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Press release from Business Wire

PGi Reports Third Quarter 2010 Results: Revenues $142.3M, Non-GAAP Diluted EPS from Continuing Operations $0.18*

<p class='bwalignc'> <i>PGi Driving for Growth as a Pure Play Virtual Meetings Company</i> </p>

Thursday, October 21, 2010

PGi Reports Third Quarter 2010 Results: Revenues $142.3M, Non-GAAP Diluted EPS from Continuing Operations $0.18*16:12 EDT Thursday, October 21, 2010 ATLANTA (Business Wire) -- Premiere Global Services, Inc. (NYSE: PGI), a global software and services company that enables real-time, virtual group meetings, today announced results for the third quarter ended September 30, 2010. Consolidated net revenues totaled $142.3 million in the third quarter of 2010, including $109.5 million from the company's PGiMeet solutions. In the third quarter of 2010, diluted EPS from continuing operations was $0.06, and non-GAAP diluted EPS from continuing operations was $0.18.* In the third quarter of 2009, consolidated net revenues totaled $148.0 million, including $111.4 million from the company's PGiMeet solutions, diluted EPS from continuing operations was ($0.08), and non-GAAP diluted EPS from continuing operations was $0.20.* Results for 2009 are adjusted to reflect the company's email marketing business as discontinued operations. “While operating through a challenging global economy, we've spent the past year focusing and streamlining our organization to position PGi for growth and improved profitability,” said Boland T. Jones, PGi founder, chairman and CEO. “We remain very excited about our future – with a growing market opportunity, a new suite of proprietary, next generation meetings solutions and a singular focus on becoming the best virtual meetings company in the world.” Nine Month Results Consolidated net revenues totaled $433.2 million in the nine months ended September 30, 2010, including $332.9 million from the company's PGiMeet solutions. In the first nine months of 2010, diluted EPS from continuing operations totaled $0.27, and non-GAAP diluted EPS from continuing operations was $0.56.* In the nine months ended September 30, 2009, consolidated net revenues totaled $457.0 million, including $346.0 million from the company's PGiMeet solutions. In the first nine months of 2009, diluted EPS from continuing operations totaled $0.26, and non-GAAP diluted EPS from continuing operations was $0.72.* Fourth Quarter 2010 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. The company assumes no duty to update any forward-looking statements made in this press release. This afternoon, PGi announced the completed sale of its PGiSend messaging business. In the fourth quarter of 2010, results from the company's PGiSend business will be included in discontinued operations. (See Appendixes A and B for historical pro forma results from continuing operations, excluding the PGiSend business.) Based on current trends and foreign currency exchange rates, the company anticipates revenue from continuing operations in the fourth quarter of 2010 will be in the range of $107-$109 million, and non-GAAP diluted EPS from continuing operations will be in the range of $0.09-$0.11*, including marketing and advertising costs associated with the launch of its new virtual meetings solutions. PGi will host a conference call this afternoon 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) 926-7061 (U.S. and Canada) or (913) 981-5518 (International). The conference call will simultaneously be webcast. Please visit www.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 consolidated net revenues, segment net revenues and certain solutions revenue, 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 is a global software and services company that enables real-time, virtual meetings. For almost 20 years, we have innovated technologies to empower people to connect, collaborate and come together in more enjoyable and productive ways. Every month, we bring together over 15 million people in nearly 4 million virtual meetings. Headquartered in Atlanta, PGi has a presence in 24 countries worldwide and an established base of greater than 30,000 customers, including 75% of the Fortune 100. For more information, visit us at www.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. 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; the development of alternatives to our services; general domestic and international economic, business or political conditions; risks associated with challenging global economic conditions or a prolonged recession, including customer consolidations, restructuring, bankruptcies or payment defaults; market acceptance of our new services and enhancements, including iMeet®; our ability to complete acquisitions and successfully integrate acquired operations; concerns regarding the security of sending information over the Internet and public networks; our ability to upgrade our equipment or increase our network capacity; service interruptions; our dependence on telecommunications supply agreements; increased financial leverage; our dependence on our subsidiaries for cash flow; future write-downs of goodwill or other intangible assets; assessments of income, sales and other taxes for which we have not accrued; our ability to attract and retain key personnel; our ability to protect our proprietary technology and intellectual property rights; our ability to successfully manage the impact of the divestiture of our PGiSend business, including any financial impact from the loss of PGiSend revenue or earnings; possible adverse results of pending or future litigation or infringement claims; federal, state or international legislative or regulatory changes, including further government regulations applicable to traditional telecommunications service providers; risks associated with international operations and fluctuations in currency exchange rates; changes in and the successful execution of restructuring and cost reduction initiatives and the market reaction thereto and other factors described from time to time in our press releases, reports and other filings with the SEC, including but not limited to the “Risk Factors” sections of our Annual Report on Form 10-K for the year ended December 31, 2009 and our Quarterly Report on Form 10-Q for the quarter ended March 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.   PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share data)       Three Months Ended     Nine Months EndedSeptember 30,September 30,2010     20092010     2009(Unaudited)(Unaudited)   Net revenues $ 142,254 $ 148,002 $ 433,245 $ 457,017 Operating expenses: Cost of revenues (exclusive of depreciation and amortization shown separately below) 60,970 64,471 183,619 195,469 Selling and marketing 33,253 34,540 105,295 107,255 General and administrative (exclusive of expenses shown separately below) 16,626 16,655 49,732 48,514 Research and development 4,861 4,575 14,348 12,558 Excise and sales tax expense - - 439 - Depreciation 9,817 9,458 29,692 27,180 Amortization 1,681 2,515 5,839 8,272 Restructuring costs 4,997 13,304 8,183 19,585 Asset impairments 489 3,615 2,431 3,615 Net legal settlements and related expenses 83 51 275 212 Acquisition-related costs   -     41     316     612   Total operating expenses   132,777     149,225     400,169     423,272     Operating income (loss)   9,477     (1,223 )   33,076     33,745     Other (expense) income: Interest expense (3,183 ) (3,286 ) (10,306 ) (11,077 ) Unrealized gain on change in fair value of interest rate swaps 254 786 1,228 2,872 Interest income 38 86 109 266 Other, net   (1,064 )   (220 )   (1,235 )   (310 ) Total other expense   (3,955 )   (2,634 )   (10,204 )   (8,249 )   Income (loss) from continuing operations before income taxes 5,522 (3,857 ) 22,872 25,496 Income tax expense   1,712     699     7,090     10,279   Net income (loss) from continuing operations   3,810     (4,556 )   15,782     15,217     Loss on discontinued operations, net of taxes - (8,060 ) - (9,824 )         Net income (loss) $ 3,810   $ (12,616 ) $ 15,782   $ 5,393     BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING   58,548     59,049     58,380     58,907     Basic net income (loss) per share Continuing operations $ 0.07 $ (0.08 ) $ 0.27 $ 0.26 Discontinued operations   -     (0.14 )   -     (0.17 ) Net income (loss) per share $ 0.07   $ (0.21 ) $ 0.27   $ 0.09     DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING   58,898     59,049     58,737     59,457     Diluted net income (loss) per share Continuing operations $ 0.06 $ (0.08 ) $ 0.27 $ 0.26 Discontinued operations   -     (0.14 )   -     (0.17 ) Net income (loss) per share $ 0.06   $ (0.21 ) $ 0.27   $ 0.09     PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(in thousands, except share data)       September 30,     December 31,20102009(Unaudited)ASSETSCURRENT ASSETS Cash and equivalents $ 47,319 $ 41,402 Accounts receivable (less allowances of $1,484 and $1,702, respectively) 94,882 89,906 Prepaid expenses and other current assets 15,389 10,735 Deferred income taxes, net   7,132     7,261   Total current assets   164,722     149,304     PROPERTY AND EQUIPMENT, NET 139,292 137,235   OTHER ASSETS Goodwill 354,145 354,609 Intangibles, net of amortization 18,798 24,840 Deferred income taxes, net 3,697 2,703 Restricted cash 111 103 Other assets   12,169     9,432   TOTAL ASSETS $ 692,934   $ 678,226     LIABILITIES AND SHAREHOLDERS' EQUITYCURRENT LIABILITIES Accounts payable $ 45,489 $ 51,502 Income taxes payable 4,505 4,507 Accrued taxes, other than income taxes 6,988 6,947 Accrued expenses 26,336 28,543 Current maturities of long-term debt and capital lease obligations 7,792 3,596 Accrued restructuring costs   8,339     7,765   Total current liabilities   99,449     102,860     LONG-TERM LIABILITIES Long-term debt and capital lease obligations 257,089 262,927 Accrued restructuring costs 4,004 5,392 Accrued expenses 19,632 17,133 Deferred income taxes, net   8,708     8,872   Total long-term liabilities   289,433     294,324     SHAREHOLDERS' EQUITY Common stock, $0.01 par value; 150,000,000 shares authorized, 60,407,208 and 59,392,311 shares issued and outstanding, respectively 604 594 Additional paid-in capital 550,099 544,896 Notes receivable, shareholder (1,895 ) (1,814 ) Accumulated other comprehensive gain 8,313 6,217 Accumulated deficit   (253,069 )   (268,851 ) Total shareholders' equity   304,052     281,042   TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 692,934   $ 678,226     PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)       Nine Months EndedSeptember 30,2010     2009(Unaudited)CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 15,782 $ 5,393 Loss from discontinued operations, net of taxes   -     9,824   Net income from continuing operations 15,782 15,217 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 29,692 27,180 Amortization 5,839 8,272 Amortization of debt issuance costs 667 455 Write-off of unamortized debt issuance costs 161 - Net legal settlements and related expenses 275 212 Payments for legal settlements and related expenses (213 ) - Deferred income taxes, net of effect of acquisitions (1,228 ) (4,468 ) Restructuring costs 8,183 19,585 Payments for restructuring costs (8,823 ) (4,790 ) Asset impairments 2,431 3,615 Equity-based compensation 7,194 8,324 Excess tax benefits from share-based payment arrangements (2 ) (311 ) Unrealized gain on change in fair value of interest rate swaps (1,228 ) (2,872 ) Provision for doubtful accounts 1,110 707 Changes in working capital   (10,731 )   (484 ) Net cash provided by operating activities from continuing operations   49,109     70,642   Net cash used in operating activities from discontinued operations   -     (2,251 ) Net cash provided by operating activities   49,109     68,391     CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (30,512 ) (32,100 ) Other investing activities (210 ) 101 Business acquisitions, net of cash acquired   (491 )   (8,151 ) Net cash used in investing activities from continuing operations   (31,213 )   (40,150 ) Net cash used in investing activities from discontinued operations   -     (2,616 ) Net cash used investing activities   (31,213 )   (42,766 )     CASH FLOWS FROM FINANCING ACTIVITIES Principal payments under borrowing arrangements (120,605 ) (167,207 ) Proceeds from borrowing arrangements 110,844 153,316 Payment of debt issuance costs (1,165 ) (147 ) Repayment of shareholder notes - 93 Excess tax benefits from share-based payment arrangements 2 311 Purchase of treasury stock, at cost (1,638 ) (4,681 ) Exercise of stock options   -     554   Net cash used in financing activities   (12,562 )   (17,761 )   Effect of exchange rate changes on cash and equivalents   583     1,689     NET INCREASE IN CASH AND EQUIVALENTS   5,917     9,553   CASH AND EQUIVALENTS, beginning of period   41,402     27,535   CASH AND EQUIVALENTS, end of period $ 47,319   $ 37,088     PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL MEASURES(in thousands, except per share data)       Three Months Ended     Nine Months EndedSeptember 30,September 30,2010     20092010     2009(Unaudited)(Unaudited)Non-GAAP Operating Income (1) Operating income (loss), as reported $ 9,477 $ (1,223 ) $ 33,076 $ 33,745 Restructuring costs 4,997 13,304 8,183 19,585 Excise and sales tax expense - - 439 - Asset impairments 489 3,615 2,431 3,615 Net legal settlements and related expenses 83 51 275 212 Equity-based compensation 2,236 2,518 7,194 8,324 Acquisition-related costs - 41 316 612 Amortization   1,681     2,515     5,839     8,272   Non-GAAP operating income $ 18,963   $ 20,821   $ 57,753   $ 74,365     Non-GAAP Net Income from Continuing Operations (1) Net income (loss) from continuing operations, as reported $ 3,810 $ (4,556 ) $ 15,782 $ 15,217 Elimination of non-recurring tax adjustments - 1,952 - 2,401 Unrealized gain on change in fair value of interest rate swaps (175 ) (531 ) (847 ) (1,939 ) Restructuring costs 3,448 8,980 5,646 13,220 Excise and sales tax expense - - 303 - Excise and sales tax interest - - 448 - Asset impairments 337 2,440 1,677 2,440 Net legal settlements and related expenses 57 34 190 143 Equity-based compensation 1,543 1,700 4,964 5,619 Acquisition-related costs - 28 218 413 Amortization 1,160 1,698 4,029 5,584 Non-recurring foreign exchange losses 205 - 205 - Debt refinance costs   -     -     270     -   Non-GAAP net income from continuing operations $ 10,385   $ 11,745   $ 32,885   $ 43,098     Non-GAAP Diluted EPS from Continuing Operations (1) Diluted net income (loss) per share from continuing operations, as reported $ 0.06 $ (0.08 ) $ 0.27 $ 0.26 Elimination of non-recurring tax adjustments - 0.03 - 0.04 Unrealized gain on change in fair value of interest rate swaps - (0.01 ) (0.01 ) (0.03 ) Restructuring costs 0.06 0.15 0.10 0.22 Excise and sales tax expense - - 0.01 - Excise and sales tax interest - - 0.01 - Asset impairments 0.01 0.04 0.03 0.04 Net legal settlements and related expenses - - - - Equity-based compensation 0.03 0.03 0.08 0.09 Acquisition-related costs - - - 0.01 Amortization 0.02 0.03 0.07 0.09 Non-recurring foreign exchange losses - - - - Debt refinance costs   -     -     -     -   Non-GAAP diluted EPS from continuing operations $ 0.18   $ 0.20   $ 0.56   $ 0.72     (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.   PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESRECONCILIATION OF NON-GAAPCONSTANT CURRENCY ADJUSTMENTS AND ORGANIC GROWTH   Prior Year Quarter Constant Currency Adjustments (2)           Impact of fluctuations                 Q3 - 10in foreign currencyQ3 - 10(Constant currency)exchange rates(Actual)(Unaudited, in thousands, except per share data)   Consolidated Net Revenues $ 141,998 $ 256 $ 142,254 North America Net Revenue $ 88,580 $ 132 $ 88,712 Europe Net Revenue $ 26,785 $ (1,520 ) $ 25,265 Asia Pacific Net Revenue $ 26,633 $ 1,644 $ 28,277 PGiMeet Solutions Revenue $ 109,579 $ (83 ) $ 109,496 Non-GAAP Operating Income $ 18,863 $ 100 $ 18,963 Non-GAAP Net Income from Continuing Operations $ 10,691 $ (306 ) $ 10,385 Non-GAAP Diluted EPS from Continuing Operations $ 0.18 $ - $ 0.18   (2) Management also presents these non-GAAP financial measures, as well as consolidated net revenues, segment net revenue and certain solutions 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 - 09) average exchange rates.   Sequential Quarter Constant Currency Adjustments (3)Impact of fluctuationsQ3 - 10in foreign currencyQ3 - 10(Constant currency)exchange rates(Actual)(Unaudited, in thousands)   Consolidated Net Revenues $ 140,791 $ 1,463 $ 142,254   (3) Management also presents consolidated 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 - 10) average exchange rates.   Organic Growth (4)   Impact of fluctuationsOrganicOrganic netSeptember 30,in foreign currencyImpact ofnet revenueSeptember 30,revenue2009exchange ratesacquisitionsgrowth2010growth rate(Unaudited, in thousands, except percentages)   Consolidated Net Revenues, Three Months Ended $ 148,002 $ 256 $ - $ (6,004 ) $ 142,254 -4.1 %   Consolidated Net Revenues, Nine Months Ended $ 457,017 $ 6,196 $ 346 $ (30,314 ) $ 433,245 -6.6 %   PGiMeet Solutions Revenue, Three Months Ended $ 111,404 $ (83 ) $ - $ (1,825 ) $ 109,496 -1.6 %   PGiMeet Solutions Revenue, Nine Months Ended $ 345,973 $ 3,953 $ 346 $ (17,344 ) $ 332,928 -5.0 %   (4) 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.   Appendix APREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited, in thousands, except per share data)   PRO FORMA CONTINUING OPERATIONS (Excludes PGiSend Business)       Q3-2009     Q4-2009     Q1-2010     Q2-2010     Q3-2010     Net revenues $ 111,404 $ 107,989 $ 112,495 $ 110,937 $ 109,497 Operating expenses: Cost of revenues (exclusive of depreciation and amortization shown separately below) 45,092 42,958 44,075 45,356 44,834 Selling and marketing 28,152 29,646 32,968 28,791 28,502 General and administrative (exclusive of expenses shown separately below) 14,359 14,871 14,450 14,550 14,955 Research and development 3,092 2,796 3,577 3,358 3,660 Excise and sales tax expense - - - 439 - Depreciation 5,700 5,998 6,332 6,209 6,375 Amortization 2,486 2,357 2,238 1,874 1,658 Restructuring costs 5,466 2,280 232 1,851 4,824 Asset impairments 642 42 38 91 47 Net legal settlements and related expenses 9 182 339 41 35 Acquisition-related costs   41     -     174     142     -   Total operating expenses   105,039     101,130     104,423     102,702     104,890     Operating income   6,365     6,859     8,072     8,235     4,607     Other (expense) income: Interest expense (2,766 ) (1,935 ) (2,417 ) (3,905 ) (2,814 ) Unrealized gain on change in fair value of interest rate swaps 786 494 484 490 254 Interest income 86 153 35 36 38 Other, net   (243 )   114     10     74     (790 ) Total other expense, net   (2,137 )   (1,174 )   (1,888 )   (3,305 )   (3,312 )   Income from continuing operations before income taxes 4,228 5,685 6,184 4,930 1,295 Income tax expense   1,374     1,848     1,732     1,380     363   Net income from continuing operations   2,854     3,837     4,452     3,550     932     Income (loss) on discontinued operations, net of taxes (15,470 ) 4,379 3,120 850 2,878           Net income (loss) $ (12,616 ) $ 8,216   $ 7,572   $ 4,400   $ 3,810     BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING   59,049     58,576     58,220     58,367     58,548     Basic net income (loss) per share Continuing operations $ 0.05 $ 0.07 $ 0.08 $ 0.06 $ 0.02 Discontinued operations   (0.26 )   0.07     0.05     0.01     0.05   Net income (loss) per share $ (0.21 ) $ 0.14   $ 0.13   $ 0.08   $ 0.07     DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING   59,564     58,880     58,535     58,774     58,898     Diluted net income (loss) per share Continuing operations $ 0.05 $ 0.07 $ 0.08 $ 0.06 $ 0.02 Discontinued operations   (0.26 )   0.07     0.05     0.01     0.05   Net income (loss) per share $ (0.21 ) $ 0.14   $ 0.13   $ 0.07   $ 0.06     The sum of the quarters may differ from annual results due to rounding and the impact of the difference in weighted shares outstanding for the stand-alone periods.   Appendix BPREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL MEASURES(Unaudited, in thousands, except per share data)   PRO FORMA CONTINUING OPERATIONS (Excludes PGiSend Business)       Q3-2009     Q4-2009     Q1-2010     Q2-2010     Q3-2010   Non-GAAP Operating Income (1) Operating income, as reported $ 6,365 $ 6,859 $ 8,072 $ 8,235 $ 4,607 Restructuring costs 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 9 182 339 41 35 Equity-based compensation 2,468 2,372 2,603 2,217 2,158 Acquisition-related costs 41 - 174 142 - Amortization   2,486     2,357     2,238     1,874     1,658   Non-GAAP operating income $ 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 $ 2,854 $ 3,837 $ 4,452 $ 3,550 $ 932 Elimination of tax adjustments 55 74 - - - Unrealized gain on change in fair value of interest rate swaps (541 ) (340 ) (348 ) (353 ) (183 ) Restructuring costs 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 6 125 244 30 25 Equity-based compensation 1,698 1,632 1,874 1,596 1,554 Acquisition-related costs 28 - 125 102 - Amortization 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 $ 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 $ 0.05 $ 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 ) - Restructuring costs 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 Acquisition-related costs - - - - - Amortization 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 $ 0.17   $ 0.15   $ 0.14   $ 0.15   $ 0.12     The sum of the quarters may differ from annual results due to rounding and the impact of the difference in weighted shares outstanding for the stand-alone periods.   (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. Premiere Global Services, Inc.Sean O?Brien, 404-262-8462Senior Vice PresidentStrategy & Communications