PREMIERE GLOBAL SERVICES, INC. ATLANTA, Oct. 29, 2015 /PRNewswire/ -- Premiere Global Services, Inc. (NYSE: PGI), the world's largest dedicated provider of collaboration software and services, today announced results for the third quarter ended September 30, 2015.
In the third quarter of 2015, net revenue totaled $141.0 million, including an estimated negative impact of $6 million from year-over-year changes in foreign currency exchange rates. Non-GAAP revenue totaled $141.1 million* in the third quarter of 2015. Unified communications and collaboration (UC&C) SaaS non-GAAP revenue grew 71%, totaling $22.3 million* in the third quarter of 2015, compared to $13.0 million* in the third quarter of 2014. Diluted EPS from continuing operations was $0.08 in the third quarter of 2015, compared to $0.06 in the third quarter of 2014. Non-GAAP diluted EPS from continuing operations was $0.23* in the third quarter of 2015, compared to non-GAAP diluted EPS from continuing operations of $0.21* in the third quarter of 2014.
Third
Quarter
2015
Results* 3Q14 3Q15 Constant Adjusted
Currency ** Growth **
($ in
millions,
except per
share data)
------------
Non-GAAP
revenue $140.4 $141.1 $146.6 4.4%
UC&C SaaS
non-GAAP
revenue $13.0 $22.3 $23.0 76.6%
Non-GAAP
gross
margin 58.7% 60.1% 60.0% 130 BPs
Adjusted
EBITDA $24.9 $26.4 $27.2 9.1%
Non-GAAP
diluted EPS
from
continuing
operations $0.21 $0.23 $0.24 14.0%
"We are pleased to report our continuing strong strategic and financial performance, with 71% growth in our UC&C SaaS non-GAAP revenue and record incremental annual contract value (ACV) bookings of $7.6 million sold during the third quarter," said Boland T. Jones, PGi founder, chairman and CEO. "We believe the increase in momentum in our transition to a SaaS model is a result of growing customer demand for our end-to-end suite of iMeet((R)) collaboration applications that help businesses grow, save money and drive productivity."
Nine Month Results
In the first nine months of 2015, net revenue totaled $427.6 million, including an estimated negative impact of $17 million from year-over-year changes in foreign currency exchange rates. Non-GAAP revenue totaled $428.5 million* in the first nine months of 2015. UC&C SaaS non-GAAP revenue grew 73%, totaling $62.0 million* in the first nine months of 2015, compared to $35.8 million* in the first nine months of 2014. Diluted EPS from continuing operations was $0.22 in the first nine months of 2015, compared to $0.30 in the first nine months of 2014. Non-GAAP diluted EPS from continuing operations was $0.72* in the first nine months of 2015, compared to non-GAAP diluted EPS from continuing operations of $0.67* in the first nine months of 2014.
In light of the proposed acquisition by funds managed or advised by Siris Capital Group, LLC (Siris), PGi will not hold a conference call to discuss third quarter earnings.
* 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/divesture-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 (Q3-14) 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((R)), 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: relevant risks and uncertainties relating to the proposed transaction with Siris, including (i) the risk that the merger agreement may be terminated in circumstances that require PGi to pay Siris a termination fee; (ii) risks related to the diversion of management's attention from PGi's ongoing business operations; (iii) risks regarding the failure of Siris to obtain the necessary financing to complete the merger; (iv) the effect of the merger on PGi's business relationships (including, without limitation, customers, strategic alliance partners and suppliers), operating results and business generally; (v) risks related to satisfying the conditions to the merger, including the failure of PGi's shareholders to approve the merger, timing (including possible delays) and receipt of regulatory approvals from various governmental entities (including any conditions, limitations or restrictions placed on these approvals); and (vi) the nature, cost and outcome of any future litigation and other legal proceedings, including any potential proceedings related to the proposed merger; 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(R) and GlobalMeet(R) 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.
Additional Information and Where to Find It
This communication may be deemed to be solicitation material in respect of the proposed merger among PGi, Pangea Private Holdings II, LLC, a Delaware limited liability company (Parent), and Pangea Merger Sub Inc., a Georgia corporation (Merger Sub). Parent and Merger Sub are affiliates of Siris. In connection with the proposed merger, PGi has filed a definitive proxy statement with the Securities and Exchange Commission (SEC) on Schedule 14A on October 26, 2015 and may file other relevant documents concerning the proposed merger. The definitive proxy statement was mailed to shareholders of PGi on or about October 27, 2015. PGi's SHAREHOLDERS ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS IN CONNECTION WITH THE MERGER THAT PGi WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT PGi AND THE PROPOSED MERGER. PGi's shareholders will be able to obtain, without charge, a copy of the definitive proxy statement and other relevant materials in connection with the proposed merger (when they become available), and any other documents filed by PGi with the SEC from the SEC's website at sec.gov and on PGi's website at pgi.com. PGi's shareholders will also be able to obtain, without charge, a copy of the proxy statement and other relevant documents (when available) by directing a request by mail or telephone to Premiere Global Services, Inc., c/o Sean O'Brien, 3280 Peachtree Road, NE, The Terminus Building, Suite 1000, Atlanta, Georgia 30305, by emailing investors@pgi.com or by calling 1-800-749-9111, extension 8462.
PGi and its directors and officers may be deemed to be participants in the solicitation of proxies from PGi's shareholders with respect to the special meeting of shareholders that will be held to consider the proposed merger. Information about PGi's directors and executive officers and their ownership of PGi's common stock is set forth in the definitive proxy statement. Shareholders may obtain additional information regarding the interests of PGi and its directors and executive officers in the proposed merger, which may be different than those of PGi's shareholders generally, by reading the definitive proxy statement and other relevant documents regarding the proposed merger (when they become available).
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,
------------- -------------
2015 2014 2015 2014
---- ---- ---- ----
Net revenue $140,967 $140,383 $427,593 $427,909
Operating expenses:
Cost of revenue (exclusive of depreciation and
amortization shown
separately below) 56,302 57,965 170,343 176,508
Selling and marketing 37,000 36,813 111,125 112,242
General and administrative (exclusive of expenses 19,336 17,810 60,509 54,815
shown separately below)
Research and development 5,793 5,534 16,385 14,655
Excise and sales tax expense 331 - 331 -
Depreciation 8,886 8,697 26,350 26,248
Amortization 3,962 2,582 12,399 7,549
Restructuring costs 49 68 4,195 68
Asset impairments 1 4,938 151 4,938
Net legal settlements and related expenses (10) 172 (21) 172
Acquisition/divestiture-related costs 2,421 2,147 6,021 5,838
Total operating expenses 134,071 136,726 407,788 403,033
------- ------- ------- -------
Operating income 6,896 3,657 19,805 24,876
----- ----- ------ ------
Other (expense) income:
Interest expense (2,975) (2,133) (8,478) (6,618)
Interest income 2 5 16 25
Other, net (1,018) 741 (616) 996
Total other expense, net (3,991) (1,387) (9,078) (5,597)
------ ------ ------ ------
Income from continuing operations before income taxes 2,905 2,270 10,727 19,279
Income tax (benefit) expense (553) (376) 1,002 5,230
---- ---- ----- -----
Net income from continuing operations 3,458 2,646 9,725 14,049
----- ----- ----- ------
Loss from discontinued operations, net of taxes (119) (100) (453) (283)
Net income $3,339 $2,546 $9,272 $13,766
====== ====== ====== =======
BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING 44,133 45,162 44,365 45,797
====== ====== ====== ======
Basic net income (loss) per share (1)
Continuing operations $0.08 $0.06 $0.22 $0.31
Discontinued operations - - (0.01) (0.01)
Net income per share $0.08 $0.06 $0.21 $0.30
DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING 45,002 45,898 45,028 46,485
====== ====== ====== ======
Diluted net income (loss) per share (1)
Continuing operations $0.08 $0.06 $0.22 $0.30
Discontinued operations - - (0.01) (0.01)
Net income per share $0.07 $0.06 $0.21 $0.30
(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,
2015 2014
---- ----
ASSETS
CURRENT ASSETS
Cash and equivalents $19,317 $40,220
Accounts receivable (less allowances of $740 and $557,
respectively) 89,347 77,334
Prepaid expenses and other current assets 17,616 13,536
Income taxes receivable 707 1,897
Deferred income taxes, net 10,148 10,447
Total current assets 137,135 143,434
------- -------
PROPERTY AND EQUIPMENT, NET 100,647 100,954
OTHER ASSETS
Goodwill 410,000 386,416
Intangibles, net of amortization 96,411 102,350
Deferred income taxes, net 2,511 2,342
Other assets 13,810 20,734
TOTAL ASSETS $760,514 $756,230
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $48,418 $57,211
Income taxes payable 1,346 2,217
Accrued taxes, other than income taxes 14,177 17,562
Accrued expenses 51,420 37,807
Current maturities of long-term debt and capital lease
obligations 2,199 1,971
Accrued restructuring costs 431 958
Deferred income taxes, net 16 17
Total current liabilities 118,007 117,743
------- -------
LONG-TERM LIABILITIES
Long-term debt and capital lease obligations 335,811 332,825
Accrued expenses 34,198 23,219
Deferred income taxes, net 24,824 27,453
Total long-term liabilities 394,833 383,497
------- -------
SHAREHOLDERS' EQUITY
Common stock, $0.01 par value; 150,000,000 shares authorized,
46,753,585 and 47,378,794 shares issued and outstanding,
respectively 470 475
Additional paid-in capital 436,060 442,585
Accumulated other comprehensive loss (16,603) (6,545)
Accumulated deficit (172,253) (181,525)
Total shareholders' equity 247,674 254,990
------- -------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $760,514 $756,230
======== ========
PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited, in thousands)
Nine Months Ended
September 30,
-------------
2015 2014
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $9,272 $13,766
Loss from discontinued operations, net of taxes 453 283
--- ---
Net income from continuing operations 9,725 14,049
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation 26,350 26,248
Amortization 12,399 7,549
Amortization of debt issuance costs 546 491
Net legal settlements and related expenses (21) 172
Payments for legal settlements and related expenses (116) (170)
Deferred income taxes (1,598) 1,096
Restructuring costs 4,195 68
Payments for restructuring costs (4,559) (1,816)
Asset impairments 151 4,938
Equity-based compensation 9,821 7,544
Excess tax benefits from share-based payment arrangements (215) (448)
Provision for doubtful accounts 467 203
Acquisition/divestiture-related costs 6,021 5,838
Cash paid for acquisition/divestiture-related costs (5,056) (5,411)
Changes in working capital, net of business acquisitions (16,556) (6,460)
Net cash provided by operating activities from continuing operations 41,554 53,891
------ ------
Net cash used in operating activities from discontinued operations (508) (259)
---- ----
Net cash provided by operating activities 41,046 53,632
------ ------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (27,997) (26,562)
Business acquisitions, net of cash acquired (16,109) (55,517)
Other investing activities, net (301) 2,046
Net cash used in investing activities from continuing operations (44,407) (80,033)
------- -------
Net cash used in investing activities from discontinued operations - -
--- ---
Net cash used in investing activities (44,407) (80,033)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments under borrowing arrangements (81,971) (99,509)
Proceeds from borrowing arrangements 83,500 137,000
Payments of debt issuance costs - (1,060)
Payment of earn-out liability (1,841) -
Excess tax benefits of share-based payment arrangements 215 448
Purchases and retirement of treasury stock, at cost (15,605) (25,844)
Exercise of stock options - 963
Net cash (used in) provided by financing activities from continuing operations (15,702) 11,998
------- ------
Net cash (used in) provided by financing activities from discontinued operations - -
--- ---
Net cash (used in) provided by financing activities (15,702) 11,998
------- ------
Effect of exchange rate changes on cash and equivalents (1,840) (1,047)
------ ------
NET DECREASE IN CASH AND EQUIVALENTS (20,903) (15,450)
------- -------
CASH AND EQUIVALENTS, beginning of period 40,220 44,955
CASH AND EQUIVALENTS, end of period $19,317 $29,505
======= =======
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,
------------- -------------
2015 2014 2015 2014
---- ---- ---- ----
Non-GAAP Revenue (1)
$140,967 $140,383 $427,593 $427,909
Net revenue, as reported
143 - 891 -
Impact of purchase accounting adjustments related to deferred revenue (2)
$141,110 $140,383 $428,484 $427,909
Non-GAAP revenue
Non-GAAP Gross Margin (1)
$84,665 $82,418 $257,250 $251,401
Gross margin, as calculated
143 - 891 -
Impact of purchase accounting adjustments related to deferred revenue (2)
$84,808 $82,418 $258,141 $251,401
Non-GAAP gross margin
60.1% 58.7% 60.2% 58.8%
As a percentage of Non-GAAP revenue
Non-GAAP Operating Income & Adjusted EBITDA (1)
$6,896 $3,657 $19,805 $24,876
Operating income, as reported
143 - 891 -
Impact of purchase accounting adjustments related to deferred revenue (2)
3,756 2,660 9,821 7,544
Equity-based compensation
3,962 2,582 12,399 7,549
Amortization
331 - 331 -
Excise and sales tax expense
49 68 4,195 68
Restructuring costs
1 4,938 151 4,938
Asset impairments
(10) 172 (21) 172
Net legal settlements and related expenses
2,421 2,147 6,021 5,838
Acquisition/divestiture-related costs
$17,549 $16,224 $53,593 $50,985
Non-GAAP operating income
8,886 8,697 26,350 26,248
Depreciation
$26,435 $24,921 $79,943 $77,233
Adjusted EBITDA
Non-GAAP Net Income from Continuing Operations (1)
$3,458 $2,646 $9,725 $14,049
Net income from continuing operations, as reported
103 - 642 -
Impact of purchase accounting adjustments related to deferred revenue (2)
(1,355) (1,158) (1,903) (683)
Elimination of non-recurring tax adjustments and related interest
2,704 1,835 7,071 5,205
Equity-based compensation
2,852 1,782 8,927 5,209
Amortization
238 - 238 -
Excise and sales tax expense
35 47 3,020 47
Restructuring costs
1 3,407 109 3,407
Asset impairments
(7) 119 (15) 119
Net legal settlements and related expenses
1,743 1,481 4,335 4,028
Acquisition/divestiture-related costs
710 (495) 439 (350)
Foreign exchange transaction (gain) loss (3)
$10,482 $9,664 $32,588 $31,031
Non-GAAP net income from continuing operations
Non-GAAP Diluted EPS from Continuing Operations (1) (4)
$0.08 $0.06 $0.22 $0.30
Diluted net income per share from continuing operations, as reported
- - 0.01 -
Impact of purchase accounting adjustments related to deferred revenue (2)
(0.03) (0.03) (0.04) (0.01)
Elimination of non-recurring tax adjustments and related interest
0.06 0.04 0.16 0.11
Equity-based compensation
0.06 0.04 0.20 0.11
Amortization
0.01 - 0.01 -
Excise and sales tax expense
- - 0.07 -
Restructuring costs
- 0.07 - 0.07
Asset impairments
- - - -
Net legal settlements and related expenses
0.04 0.03 0.10 0.09
Acquisition/divestiture-related costs
0.02 (0.01) 0.01 (0.01)
Foreign exchange transaction gain (3)
$0.23 $0.21 $0.72 $0.67
Non-GAAP diluted EPS from continuing operations
(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/
divestiture-
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
fluctuations in fluctuations in
Q3 - 15 foreign currency Q3 - 15 Q3 - 15 foreign currency Q3 - 15(Actual)
(Constant exchange rates (Actual) (Constant exchange rates
currency) currency)
(Unaudited, in thousands, except per share data) (Unaudited, in thousands, except per share data)
----------------------------------------------- -----------------------------------------------
Net Revenue $146,568 $(5,601) $140,967 $444,640 $(17,047) $427,593
North America Net Revenue $90,312 $(553) $89,759 $273,541 $(1,386) $272,155
Europe Net Revenue $39,256 $(3,242) $36,014 $121,786 $(11,213) $110,573
Asia Pacific Net Revenue $17,000 $(1,806) $15,194 $49,313 $(4,448) $44,865
Non-GAAP Operating Income $17,880 $(331) $17,549 $54,801 $(1,208) $53,593
Adjusted EBITDA $27,201 $(766) $26,435 $82,142 $(2,199) $79,943
Non-GAAP Net Income from Continuing Operations $10,825 $(343) $10,482 $33,559 $(971) $32,588
Non-GAAP Diluted EPS from Continuing Operations $0.24 $(0.01) $0.23 $0.74 $(0.02) $0.72
(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
(Q3-14 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 (Q3-14 QTD
and YTD) average
exchange rates.
Sequential Quarter Constant Currency Adjustments (6)
Impact of
Q3 - 15 fluctuations in Q3 - 15
(Constant foreign currency (Actual)
currency) exchange rates
-------- --------------
(Unaudited, in thousands)
$141,384 $(417) $140,967
Net Revenue
(6) Management
also presents
net revenue
on a constant
currency
basis
compared to
the prior
quarter
(Q2-15) 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
(Q2-15)
average
exchange
rates.
Organic Growth (7)
Impact of
September 30, fluctuations in Acquisitions Organic net September 30, Organic net
2014 foreign currency revenue 2015 revenue
exchange rates growth growth rate
-------------- ------ -----------
(Unaudited, in thousands, except percentages)
Net Revenue, Three Months Ended $140,383 $(5,323) $9,984 $(4,077) $140,967 -2.9%
Net Revenue, Nine Months Ended $427,909 $(16,276) $29,470 $(13,510) $427,593 -3.2%
(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 Q3-15
----- ----- ----- ----- ------- ----- ----- ----- ----- ------- ----- ----- -----
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 $22,188
Adjustment (8) - - - - - - - - 435 435 276 201 91
------------- --- --- --- --- --- --- --- --- --- ---
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 22,279
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 $10,862
(8) Adjusted for the impact of purchase accounting related to deferred revenue. See footnote 2.
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