Premiere Global Services, Inc. (NYSE: PGI), a global leader in virtual meetings for 20 years, today announced results for the fourth quarter and fiscal year ended December 31, 2011.
In the fourth quarter of 2011, net revenues increased 9.1% to $118.7 million, compared to $108.8 million in the fourth quarter of 2010. Diluted EPS from continuing operations was $0.07 and non-GAAP diluted EPS from continuing operations was $0.18* in the fourth quarter of 2011, compared to diluted EPS from continuing operations of ($0.01) and non-GAAP diluted EPS from continuing operations of $0.10* in the fourth quarter of 2010.
“We are pleased with our performance in 2011, as we returned to growth across all regions and product lines,” said Boland T. Jones, PGi founder, chairman and CEO. “Last year, we made significant progress in transitioning PGi toward a Software as a Service model with the initial launch of our next-generation virtual meeting solutions, iMeet® and GlobalMeet®. The market reception of these award-winning new products has been positive, and enterprise momentum continues to build. This year, we plan to continue to enhance both iMeet and GlobalMeet with increased functionality, mobility upgrades and exciting new features that will open new market opportunities and position these products as the ones to beat in the enterprise market.”
2011 Financial Results
In 2011, net revenues increased 7.3% to $473.8 million, compared to $441.8 million in 2010. Diluted EPS from continuing operations was $0.34 and non-GAAP diluted EPS from continuing operations was $0.62* in 2011, compared to diluted EPS from continuing operations of $0.15 and non-GAAP diluted EPS from continuing operations of $0.51* in 2010. Results for 2010 are presented to reflect the PGiSend business as discontinued operations, as it was sold in October 2010.
• Celebrated 20 years as a global leader in virtual meetings;
• Launched iMeet, our secure, cloud-based video conferencing solution that enables up to 15 people to meet face-to-face online – anytime, anywhere – from their desktop, tablet or mobile device;
• Launched GlobalMeet, which integrates web conferencing and audio conferencing into one complete solution for simple, cost-effective meetings;
• Earned multiple awards and accolades for our product innovation, including:
• iMeet won the 2011 People’s Choice Stevie Award for best new computer service;
• iMeet was named Best New Product by Best in Biz awards;
• PGi was named Frost & Sullivan’s 2011 Product Strategy of the Year Award winner; and
• PGi moved into the Visionaries quadrant of the Gartner Magic Quadrant for Web Conferencing based on our innovation with iMeet and GlobalMeet;
• Exited the year with our new virtual meeting products generating an annual revenue run-rate of nearly $11 million;
• Amended our bank credit facility with increased capacity, an extended term and lower pricing;
• Reported our highest revenue growth in three years, with net revenues increasing more than 7% as compared to 2010;
• Reported our highest earnings growth in three years, with non-GAAP diluted EPS from continuing operations increasing nearly 22% as compared to 2010;
• Established a new open market share repurchase program for up to five million shares of our common stock; and
• Repurchased nearly three million shares of common stock in the open market under our prior and current share repurchase plans.
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 trends and foreign currency exchange rates, PGi anticipates net revenues in 2012 will be in the range of $490-$500 million and non-GAAP diluted EPS from continuing operations will be in the range of $0.70-$0.75*.
PGi will host a conference call today at 5:00 pm., 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) 211-4542 (U.S. and Canada) or (913) 312-0943 (International). 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.
View Financial Data
*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 (pgi.com) has been a global leader in virtual meetings for 20 years. Our cloud-based solutions, iMeet® and GlobalMeet®, deliver multi-point, real-time virtual collaboration using video, voice and file sharing technologies. PGi solutions are available via desktops, tablets or mobile devices, helping businesses worldwide be more productive, mobile and green. PGi has a global presence in 25 countries and an established base of more than 35,000 enterprise customers, including 75% of the Fortune 100™. In the last five years, we have hosted more than 725 million people from 137 countries in over 165 million meetings.
Statements made in this press release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and are made based on management’s current expectations or beliefs as well as assumptions made by, and information currently available to, management. A variety of factors could cause actual results to differ materially from those anticipated in Premiere Global Services, Inc.’s forward-looking statements, including, but not limited to, the following factors: competitive pressures, including pricing pressures; technological changes and the development of alternatives to our services; market acceptance of new services, including our iMeet® and GlobalMeet® services; our ability to attract new customers and to retain and further penetrate our existing customer base; risks associated with challenging global economic conditions; costs or difficulties related to the integration of any new technologies; service interruptions and network downtime; price increases from our telecommunications service providers; technological obsolescence and our ability to upgrade our equipment or increase our network capacity; concerns regarding the security of transactions; our level of indebtedness; future write-downs of goodwill or other intangible assets; assessment of income, state sales and other taxes; restructuring and cost reduction initiatives and the market reaction thereto; risks associated with acquisitions and market expansion; the impact of the sale of our PGiSend business; our ability to protect our intellectual property rights, including possible adverse results of litigation or infringement claims; regulatory or legislative changes, including further government regulations applicable to traditional telecommunications service providers; risks associated with international operations, including political instability and 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, 2010. All forward-looking statements attributable to us or a person acting on our behalf are expressly qualified in their entirety by this cautionary statement.