Premiere Global Services Inc. (PGI, Financial) filed Quarterly Report for the period ended 2010-03-31.
Premiere Global Services Inc. has a market cap of $533.83 million; its shares were traded at around $8.89 with a P/E ratio of 12.7 and P/S ratio of 0.89. Premiere Global Services Inc. had an annual average earning growth of 4.9% over the past 10 years.PGI is in the portfolios of Paul Tudor Jones of The Tudor Group, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
During the year ended December 31, 2009, we executed a restructuring plan to consolidate and streamline various functions of our work force. As part of these consolidations we eliminated approximately 500 positions. During the year ended December 31, 2009, we recorded total severance and exit costs of $14.8 million, which included the acceleration of vesting of restricted stock with a fair market value of $0.2 million. Severance costs for 2009 included $0.4 million associated with the decision to divest our PGiMarket business. Additionally, during the year ended December 31, 2009, we recorded $4.4 million of lease termination costs associated with office locations in North America and Europe. The expenses associated with these activities are reflected in Restructuring costs in our condensed consolidated statements of operations. On a segment basis, these restructuring costs totaled $12.0 million in North America, $6.6 million in Europe and $0.6 million in Asia Pacific. We adjusted the initially recorded charge for North America and Europe by $0.4 million and $(0.5) million, respectively, in the three months ended March 31, 2010. Our reserve for the 2009 restructuring costs was $5.9 million at March 31, 2010. We anticipate these severance-related costs will be paid over the next year and these lease termination costs will be paid over the next nine years.
Our reserve for restructuring incurred prior to 2009 is associated with lease termination costs and totaled $3.7 million at March 31, 2010. Amounts paid in cash during the three months ended March 31, 2010 for restructuring costs incurred prior to 2009 totaled $0.2 million. During the year ended December 31, 2009, we revised assumptions used in determining the estimated costs associated with these lease terminations incurred prior to 2009. As a result, we recorded an additional $3.2 million of lease termination costs. During the three months ended March 31, 2010, we made additional adjustments of $0.1 million. The expenses associated with these activities are reflected in Restructuring costs in our condensed consolidated statements of operations. We anticipate these remaining lease termination costs will be paid over the next seven years.
Interest expense decreased to $2.8 million from $4.0 million for the three months ended March 31, 2010 and 2009, respectively. Interest expense decreased as a result of decreased interest rates effective for the unhedged portion of our credit facility mainly attributable to the expiration of one of our interest rate swaps in August 2009. The unhedged portion of our credit facility was $155.0 million and $74.1 million at March 31, 2010 and 2009, respectively. Our effective interest rate on the U.S. Dollar amount of this unhedged portion of our existing credit facility was 1.75% and 2.0% at March 31, 2010 and 2009, respectively. As of March 31, 2010, we have one $100.0 million interest rate swap outstanding which has a fixed rate of 4.75% and expires in August 2010. The weighted-average outstanding balance on our credit facility was $268.1 million and $287.9 million for the three months ended March 31, 2010 and 2009, respectively. The decrease in our weighted average debt outstanding is attributable to the use of our cash flows to pay down our existing credit facility, partially offset by our treasury stock purchases and acquisitions, which we funded in part with borrowings under our existing credit facility.
At March 31, 2010, we had utilized $260.8 million of our existing $375.0 million credit facility, with $255.0 million in borrowings and $5.8 million in letters of credit outstanding. From time to time, we enter into interest rate swaps to reduce our exposure to market risk from changes in interest rates on interest payments associated with our credit facility. As of March 31, 2010, we have one $100.0 million interest rate swap outstanding, which has a fixed rate of 4.75% and expires in August 2010.
As of March 31, 2010, we had $41.5 million in cash and equivalents compared to $41.4 million as of December 31, 2009. Cash balances residing outside of the United States as of March 31, 2010 were $40.0 million compared to $40.4 million as of December 31, 2009. We repatriate cash for repayment of royalties and management fees charged to international locations from the United States. Therefore, we record foreign currency exchange gains and losses resulting from these transactions in Other, net in our condensed consolidated statements of operations. We generally consider intercompany loans with foreign subsidiaries to be permanently invested for the foreseeable future. Therefore, we record foreign currency exchange fluctuations resulting from these transactions in the cumulative translation adjustment account on our condensed consolidated balance sheets. Based on our potential cash position and potential conditions in the capital markets, we could require repayment of these intercompany loans despite the long-term intention to hold them as permanent investments.
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Premiere Global Services Inc. has a market cap of $533.83 million; its shares were traded at around $8.89 with a P/E ratio of 12.7 and P/S ratio of 0.89. Premiere Global Services Inc. had an annual average earning growth of 4.9% over the past 10 years.PGI is in the portfolios of Paul Tudor Jones of The Tudor Group, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
We have historically used our cash flows from operating activities for debt repayments, acquisitions, capital expenditures and stock repurchases. As of March 31, 2010, borrowings under our credit facility were $255.0 million. On May 10, 2010, we closed the refinancing of our existing credit facility by entering into a new, four-year $325.0 million credit facility consisting of a $275.0 million revolver and a $50.0 million Term A Loan. Our new credit facility includes a $75.0 million accordion feature which allows for additional credit commitments up to a maximum of $400.0 million, subject to its term and conditions. See Subsequent Events for a description of our new credit facility.During the year ended December 31, 2009, we executed a restructuring plan to consolidate and streamline various functions of our work force. As part of these consolidations we eliminated approximately 500 positions. During the year ended December 31, 2009, we recorded total severance and exit costs of $14.8 million, which included the acceleration of vesting of restricted stock with a fair market value of $0.2 million. Severance costs for 2009 included $0.4 million associated with the decision to divest our PGiMarket business. Additionally, during the year ended December 31, 2009, we recorded $4.4 million of lease termination costs associated with office locations in North America and Europe. The expenses associated with these activities are reflected in Restructuring costs in our condensed consolidated statements of operations. On a segment basis, these restructuring costs totaled $12.0 million in North America, $6.6 million in Europe and $0.6 million in Asia Pacific. We adjusted the initially recorded charge for North America and Europe by $0.4 million and $(0.5) million, respectively, in the three months ended March 31, 2010. Our reserve for the 2009 restructuring costs was $5.9 million at March 31, 2010. We anticipate these severance-related costs will be paid over the next year and these lease termination costs will be paid over the next nine years.
Our reserve for restructuring incurred prior to 2009 is associated with lease termination costs and totaled $3.7 million at March 31, 2010. Amounts paid in cash during the three months ended March 31, 2010 for restructuring costs incurred prior to 2009 totaled $0.2 million. During the year ended December 31, 2009, we revised assumptions used in determining the estimated costs associated with these lease terminations incurred prior to 2009. As a result, we recorded an additional $3.2 million of lease termination costs. During the three months ended March 31, 2010, we made additional adjustments of $0.1 million. The expenses associated with these activities are reflected in Restructuring costs in our condensed consolidated statements of operations. We anticipate these remaining lease termination costs will be paid over the next seven years.
Interest expense decreased to $2.8 million from $4.0 million for the three months ended March 31, 2010 and 2009, respectively. Interest expense decreased as a result of decreased interest rates effective for the unhedged portion of our credit facility mainly attributable to the expiration of one of our interest rate swaps in August 2009. The unhedged portion of our credit facility was $155.0 million and $74.1 million at March 31, 2010 and 2009, respectively. Our effective interest rate on the U.S. Dollar amount of this unhedged portion of our existing credit facility was 1.75% and 2.0% at March 31, 2010 and 2009, respectively. As of March 31, 2010, we have one $100.0 million interest rate swap outstanding which has a fixed rate of 4.75% and expires in August 2010. The weighted-average outstanding balance on our credit facility was $268.1 million and $287.9 million for the three months ended March 31, 2010 and 2009, respectively. The decrease in our weighted average debt outstanding is attributable to the use of our cash flows to pay down our existing credit facility, partially offset by our treasury stock purchases and acquisitions, which we funded in part with borrowings under our existing credit facility.
At March 31, 2010, we had utilized $260.8 million of our existing $375.0 million credit facility, with $255.0 million in borrowings and $5.8 million in letters of credit outstanding. From time to time, we enter into interest rate swaps to reduce our exposure to market risk from changes in interest rates on interest payments associated with our credit facility. As of March 31, 2010, we have one $100.0 million interest rate swap outstanding, which has a fixed rate of 4.75% and expires in August 2010.
As of March 31, 2010, we had $41.5 million in cash and equivalents compared to $41.4 million as of December 31, 2009. Cash balances residing outside of the United States as of March 31, 2010 were $40.0 million compared to $40.4 million as of December 31, 2009. We repatriate cash for repayment of royalties and management fees charged to international locations from the United States. Therefore, we record foreign currency exchange gains and losses resulting from these transactions in Other, net in our condensed consolidated statements of operations. We generally consider intercompany loans with foreign subsidiaries to be permanently invested for the foreseeable future. Therefore, we record foreign currency exchange fluctuations resulting from these transactions in the cumulative translation adjustment account on our condensed consolidated balance sheets. Based on our potential cash position and potential conditions in the capital markets, we could require repayment of these intercompany loans despite the long-term intention to hold them as permanent investments.
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