EX-99.1 2 e40714ex99_1.htm PRO FORM RESULTS

Exhibit 99.1

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)

PRO FORMA CONTINUING OPERATIONS (Excludes PGiSend Business)

Q1-2009     Q2-2009     Q3-2009     Q4-2009     Q1-2010     Q2-2010     Q3-2010
Net revenues $ 117,860 $ 116,709 $ 111,404 $ 107,989 $ 112,495 $ 110,937 $ 109,497
Operating expenses:
Cost of revenues (exclusive of depreciation
   and amortization shown separately below) 45,367 45,500 45,092 42,958 44,075 45,356 44,834
Selling and marketing 30,812 29,776 28,152 29,646 32,968 28,791 28,502
General and administrative (exclusive of expenses
   shown separately below) 12,813 14,243 14,359 14,871 14,450 14,550 14,955
Research and development 2,606 2,813 3,092 2,796 3,577 3,358 3,660
Excise and sales tax expense
-
 - - - - 439 -
Depreciation 5,019 5,442 5,700 5,998 6,332 6,209 6,375
Amortization 2,930 2,744 2,486 2,357 2,238 1,874 1,658
Restructuring costs 799 882 5,466 2,280 232 1,851 4,824
Asset impairments - - 642 42 38 91 47
Net legal settlements and related expenses (6 ) 112 9 182 339 41 35
Acquisition-related costs 340 231 41 - 174 142 -
     Total operating expenses 100,680 101,743 105,039 101,130 104,423 102,702 104,890
Operating income 17,180 14,966 6,365 6,859 8,072 8,235 4,607
Other (expense) income:
Interest expense (3,407 ) (3,200 ) (2,766 ) (1,935 ) (2,417 ) (3,905 ) (2,814 )
Unrealized gain on change in fair value of interest rate swaps 941 1,145 786 494 484 490 254
Interest income 106 74 86 153 35 36 38
Other, net 15 425 (243 ) 114 10 74 (790 )
 
 
     Total other expense, net (2,345 ) (1,556 ) (2,137 ) (1,174 ) (1,888 ) (3,305 ) (3,312 )
 
 
 
 
 
 
 
Income from continuing operations before income taxes 14,835 13,410 4,228 5,685 6,184 4,930 1,295
Income tax expense 4,821 4,358 1,374 1,848 1,732 1,380 363
Net income from continuing operations 10,014 9,052 2,854 3,837 4,452 3,550 932
Income (loss) on discontinued operations, net of taxes 210 (1,268 ) (15,470 ) 4,379 3,120 850 2,878
 
 
Net income (loss) $ 10,224 $ 7,784 $ (12,616 ) $ 8,216 $ 7,572 $ 4,400 $ 3,810
 
BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING 58,815 58,840 59,049 58,576 58,220 58,367 58,548
Basic net income (loss) per share
Continuing operations $ 0.17 $ 0.15 $ 0.05 $ 0.07 $ 0.08 $ 0.06 $ 0.02
Discontinued operations 0.00 (0.02 ) (0.26 ) 0.07 0.05 0.01 0.05
 
 
   Net income (loss) per share $ 0.17 $ 0.13 $ (0.21 ) $ 0.14 $ 0.13 $ 0.08 $ 0.07
 
DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING 59,347 59,439 59,564 58,880 58,535 58,774 58,898
Diluted net income (loss) per share
Continuing operations $ 0.17 $ 0.15 $ 0.05 $ 0.07 $ 0.08 $ 0.06 $ 0.02
Discontinued operations 0.00 (0.02 ) (0.26 ) 0.07 0.05 0.01 0.05
 
 
   Net income (loss) per share $ 0.17 $ 0.13 $ (0.21 ) $ 0.14 $ 0.13 $ 0.07 $ 0.06
 


PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited, in thousands, except per share data)

PRO FORMA CONTINUING OPERATIONS (Excludes PGiSend Business)

Q1-2009     Q2-2009     Q3-2009     Q4-2009     Q1-2010     Q2-2010     Q3-2010
Non-GAAP Operating Income (1)
   Operating income, as reported $ 17,180 $ 14,966 $ 6,365 $ 6,859 $ 8,072 $ 8,235 $ 4,607
   Restructuring costs 799 882 5,466 2,280 232 1,851 4,824
   Excise and sales tax expense - - - - - 439 -
   Asset impairments - - 642 42 38 91 47
   Net legal settlements and related expenses (6 ) 112 9 182 339 41 35
   Equity-based compensation 2,855 2,801 2,468 2,372 2,603 2,217 2,158
   Acquisition-related costs 340 231 41 - 174 142 -
   Amortization 2,930 2,744 2,486 2,357 2,238 1,874 1,658
      Non-GAAP operating income $ 24,098 $ 21,736 $ 17,477 $ 14,092 $ 13,696 $ 14,890 $ 13,329
 
Non-GAAP Net Income from Continuing Operations (1)
   Net income (loss) from continuing operations, as reported $ 10,014 $ 9,052 $ 2,854 $ 3,837 $ 4,452 $ 3,550 $ 932
   Elimination of tax adjustments 192 174 55 74 -  -  -
   Unrealized gain on change in fair value of interest rate swaps (647 ) (788 ) (541 ) (340 ) (348 ) (353 ) (183 )
   Restructuring costs 550 607 3,761 1,569 167 1,333 3,473
   Excise and sales tax expense - - - - - 316 -
   Excise and sales tax interest - - - - - 468 -
   Asset impairments - - 442 29 27 66 34
   Net legal settlements and related expenses (4 ) 77 6 125 244 30 25
   Equity-based compensation 1,964 1,927 1,698 1,632 1,874 1,596 1,554
   Acquisition-related costs 234 159 28 - 125 102 -
   Amortization 2,016 1,888 1,710 1,622 1,611 1,349 1,194
   Non-recurring foreign exchange losses - - - - - - 214
   Debt refinance costs - - - - - 282 -
      Non-GAAP net income from continuing operations $ 14,319 $ 13,096 $ 10,013 $ 8,548 $ 8,152 $ 8,739 $ 7,243
Non-GAAP Diluted EPS from Continuing Operations (1)
   Diluted net income (loss) per share from continuing operations, as reported $ 0.17 $ 0.15 $ 0.05 $ 0.07 $ 0.08 $ 0.06 $ 0.02
   Elimination of tax adjustments - - - - - - -
   Unrealized gain on change in fair value of interest rate swaps (0.01 ) (0.01 ) (0.01 ) (0.01 ) (0.01 ) (0.01 ) -
   Restructuring costs 0.01 0.01 0.06 0.03 - 0.02 0.06
   Excise and sales tax expense - - - - - 0.01 -
   Excise and sales tax interest - - - - - 0.01 -
   Asset impairments - - 0.01 - - - -
   Net legal settlements and related expenses - - - - - - -
   Equity-based compensation 0.03 0.03 0.03 0.03 0.03 0.03 0.03
   Acquisition-related costs - - - - - - -
   Amortization 0.03 0.03 0.03 0.03 0.03 0.02 0.02
   Non-recurring foreign exchange losses - - - - - - -
   Debt refinance costs - - - - - - -
      Non-GAAP diluted EPS from continuing operations $ 0.24 $ 0.22 $ 0.17 $ 0.15 $ 0.14 $ 0.15 $ 0.12

(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 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 tax adjustments, unrealized gain on change in fair value of interest rate swaps, restructuring costs, excise and sales tax expense and interest, asset impairments, net legal settlements and related expenses, acquisition-related costs, non-recurring foreign exchange losses and debt refinance 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.