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: October 23, 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 October 23, 2014. |
EXHIBIT 99.1
Media and Investor Contact:
Sean O’Brien
(404) 262-8462
sean.obrien@pgi.com
PGi Milestone:
SaaS Products Hit $66 Million Annual Revenue Run-Rate,
Exceeding 10% of Consolidated Revenues Run-Rate
PGi’s
Transition Accelerates, with Over 70% of SaaS Sales to Existing Customer Base;
Third Quarter Revenues Up Nearly 8% to $140.4M; Non-GAAP Diluted EPS
from Continuing Ops $0.22*
ATLANTA – October 23, 2014 – Premiere
Global Services, Inc. (NYSE: PGI), the world’s largest pure-play
provider of collaboration software and services, today announced results for the third quarter ended September 30, 2014.
In the third quarter of 2014, net revenues increased 7.5% to
$140.4 million, compared to $130.6 million in the third quarter of 2013. Diluted EPS from continuing operations was $0.06 in the
third quarter of 2014, compared to diluted EPS from continuing operations of $0.10 in the third quarter of 2013. Non-GAAP diluted
EPS from continuing operations was $0.22* in the third quarter of 2014, compared to non-GAAP diluted EPS from continuing operations
of $0.20* in the third quarter of 2013.
“The last few months have been among the most important
in PGi’s history, with continuing strong growth in our core software applications, iMeet® and GlobalMeet®, and the
completion of two strategic acquisitions that expand our collaboration portfolio,” said Boland T. Jones, PGi founder, chairman
and CEO. “With our acquisitions of TalkPoint and Central Desktop, PGi offers a unified collaboration platform that enables
businesses to work how and when they want—in real-time or near-time, whether in teams, large groups or one-on-one. The acquisitions
further our transition to a SaaS model, increasing our combined SaaS annual revenue run-rate to approximately $66 million, or over
10 percent of our total revenue run-rate—up from $48 million at the end of the second quarter.”
Recent Accomplishments
| · | Acquired TalkPoint, a leading provider of webcasting software and services in September; |
| · | Acquired Central Desktop, a leading cloud-based team workspace platform in October; |
| · | Integrated PGi's global hybrid IP audio conferencing network with Microsoft® Lync® Server 2013; |
| · | Increased capacity, extended term and improved pricing and covenants of our credit facility; |
| · | Announced a strategic alliance with Thinking Phone Networks to bring iMeet to its UCaaS customers; |
| · | PGi and iMeet awarded gold and silver Stevie® Awards for Company of the Year and Android App of the Year;
and |
| · | Agenday won a platinum award from the Best Mobile App Awards for best mobile calendar app. |
Nine-Month Results
In the first nine months of 2014, net revenues grew 9.1% to
$427.9 million, compared to $392.2 million in the first nine months of 2013. Diluted EPS from continuing operations was $0.30 in
the first nine months of 2014, compared to diluted EPS from continuing operations of $0.43 in the first nine months of 2013. Non-GAAP
diluted EPS from continuing operations was $0.68* in the first nine months of 2014, compared to non-GAAP diluted EPS from continuing
operations of $0.58* in the first nine 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, PGi anticipates that results for 2014 will be within the following financial outlook ranges: net revenues from
continuing operations are projected to be in the range of $568-$571 million and non-GAAP diluted EPS from continuing operations
is projected to be in the range of $0.87-$0.88.
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) 278-8459 (U.S. and Canada) or (913) 312-1489 (International), participant passcode 9822202. 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 tables 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
is the world’s largest pure-play provider of collaboration software and services. PGi’s unified collaboration platform
empowers business users and teams to connect, share ideas and manage projects with the simplicity and everywhere-access of the
latest cloud technologies. PGi has a global presence in 25 countries, and its award-winning solutions provide a collaborative
advantage to nearly 50,000 enterprise customers, including 75% of the Fortune 100™. In the last five years, PGi has helped
over a billion people worldwide connect, collaborate and get work done—in teams, large groups and one-on-one.
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 | | |
Nine Months Ended | |
| | |
September 30, | | |
September 30, | |
| | |
2014 | | |
2013 | | |
2014 | | |
2013 | |
| | |
| | |
| | |
| | |
| |
| Net revenues | |
$ | 140,383 | | |
$ | 130,570 | | |
$ | 427,909 | | |
$ | 392,240 | |
| Operating expenses: | |
| | | |
| | | |
| | | |
| | |
| Cost of revenues (exclusive of depreciation and amortization shown separately below) | |
| 57,965 | | |
| 56,203 | | |
| 176,508 | | |
| 168,566 | |
| Selling and marketing | |
| 36,813 | | |
| 33,379 | | |
| 112,242 | | |
| 101,924 | |
| General and administrative (exclusive of expenses
shown separately below) | |
| 17,810 | | |
| 15,605 | | |
| 54,815 | | |
| 47,284 | |
| Research and development | |
| 5,534 | | |
| 4,145 | | |
| 14,655 | | |
| 11,699 | |
| Excise and sales tax expense | |
| - | | |
| 1 | | |
| - | | |
| 78 | |
| Depreciation | |
| 8,697 | | |
| 8,459 | | |
| 26,248 | | |
| 25,029 | |
| Amortization | |
| 2,582 | | |
| 855 | | |
| 7,549 | | |
| 1,709 | |
| Restructuring costs | |
| 68 | | |
| 240 | | |
| 68 | | |
| 441 | |
| Asset impairments | |
| 4,938 | | |
| 18 | | |
| 4,938 | | |
| 216 | |
| Net legal settlements and related expenses | |
| 172 | | |
| 278 | | |
| 172 | | |
| 591 | |
| Acquisition-related costs | |
| 2,147 | | |
| 2,805 | | |
| 5,838 | | |
| 3,044 | |
| Total operating expenses | |
| 136,726 | | |
| 121,988 | | |
| 403,033 | | |
| 360,581 | |
| | |
| | | |
| | | |
| | | |
| | |
| Operating income | |
| 3,657 | | |
| 8,582 | | |
| 24,876 | | |
| 31,659 | |
| | |
| | | |
| | | |
| | | |
| | |
| Other (expense) income: | |
| | | |
| | | |
| | | |
| | |
| Interest expense | |
| (2,133 | ) | |
| (1,599 | ) | |
| (6,618 | ) | |
| (4,927 | ) |
| Interest income | |
| 5 | | |
| 22 | | |
| 25 | | |
| 93 | |
| Other, net | |
| 741 | | |
| (88 | ) | |
| 996 | | |
| 130 | |
| Total other expense, net | |
| (1,387 | ) | |
| (1,665 | ) | |
| (5,597 | ) | |
| (4,704 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Income from continuing operations before income taxes | |
| 2,270 | | |
| 6,917 | | |
| 19,279 | | |
| 26,955 | |
| Income tax (benefit) expense | |
| (376 | ) | |
| 2,072 | | |
| 5,230 | | |
| 6,821 | |
| Net income from continuing operations | |
| 2,646 | | |
| 4,845 | | |
| 14,049 | | |
| 20,134 | |
| | |
| | | |
| | | |
| | | |
| | |
| Loss from discontinued operations, net of taxes | |
| (100 | ) | |
| (182 | ) | |
| (283 | ) | |
| (418 | ) |
| | |
| | | |
| | | |
| | | |
| | |
| Net income | |
$ | 2,546 | | |
$ | 4,663 | | |
$ | 13,766 | | |
$ | 19,716 | |
| | |
| | | |
| | | |
| | | |
| | |
| BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING | |
| 45,162 | | |
| 46,313 | | |
| 45,797 | | |
| 46,202 | |
| | |
| | | |
| | | |
| | | |
| | |
| Basic net income (loss) per share (1) | |
| | | |
| | | |
| | | |
| | |
| Continuing operations | |
$ | 0.06 | | |
$ | 0.10 | | |
$ | 0.31 | | |
$ | 0.44 | |
| Discontinued operations | |
| - | | |
| - | | |
| (0.01 | ) | |
| (0.01 | ) |
| Net income per share | |
$ | 0.06 | | |
$ | 0.10 | | |
$ | 0.30 | | |
$ | 0.43 | |
| | |
| | | |
| | | |
| | | |
| | |
| DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING | |
| 45,898 | | |
| 46,818 | | |
| 46,485 | | |
| 46,685 | |
| | |
| | | |
| | | |
| | | |
| | |
| Diluted net income (loss) per share | |
| | | |
| | | |
| | | |
| | |
| Continuing operations | |
$ | 0.06 | | |
$ | 0.10 | | |
$ | 0.30 | | |
$ | 0.43 | |
| Discontinued operations | |
| - | | |
| - | | |
| (0.01 | ) | |
| (0.01 | ) |
| Net income per share | |
$ | 0.06 | | |
$ | 0.10 | | |
$ | 0.30 | | |
$ | 0.42 | |
| (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)
| | |
September 30, | | |
December 31, | |
| | |
2014 | | |
2013 | |
| | |
| | |
| |
| ASSETS | |
| | | |
| | |
| CURRENT ASSETS | |
| | | |
| | |
| Cash and equivalents | |
$ | 29,505 | | |
$ | 44,955 | |
| Accounts receivable (less allowances of $597 and $760, respectively) | |
| 88,478 | | |
| 78,481 | |
| Prepaid expenses and other current assets | |
| 17,275 | | |
| 22,645 | |
| Income taxes receivable | |
| 2,732 | | |
| 2,316 | |
| Deferred income taxes, net | |
| 5,251 | | |
| 4,390 | |
| Total current assets | |
| 143,241 | | |
| 152,787 | |
| | |
| | | |
| | |
| PROPERTY AND EQUIPMENT, NET | |
| 101,747 | | |
| 105,724 | |
| | |
| | | |
| | |
| OTHER ASSETS | |
| | | |
| | |
| Goodwill | |
| 369,251 | | |
| 341,382 | |
| Intangibles, net of amortization | |
| 97,419 | | |
| 78,637 | |
| Deferred income taxes, net | |
| 1,810 | | |
| 1,957 | |
| Other assets | |
| 18,651 | | |
| 17,621 | |
| TOTAL ASSETS | |
$ | 732,119 | | |
$ | 698,108 | |
| | |
| | | |
| | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |
| | | |
| | |
| CURRENT LIABILITIES | |
| | | |
| | |
| Accounts payable | |
$ | 56,116 | | |
$ | 51,994 | |
| Income taxes payable | |
| 2,749 | | |
| 2,648 | |
| Accrued taxes, other than income taxes | |
| 18,597 | | |
| 11,190 | |
| Accrued expenses | |
| 34,208 | | |
| 34,402 | |
| Current maturities of long-term debt and capital lease obligations | |
| 1,781 | | |
| 1,719 | |
| Accrued restructuring costs | |
| 424 | | |
| 2,104 | |
| Deferred income taxes, net | |
| 37 | | |
| 171 | |
| Total current liabilities | |
| 113,912 | | |
| 104,228 | |
| | |
| | | |
| | |
| LONG-TERM LIABILITIES | |
| | | |
| | |
| Long-term debt and capital lease obligations | |
| 310,873 | | |
| 272,467 | |
| Accrued restructuring costs | |
| - | | |
| 77 | |
| Accrued expenses | |
| 25,754 | | |
| 29,570 | |
| Deferred income taxes, net | |
| 21,400 | | |
| 18,881 | |
| Total long-term liabilities | |
| 358,027 | | |
| 320,995 | |
| | |
| | | |
| | |
| SHAREHOLDERS' EQUITY | |
| | | |
| | |
| Common stock, $0.01 par value; 150,000,000 shares authorized, 47,082,520 and 48,338,335 shares issued and outstanding, respectively | |
| 472 | | |
| 483 | |
| Additional paid-in capital | |
| 440,654 | | |
| 457,913 | |
| Accumulated other comprehensive gain | |
| 1,968 | | |
| 11,169 | |
| Accumulated deficit | |
| (182,914 | ) | |
| (196,680 | ) |
| Total shareholders' equity | |
| 260,180 | | |
| 272,885 | |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | |
$ | 732,119 | | |
$ | 698,108 | |
PREMIERE GLOBAL SERVICES,
INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS
(Unaudited, in thousands)
| | |
Nine Months Ended | |
| | |
September 30, | |
| | |
2014 | | |
2013 | |
| | |
| | |
| |
| CASH FLOWS FROM OPERATING ACTIVITIES | |
| | | |
| | |
| Net income | |
$ | 13,766 | | |
$ | 19,716 | |
| Loss from discontinued operations, net of taxes | |
| 283 | | |
| 418 | |
| Net income from continuing operations | |
| 14,049 | | |
| 20,134 | |
| Adjustments to reconcile net income to net cash provided by operating activities: | |
| | | |
| | |
| Depreciation | |
| 26,248 | | |
| 25,029 | |
| Amortization | |
| 7,549 | | |
| 1,709 | |
| Amortization of debt issuance costs | |
| 491 | | |
| 450 | |
| Net legal settlements and related expenses | |
| 172 | | |
| 591 | |
| Payments for legal settlements and related expenses | |
| (170 | ) | |
| (272 | ) |
| Deferred income taxes | |
| 1,096 | | |
| 2,182 | |
| Restructuring costs | |
| 68 | | |
| 441 | |
| Payments for restructuring costs | |
| (1,816 | ) | |
| (1,158 | ) |
| Asset impairments | |
| 4,938 | | |
| 216 | |
| Equity-based compensation | |
| 7,544 | | |
| 5,694 | |
| Excess tax benefits from share-based payment arrangements | |
| (448 | ) | |
| (360 | ) |
| Provision for doubtful accounts | |
| 203 | | |
| 214 | |
| Acquisition-related costs | |
| 5,838 | | |
| 3,044 | |
| Cash paid for acquisition-related costs | |
| (5,411 | ) | |
| - | |
| Changes in working capital, net of business acquisitions | |
| (6,460 | ) | |
| (1,421 | ) |
| Net cash provided by operating activities from continuing operations | |
| 53,891 | | |
| 56,493 | |
| Net cash used in operating activities from discontinued operations | |
| (259 | ) | |
| (493 | ) |
| Net cash provided by operating activities | |
| 53,632 | | |
| 56,000 | |
| | |
| | | |
| | |
| CASH FLOWS FROM INVESTING ACTIVITIES | |
| | | |
| | |
| Capital expenditures | |
| (26,562 | ) | |
| (24,794 | ) |
| Business acquisitions, net of cash acquired | |
| (55,517 | ) | |
| (50,873 | ) |
| Other investing activities, net | |
| 2,046 | | |
| (457 | ) |
| Net cash used in investing activities from continuing operations | |
| (80,033 | ) | |
| (76,124 | ) |
| Net cash used in investing activities from discontinued operations | |
| - | | |
| - | |
| Net cash used in investing activities | |
| (80,033 | ) | |
| (76,124 | ) |
| | |
| | | |
| | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |
| | | |
| | |
| Principal payments under borrowing arrangements | |
| (99,509 | ) | |
| (55,494 | ) |
| Proceeds from borrowing arrangements | |
| 137,000 | | |
| 94,750 | |
| Payments of debt issuance costs | |
| (1,060 | ) | |
| (1,253 | ) |
| Excess tax benefits of share-based payment arrangements | |
| 448 | | |
| 360 | |
| Purchases and retirement of treasury stock, at cost | |
| (25,844 | ) | |
| (2,087 | ) |
| Exercise of stock options | |
| 963 | | |
| - | |
| Net cash provided by financing activities from continuing operations | |
| 11,998 | | |
| 36,276 | |
| Net cash provided by financing activities from discontinued operations | |
| - | | |
| - | |
| Net cash provided by financing activities | |
| 11,998 | | |
| 36,276 | |
| | |
| | | |
| | |
| Effect of exchange rate changes on cash and equivalents | |
| (1,047 | ) | |
| (56 | ) |
| | |
| | | |
| | |
| NET (DECREASE) INCREASE IN CASH AND EQUIVALENTS | |
| (15,450 | ) | |
| 16,096 | |
| CASH AND EQUIVALENTS, beginning of period | |
| 44,955 | | |
| 20,976 | |
| CASH AND EQUIVALENTS, end of period | |
$ | 29,505 | | |
$ | 37,072 | |
PREMIERE GLOBAL SERVICES,
INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
(Unaudited, in thousands,
except per share data)
| | |
Three Months Ended | | |
Nine Months Ended | |
| | |
September 30, | | |
September 30, | |
| | |
2014 | | |
2013 | | |
2014 | | |
2013 | |
| | |
| | |
| |
| Non-GAAP Operating Income (1) | |
| | | |
| | | |
| | | |
| | |
| Operating income, as reported | |
$ | 3,657 | | |
$ | 8,582 | | |
$ | 24,876 | | |
$ | 31,659 | |
| Restructuring costs | |
| 68 | | |
| 240 | | |
| 68 | | |
| 441 | |
| Excise and sales tax expense | |
| - | | |
| 1 | | |
| - | | |
| 78 | |
| Asset impairments | |
| 4,938 | | |
| 18 | | |
| 4,938 | | |
| 216 | |
| Net legal settlements and related expenses | |
| 172 | | |
| 278 | | |
| 172 | | |
| 591 | |
| Acquisition-related costs | |
| 2,147 | | |
| 2,805 | | |
| 5,838 | | |
| 3,044 | |
| Equity-based compensation | |
| 2,660 | | |
| 2,058 | | |
| 7,544 | | |
| 5,694 | |
| Amortization | |
| 2,582 | | |
| 855 | | |
| 7,549 | | |
| 1,709 | |
| Non-GAAP operating income | |
$ | 16,224 | | |
$ | 14,837 | | |
$ | 50,985 | | |
$ | 43,432 | |
| | |
| | | |
| | | |
| | | |
| | |
| Non-GAAP Net Income from Continuing Operations (1) | |
| | | |
| | | |
| | | |
| | |
| Net income from continuing operations, as reported | |
$ | 2,646 | | |
$ | 4,845 | | |
$ | 14,049 | | |
$ | 20,134 | |
| Elimination of non-recurring tax adjustments and related interest | |
| (1,158 | ) | |
| 31 | | |
| (683 | ) | |
| (1,131 | ) |
| Restructuring costs | |
| 47 | | |
| 169 | | |
| 47 | | |
| 311 | |
| Excise and sales tax expense | |
| - | | |
| 1 | | |
| - | | |
| 55 | |
| Asset impairments | |
| 3,407 | | |
| 13 | | |
| 3,407 | | |
| 152 | |
| Net legal settlements and related expenses | |
| 119 | | |
| 196 | | |
| 119 | | |
| 417 | |
| Acquisition-related costs | |
| 1,481 | | |
| 1,978 | | |
| 4,028 | | |
| 2,146 | |
| Equity-based compensation | |
| 1,835 | | |
| 1,451 | | |
| 5,205 | | |
| 4,014 | |
| Amortization | |
| 1,782 | | |
| 603 | | |
| 5,209 | | |
| 1,205 | |
| Non-GAAP net income from continuing operations | |
$ | 10,159 | | |
$ | 9,287 | | |
$ | 31,381 | | |
$ | 27,303 | |
| | |
| | | |
| | | |
| | | |
| | |
| Non-GAAP Diluted EPS from Continuing Operations (1) (2) | |
| | | |
| | | |
| | | |
| | |
| Diluted net income per share from continuing operations, as reported | |
$ | 0.06 | | |
$ | 0.10 | | |
$ | 0.30 | | |
$ | 0.43 | |
| Elimination of non-recurring tax adjustments and related interest | |
| (0.03 | ) | |
| - | | |
| (0.01 | ) | |
| (0.02 | ) |
| Restructuring costs | |
| - | | |
| - | | |
| - | | |
| 0.01 | |
| Excise and sales tax expense | |
| - | | |
| - | | |
| - | | |
| - | |
| Asset impairments | |
| 0.07 | | |
| - | | |
| 0.07 | | |
| - | |
| Net legal settlements and related expenses | |
| - | | |
| - | | |
| - | | |
| 0.01 | |
| Acquisition-related costs | |
| 0.03 | | |
| 0.04 | | |
| 0.09 | | |
| 0.05 | |
| Equity-based compensation | |
| 0.04 | | |
| 0.03 | | |
| 0.11 | | |
| 0.09 | |
| Amortization | |
| 0.04 | | |
| 0.01 | | |
| 0.11 | | |
| 0.03 | |
| Non-GAAP diluted EPS from continuing operations | |
$ | 0.22 | | |
$ | 0.20 | | |
$ | 0.68 | | |
$ | 0.58 | |
| (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 | | |
| |
| | |
Q3 - 14
(Constant
currency) | | |
fluctuations in
foreign currency
exchange rates | | |
Q3 - 14
(Actual) | |
| | |
(Unaudited, in thousands, except per share data) | |
| | |
| | |
| | |
| |
| Net Revenues | |
$ | 139,811 | | |
$ | 572 | | |
$ | 140,383 | |
| North America Net Revenue | |
$ | 87,666 | | |
$ | (159 | ) | |
$ | 87,507 | |
| Europe Net Revenue | |
$ | 35,226 | | |
$ | 854 | | |
$ | 36,080 | |
| Asia Pacific Net Revenue | |
$ | 16,919 | | |
$ | (123 | ) | |
$ | 16,796 | |
| Non-GAAP Operating Income | |
$ | 16,030 | | |
$ | 194 | | |
$ | 16,224 | |
| Non-GAAP Net Income from Continuing Operations | |
$ | 9,500 | | |
$ | 659 | | |
$ | 10,159 | |
| Non-GAAP Diluted EPS from Continuing Operations | |
$ | 0.21 | | |
$ | 0.01 | | |
$ | 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 (Q3 - 13) average exchange rates. |
Sequential Quarter Constant Currency Adjustments (4)
| | |
| | |
Impact of | | |
| |
| | |
Q3 - 14
(Constant
currency) | | |
fluctuations in
foreign currency
exchange rates | | |
Q3 - 14
(Actual) | |
| | |
(Unaudited, in thousands) | |
| | |
| | | |
| | | |
| | |
| Net Revenues | |
$ | 141,062 | | |
$ | (679 | ) | |
$ | 140,383 | |
| (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 (Q2 - 14) average exchange rates. |
Organic Growth (5)
| | |
| | |
Impact of | | |
| | |
| | |
| | |
| |
| | |
September 30,
2013 | | |
fluctuations in
foreign currency
exchange rates | | |
Acquisitions | | |
Organic net
revenue
growth | | |
September 30,
2014 | | |
Organic net
revenue
growth rate | |
| | |
(Unaudited, in thousands, except percentages) | | |
| |
| | |
| | |
| | |
| | |
| | |
| | |
| |
| Net Revenues, Three Months Ended | |
$ | 130,570 | | |
$ | 115 | | |
$ | 11,981 | | |
$ | (2,283 | ) | |
$ | 140,383 | | |
| -1.7 | % |
| Net Revenues, Nine Months Ended | |
$ | 392,240 | | |
$ | 106 | | |
$ | 45,579 | | |
$ | (10,016 | ) | |
| 427,909 | | |
| -2.6 | % |
| (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. |