|
PGi Announces Record UC&C SaaS Results in the Second Quarter 2015: UC&C SaaS Non-GAAP Revenue Up 72% Year-over-year to $83M* Annual Run-Rate; Over 14% of Q2 Net Revenue; Record ACV Bookings of Over $7M
ATLANTA, July 30, 2015 /PRNewswire/ -- Premiere Global Services, Inc. (NYSE: PGI), the world's largest dedicated provider of collaboration software and services, today announced results for the second quarter ended June 30, 2015.
In the second quarter of 2015, net revenue totaled $144.3 million, including an estimated negative impact of $6 million from year-over-year changes in foreign currency exchange rates. Non-GAAP revenue totaled $144.6 million* in the second quarter of 2015. Unified communications and collaboration (UC&C) SaaS non-GAAP revenue grew 72%, totaling $20.7 million* in the second quarter of 2015, compared to $12.0 million* in the second quarter of 2014. Diluted EPS from continuing operations was $0.11 in the second quarter of 2015, compared to $0.13 in the second quarter of 2014. Non-GAAP diluted EPS from continuing operations was $0.26* in the second quarter of 2015, compared to non-GAAP diluted EPS from continuing operations of $0.23* in the second quarter of 2014.
|
Second Quarter 2015 Results*
($ in millions, except per share data)
|
2Q14
|
2Q15
|
Constant
Currency **
|
Adjusted
Growth **
|
|
Non-GAAP revenue
|
$144.3
|
$144.6
|
$150.6
|
4.4%
|
|
UC&C SaaS non-GAAP revenue
|
$12.0
|
$20.7
|
$21.4
|
78.3%
|
|
Non-GAAP gross margin
|
59.1%
|
60.7%
|
60.6%
|
150 BPs
|
|
Adjusted EBITDA
|
$26.7
|
$27.9
|
$28.5
|
6.7%
|
|
Non-GAAP diluted EPS from continuing operations
|
$0.23
|
$0.26
|
$0.27
|
17.4%
|
"We are thrilled to report another quarter of record performance, as we further accelerated the transition of our business to a SaaS model, while continuing to drive meaningful increases in our profitability," said Boland T. Jones, PGi founder, chairman and CEO. "It is clear to us that our strategy is working, with record incremental annual contract value (ACV) bookings of over $7 million sold in the second quarter and our highest gross margin percent in over five years. With sales pipelines at a record high and continuing overall momentum in our global business, we remain optimistic in our outlook for the remainder of the year."
Six Month Results
In the first six months of 2015, net revenue totaled $286.6 million, including an estimated negative impact of $11 million from year-over-year changes in foreign currency exchange rates. Non-GAAP revenue totaled $287.4 million* in the first six months of 2015. UC&C SaaS non-GAAP revenue grew 75%, totaling $39.7 million* in the first six months of 2015, compared to $22.7 million* in the first six months of 2014. Diluted EPS from continuing operations was $0.14 in the first six months of 2015, compared to $0.24 in the first six months of 2014. Non-GAAP diluted EPS from continuing operations was $0.49* in the first six months of 2015, compared to non-GAAP diluted EPS from continuing operations of $0.46* in the first six months of 2014.
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 prevailing foreign currency exchange rates, and assuming no additional acquisitions, PGi has raised its financial outlook for 2015 from the range it previously provided on April 23, 2015. PGi now anticipates that 2015 results will be within the following financial outlook ranges: non-GAAP revenue is projected to be in the range of $568-$575 million* and non-GAAP diluted EPS from continuing operations are projected to be in the range of $0.94-$0.96*. These ranges include an estimated negative year-over-year impact from changes in foreign currency exchange rates of approximately $21 million and $0.02* to non-GAAP revenue and non-GAAP diluted EPS from continuing operations, respectively. PGi continues to anticipate that its UC&C SaaS revenue will increase over 50% in 2015 compared to 2014.
PGi will host a conference call today at 5:00 p.m., Eastern Time to discuss these results. To participate in the call, please dial-in to the appropriate number 5-10 minutes prior to the scheduled start time: (800) 756-4697 (U.S. and Canada) or (913) 981-5549 (International), participant passcode 7301652. The conference call will simultaneously be webcast in iMeetLive®. 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
The company's non-GAAP revenue, UC&C SaaS non-GAAP revenue and non-GAAP gross margin include the deferred revenue from software licenses and related support contracts from recent acquisitions and excludes the impact of purchase accounting adjustments related to deferred revenue. Adjusted EBITDA and non-GAAP diluted earnings per share (EPS) from continuing operations and projections of these items also exclude equity-based compensation, amortization expenses, non-recurring tax adjustments and related interest, restructuring costs, excise and sales tax expense and related interest, asset impairments, net legal settlements and related expenses, acquisition-related costs, foreign exchange transaction gains and losses and the impact of purchase accounting adjustments related to deferred revenue. 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. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the attached financial tables. 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.
** Constant Currency
These constant currency adjustments convert current period results using prior period (Q2-14) average exchange rates calculated in the same manner as in footnote 5 to the Reconciliation of Non-GAAP Financial Measures table.
About Premiere Global Services, Inc. ¦ PGi
PGi is the world's largest dedicated provider of collaboration software and services. We created iMeet®, an expanding portfolio of purpose-built applications designed to meet the daily collaboration and communications needs of business professionals, with solutions for web, video and audio conferencing, smart calendar management, webcasting, project management and sales acceleration. PGi's award-winning UC&C solutions help nearly 50,000 businesses grow faster and operate more efficiently. To learn more, visit us 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 UC&C SaaS solutions, including our iMeet® and GlobalMeet® solutions; our ability to attract, retain and expand the products and services we provide to existing customers; our ability to establish and maintain strategic reseller and distribution relationships; risks associated with global economic or market 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, 2014. All forward-looking statements attributable to us or a person acting on our behalf are expressly qualified in their entirety by these cautionary statements. We undertake no obligation to publicly update or revise these forward looking statements for any reason.
|
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,
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
$ 144,304
|
|
$ 144,287
|
|
$ 286,626
|
|
$ 287,526
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Cost of revenue (exclusive of depreciation and amortization shown
|
|
|
|
|
|
|
|
|
|
separately below)
|
56,885
|
|
59,001
|
|
114,041
|
|
118,543
|
|
|
Selling and marketing
|
37,070
|
|
37,593
|
|
74,125
|
|
75,429
|
|
|
General and administrative (exclusive of expenses
|
21,021
|
|
19,070
|
|
41,173
|
|
37,005
|
|
|
shown separately below)
|
|
|
|
|
|
|
|
|
|
Research and development
|
4,842
|
|
4,616
|
|
10,592
|
|
9,121
|
|
|
Depreciation
|
8,892
|
|
8,885
|
|
17,464
|
|
17,551
|
|
|
Amortization
|
4,387
|
|
2,484
|
|
8,437
|
|
4,967
|
|
|
Restructuring costs
|
(37)
|
|
-
|
|
4,146
|
|
-
|
|
|
Asset impairments
|
127
|
|
-
|
|
150
|
|
-
|
|
|
Net legal settlements and related expenses
|
(11)
|
|
-
|
|
(11)
|
|
-
|
|
|
Acquisition-related costs
|
3,027
|
|
1,786
|
|
3,600
|
|
3,691
|
|
|
Total operating expenses
|
136,203
|
|
133,435
|
|
273,717
|
|
266,307
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
8,101
|
|
10,852
|
|
12,909
|
|
21,219
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense) income:
|
|
|
|
|
|
|
|
|
|
Interest expense
|
(2,882)
|
|
(2,385)
|
|
(5,503)
|
|
(4,485)
|
|
|
Interest income
|
6
|
|
11
|
|
14
|
|
20
|
|
|
Other, net
|
649
|
|
(36)
|
|
402
|
|
255
|
|
|
Total other expense, net
|
(2,227)
|
|
(2,410)
|
|
(5,087)
|
|
(4,210)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes
|
5,874
|
|
8,442
|
|
7,822
|
|
17,009
|
|
|
Income tax expense
|
994
|
|
2,309
|
|
1,555
|
|
5,606
|
|
|
Net income from continuing operations
|
4,880
|
|
6,133
|
|
6,267
|
|
11,403
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of taxes
|
(108)
|
|
(118)
|
|
(334)
|
|
(183)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$ 4,772
|
|
$ 6,015
|
|
$ 5,933
|
|
$ 11,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING
|
44,029
|
|
45,859
|
|
44,479
|
|
46,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per share (1)
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
$ 0.11
|
|
$ 0.13
|
|
$ 0.14
|
|
$ 0.25
|
|
|
Discontinued operations
|
-
|
|
-
|
|
(0.01)
|
|
-
|
|
|
Net income per share
|
$ 0.11
|
|
$ 0.13
|
|
$ 0.13
|
|
$ 0.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING
|
44,585
|
|
46,550
|
|
45,037
|
|
46,784
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per share (1)
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
$ 0.11
|
|
$ 0.13
|
|
$ 0.14
|
|
$ 0.24
|
|
|
Discontinued operations
|
-
|
|
-
|
|
(0.01)
|
|
-
|
|
|
Net income per share
|
$ 0.11
|
|
$ 0.13
|
|
$ 0.13
|
|
$ 0.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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,
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
CURRENT ASSETS
|
|
|
|
|
Cash and equivalents
|
$ 20,707
|
|
$ 40,220
|
|
Accounts receivable (less allowances of $746 and $557, respectively)
|
89,977
|
|
77,334
|
|
Prepaid expenses and other current assets
|
16,528
|
|
13,536
|
|
Income taxes receivable
|
662
|
|
1,897
|
|
Deferred income taxes, net
|
8,658
|
|
10,447
|
|
|
Total current assets
|
136,532
|
|
143,434
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT, NET
|
101,595
|
|
100,954
|
|
|
|
|
|
|
|
OTHER ASSETS
|
|
|
|
|
Goodwill
|
417,699
|
|
386,416
|
|
Intangibles, net of amortization
|
103,073
|
|
102,350
|
|
Deferred income taxes, net
|
2,225
|
|
2,342
|
|
Other assets
|
14,982
|
|
20,734
|
|
|
TOTAL ASSETS
|
$ 776,106
|
|
$ 756,230
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
CURRENT LIABILITIES
|
|
|
|
|
Accounts payable
|
$ 52,702
|
|
$ 57,211
|
|
Income taxes payable
|
1,957
|
|
2,217
|
|
Accrued taxes, other than income taxes
|
10,386
|
|
17,562
|
|
Accrued expenses
|
60,062
|
|
37,807
|
|
Current maturities of long-term debt and capital lease obligations
|
2,079
|
|
1,971
|
|
Accrued restructuring costs
|
1,384
|
|
958
|
|
Deferred income taxes, net
|
3
|
|
17
|
|
|
Total current liabilities
|
128,573
|
|
117,743
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES
|
|
|
|
|
Long-term debt and capital lease obligations
|
339,775
|
|
332,825
|
|
Accrued expenses
|
33,261
|
|
23,219
|
|
Deferred income taxes, net
|
28,247
|
|
27,453
|
|
|
Total long-term liabilities
|
401,283
|
|
383,497
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY
|
|
|
|
|
Common stock, $0.01 par value; 150,000,000 shares authorized,
|
|
|
|
|
46,808,447 and 47,378,794 shares issued and outstanding, respectively
|
485
|
|
475
|
|
Additional paid-in capital
|
432,838
|
|
442,585
|
|
Accumulated other comprehensive loss
|
(11,481)
|
|
(6,545)
|
|
Accumulated deficit
|
(175,592)
|
|
(181,525)
|
|
|
Total shareholders' equity
|
246,250
|
|
254,990
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$ 776,106
|
|
$ 756,230
|
|
|
|
|
|
|
|
PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
June 30,
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net income
|
|
$ 5,933
|
|
$ 11,220
|
|
|
Loss from discontinued operations, net of taxes
|
|
334
|
|
183
|
|
|
|
Net income from continuing operations
|
|
6,267
|
|
11,403
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
Depreciation
|
|
17,464
|
|
17,551
|
|
|
Amortization
|
|
8,437
|
|
4,967
|
|
|
Amortization of debt issuance costs
|
|
364
|
|
322
|
|
|
Net legal settlements and related expenses
|
|
(11)
|
|
-
|
|
|
Payments for legal settlements and related expenses
|
|
(110)
|
|
-
|
|
|
Deferred income taxes
|
|
(601)
|
|
908
|
|
|
Restructuring costs
|
|
4,146
|
|
-
|
|
|
Payments for restructuring costs
|
|
(3,583)
|
|
(1,659)
|
|
|
Asset impairments
|
|
150
|
|
-
|
|
|
Equity-based compensation
|
|
6,065
|
|
4,884
|
|
|
Excess tax benefits from share-based payment arrangements
|
|
(92)
|
|
(395)
|
|
|
Provision for doubtful accounts
|
|
447
|
|
362
|
|
|
Acquisition-related costs
|
|
3,600
|
|
3,691
|
|
|
Cash paid for acquisition-related costs
|
|
(3,067)
|
|
(3,779)
|
|
|
Changes in working capital, net of business acquisitions
|
|
(10,218)
|
|
812
|
|
|
|
|
Net cash provided by operating activities from continuing operations
|
|
29,258
|
|
39,067
|
|
|
|
|
Net cash used in operating activities from discontinued operations
|
|
(391)
|
|
(165)
|
|
|
|
|
Net cash provided by operating activities
|
|
28,867
|
|
38,902
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
Capital expenditures
|
|
(19,782)
|
|
(15,520)
|
|
|
Business acquisitions, net of cash acquired
|
|
(16,284)
|
|
66
|
|
|
Other investing activities, net
|
|
(301)
|
|
2,052
|
|
|
|
|
Net cash used in investing activities from continuing operations
|
|
(36,367)
|
|
(13,402)
|
|
|
|
|
Net cash used in investing activities from discontinued operations
|
|
-
|
|
-
|
|
|
|
|
Net cash used in investing activities
|
|
(36,367)
|
|
(13,402)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
Principal payments under borrowing arrangements
|
|
(55,291)
|
|
(83,447)
|
|
|
Proceeds from borrowing arrangements
|
|
61,500
|
|
62,000
|
|
|
Payment of earn-out liability
|
|
(1,841)
|
|
-
|
|
|
Excess tax benefits of share-based payment arrangements
|
|
92
|
|
395
|
|
|
Purchases and retirement of treasury stock, at cost
|
|
(15,293)
|
|
(18,988)
|
|
|
Exercise of stock options
|
|
-
|
|
963
|
|
|
|
|
Net cash used in financing activities from continuing operations
|
|
(10,833)
|
|
(39,077)
|
|
|
|
|
Net cash used in financing activities from discontinued operations
|
|
-
|
|
-
|
|
|
|
|
Net cash used in financing activities
|
|
(10,833)
|
|
(39,077)
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and equivalents
|
|
(1,180)
|
|
548
|
|
|
|
|
|
|
|
|
|
|
NET DECREASE IN CASH AND EQUIVALENTS
|
|
(19,513)
|
|
(13,029)
|
|
CASH AND EQUIVALENTS, beginning of period
|
|
40,220
|
|
44,955
|
|
CASH AND EQUIVALENTS, end of period
|
|
$ 20,707
|
|
$ 31,926
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Non-GAAP Revenue (1)
|
|
|
|
|
|
|
|
|
|
Net revenue, as reported
|
|
$ 144,304
|
|
$ 144,287
|
|
$ 286,626
|
|
$ 287,526
|
|
Impact of purchase accounting adjustments related to deferred revenue (2)
|
|
331
|
|
-
|
|
748
|
|
-
|
|
Non-GAAP revenue
|
|
$ 144,635
|
|
$ 144,287
|
|
$ 287,374
|
|
$ 287,526
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Gross Margin (1)
|
|
|
|
|
|
|
|
|
|
Gross margin, as calculated
|
|
$ 87,419
|
|
$ 85,286
|
|
$ 172,585
|
|
$ 168,983
|
|
Impact of purchase accounting adjustments related to deferred revenue (2)
|
|
331
|
|
-
|
|
748
|
|
-
|
|
Non-GAAP gross margin
|
|
$ 87,750
|
|
$ 85,286
|
|
$ 173,333
|
|
$ 168,983
|
|
As a percentage of Non-GAAP revenue
|
|
60.7%
|
|
59.1%
|
|
60.3%
|
|
58.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income & Adjusted EBITDA (1)
|
|
|
|
|
|
|
|
|
|
Operating income, as reported
|
|
$ 8,101
|
|
$ 10,852
|
|
$ 12,909
|
|
$ 21,219
|
|
Impact of purchase accounting adjustments related to deferred revenue (2)
|
|
331
|
|
-
|
|
748
|
|
-
|
|
Equity-based compensation
|
|
3,093
|
|
2,657
|
|
6,065
|
|
4,884
|
|
Amortization
|
|
4,387
|
|
2,484
|
|
8,437
|
|
4,967
|
|
Restructuring costs
|
|
(37)
|
|
-
|
|
4,146
|
|
-
|
|
Asset impairments
|
|
127
|
|
-
|
|
150
|
|
-
|
|
Net legal settlements and related expenses
|
|
(11)
|
|
-
|
|
(11)
|
|
-
|
|
Acquisition-related costs
|
|
3,027
|
|
1,786
|
|
3,600
|
|
3,691
|
|
Non-GAAP operating income
|
|
$ 19,018
|
|
$ 17,779
|
|
$ 36,044
|
|
$ 34,761
|
|
Depreciation
|
|
8,892
|
|
8,885
|
|
17,464
|
|
17,551
|
|
Adjusted EBITDA
|
|
$ 27,910
|
|
$ 26,664
|
|
$ 53,508
|
|
$ 52,312
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Income from Continuing Operations (1)
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations, as reported
|
|
$ 4,880
|
|
$ 6,133
|
|
$ 6,267
|
|
$ 11,403
|
|
Impact of purchase accounting adjustments related to deferred revenue (2)
|
|
239
|
|
-
|
|
539
|
|
-
|
|
Elimination of non-recurring tax adjustments and related interest
|
|
(594)
|
|
(167)
|
|
(548)
|
|
474
|
|
Equity-based compensation
|
|
2,227
|
|
1,833
|
|
4,367
|
|
3,370
|
|
Amortization
|
|
3,159
|
|
1,714
|
|
6,075
|
|
3,427
|
|
Restructuring costs
|
|
(27)
|
|
-
|
|
2,985
|
|
-
|
|
Asset impairments
|
|
91
|
|
-
|
|
108
|
|
-
|
|
Net legal settlements and related expenses
|
|
(8)
|
|
-
|
|
(8)
|
|
-
|
|
Acquisition-related costs
|
|
2,179
|
|
1,232
|
|
2,592
|
|
2,547
|
|
Foreign exchange transaction (gain) loss (3)
|
|
(455)
|
|
24
|
|
(271)
|
|
145
|
|
Non-GAAP net income from continuing operations
|
|
$ 11,691
|
|
$ 10,769
|
|
$ 22,106
|
|
$ 21,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Diluted EPS from Continuing Operations (1) (4)
|
|
|
|
|
|
|
|
|
|
Diluted net income per share from continuing operations, as reported
|
|
$ 0.11
|
|
$ 0.13
|
|
$ 0.14
|
|
$ 0.24
|
|
Impact of purchase accounting adjustments related to deferred revenue (2)
|
|
0.01
|
|
-
|
|
0.01
|
|
-
|
|
Elimination of non-recurring tax adjustments and related interest
|
|
(0.01)
|
|
-
|
|
(0.01)
|
|
0.01
|
|
Equity-based compensation
|
|
0.05
|
|
0.04
|
|
0.10
|
|
0.07
|
|
Amortization
|
|
0.07
|
|
0.04
|
|
0.13
|
|
0.07
|
|
Restructuring costs
|
|
-
|
|
-
|
|
0.07
|
|
-
|
|
Asset impairments
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Net legal settlements and related expenses
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Acquisition-related costs
|
|
0.05
|
|
0.03
|
|
0.06
|
|
0.05
|
|
Foreign exchange transaction gain (3)
|
|
(0.01)
|
|
-
|
|
(0.01)
|
|
-
|
|
Non-GAAP diluted EPS from continuing operations
|
|
$ 0.26
|
|
$ 0.23
|
|
$ 0.49
|
|
$ 0.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Management believes that presenting non-GAAP revenue, non-GAAP gross margin, non-GAAP operating income, adjusted EBITDA, 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 operating income, adjusted EBITDA, 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 the impact of purchase accounting adjustments related to deferred revenue, non-recurring tax adjustments and related interest, excise and sales tax expense, excise and sales tax interest, restructuring costs, asset impairments, net legal settlements and related expenses, acquisition-related costs and foreign exchange transaction gains and losses. 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)
|
Business combination accounting principles require us to write-down the deferred revenue associated with software licenses and related support contracts assumed in our acquisitions. The revenue for these support contracts is deferred and typically recognized over a one-year period, so our GAAP revenue for the one-year period after an acquisition does not reflect the full amount of revenue that would have been reported if the acquired deferred revenue was not written down to fair value. The non-GAAP adjustment eliminates the effect of the deferred revenue write-down. We believe this adjustment to the revenue from these contracts is useful to investors as an additional means to reflect revenue trends of our business.
|
|
|
|
|
|
|
(3)
|
Represents the impact of foreign exchange transaction gains and losses included in the Statements of Operations in "Other, net."
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4)
|
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
|
|
(Unaudited, in thousands, except per share data)
|
|
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior Year Quarter Constant Currency Adjustments (5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter-to-date
|
|
|
Year-to-date
|
|
|
|
|
|
|
|
Impact of
|
|
|
|
|
|
|
Impact of
|
|
|
|
|
|
|
|
Q2 - 15 (Constant currency)
|
|
fluctuations in
foreign currency
exchange rates
|
|
Q2 - 15 (Actual)
|
|
|
Q2 - 15 (Constant currency)
|
|
fluctuations in
foreign currency
exchange rates
|
|
Q2 - 15 (Actual)
|
|
|
|
|
|
(Unaudited, in thousands, except per share data)
|
|
|
(Unaudited, in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue
|
$ 150,291
|
|
$ (5,987)
|
|
$ 144,304
|
|
|
$ 298,072
|
|
$ (11,446)
|
|
$ 286,626
|
|
|
|
|
North America Net Revenue
|
$ 92,065
|
|
$ (414)
|
|
$ 91,651
|
|
|
$ 183,229
|
|
$ (833)
|
|
$ 182,396
|
|
|
|
|
Europe Net Revenue
|
$ 41,406
|
|
$ (4,107)
|
|
$ 37,299
|
|
|
$ 82,530
|
|
$ (7,971)
|
|
$ 74,559
|
|
|
|
|
Asia Pacific Net Revenue
|
$ 16,820
|
|
$ (1,466)
|
|
$ 15,354
|
|
|
$ 32,313
|
|
$ (2,642)
|
|
$ 29,671
|
|
|
|
|
Non-GAAP Operating Income
|
$ 19,328
|
|
$ (310)
|
|
$ 19,018
|
|
|
$ 36,921
|
|
$ (877)
|
|
$ 36,044
|
|
|
|
|
Adjusted EBITDA
|
$ 28,514
|
|
$ (604)
|
|
$ 27,910
|
|
|
$ 54,941
|
|
$ (1,433)
|
|
$ 53,508
|
|
|
|
|
Non-GAAP Net Income from Continuing Operations
|
$ 11,911
|
|
$ (220)
|
|
$ 11,691
|
|
|
$ 22,734
|
|
$ (628)
|
|
$ 22,106
|
|
|
|
|
Non-GAAP Diluted EPS from Continuing Operations
|
$ 0.27
|
|
$ (0.01)
|
|
$ 0.26
|
|
|
$ 0.50
|
|
$ (0.01)
|
|
$ 0.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
Management also presents the non-GAAP financial measures described under note 1 above, as well as net revenue and segment net revenue, on a constant currency basis
|
|
compared to the same period in the previous year (Q2-14 QTD or YTD) 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 QTD and YTD results using prior period (Q2-14 QTD and YTD) average exchange rates.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sequential Quarter Constant Currency Adjustments (6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 - 15 (Constant currency)
|
|
fluctuations in
foreign currency
exchange rates
|
|
Q2 - 15 (Actual)
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited, in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue
|
$ 144,345
|
|
$ (41)
|
|
$ 144,304
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6)
|
Management also presents net revenue on a constant currency basis compared to the prior quarter (Q1-15) 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 (Q1-15)
|
|
|
|
average exchange rates.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic Growth (7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2014
|
|
fluctuations in
foreign currency
exchange rates
|
|
Acquisitions
|
|
|
Organic net revenue growth
|
|
June 30,
2015
|
|
Organic net revenue growth rate
|
|
|
|
|
|
(Unaudited, in thousands, except percentages)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Revenue, Three Months Ended
|
$ 144,287
|
|
$ (5,717)
|
|
$ 10,552
|
|
|
$ (4,818)
|
|
$ 144,304
|
|
-3.3%
|
|
|
|
Net Revenue, Six Months Ended
|
$ 287,526
|
|
$ (10,953)
|
|
$ 19,486
|
|
|
$ (9,433)
|
|
$ 286,626
|
|
-3.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7)
|
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.
|
|
|
|
|
|
|
PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
|
|
(Unaudited, in thousands, except per share data)
|
|
(continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UC&C SaaS and Resold Services Revenue (8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1-13
|
Q2-13
|
Q3-13
|
Q4-13
|
FY 2013
|
|
Q1-14
|
Q2-14
|
Q3-14
|
Q4-14
|
FY 2014
|
|
Q1-15
|
Q2-15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UC&C SaaS revenue, as reported
|
$ 7,149
|
$ 7,827
|
$ 8,901
|
$ 9,706
|
$33,583
|
|
$10,733
|
$11,996
|
$13,029
|
$16,977
|
$52,735
|
|
$18,746
|
$20,469
|
|
Adjustment (8)
|
-
|
-
|
-
|
-
|
-
|
|
-
|
-
|
-
|
435
|
435
|
|
276
|
201
|
|
UC&C SaaS non-GAAP revenue
|
7,149
|
7,827
|
8,901
|
9,706
|
33,583
|
|
10,733
|
11,996
|
13,029
|
17,412
|
53,170
|
|
19,022
|
20,670
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Resold services revenue
|
$16,775
|
$16,650
|
$16,053
|
$15,618
|
$65,096
|
|
$16,118
|
$15,356
|
$15,234
|
$14,313
|
$61,021
|
|
$13,036
|
$12,495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8)
|
Adjusted for the impact of purchase accounting related to deferred revenue. See footnote 2.
|
Media and Investor Contact:
Sean O'Brien
(404) 262-8462
[email protected]
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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/pgi-announces-record-ucc-saas-results-in-the-second-quarter-2015-ucc-saas-non-gaap-revenue-up-72-year-over-year-to-83m-annual-run-rate-over-14-of-q2-net-revenue-record-acv-bookings-of-over-7m-300121404.html
SOURCE Premiere Global Services, Inc.
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