Back to GetFilings.com



Table of Contents
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
Form 10-Q
 
x
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2002
 
Or
 
¨
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the Transition Period from                      to                     
 
Commission file number : 0-27778
 
PTEK HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
 
 
Georgia
  
59-3074176
(State or other jurisdiction of
incorporation or organization)
  
(I.R.S. Employer
Identification No.)
 
3399 PEACHTREE ROAD NE
THE LENOX BUILDING, SUITE 700
ATLANTA, GEORGIA 30326
(Address of principal executive offices, including zip code)
 
(404) 262-8400
(Registrant’s telephone number including area code)
 
N/A
(Former name, former address and former fiscal year, if changed since last report)
 
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.  
(1)    Yes  x    No  ¨                                (2)    Yes   x    No  ¨                 
 
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
 
Class
  
Outstanding at August 9, 2002
 
Common Stock, $0.01 par value
  
54,787,091 Shares
 
 

Table of Contents
 
PTEK HOLDINGS, INC. AND SUBSIDIARIES
 
INDEX TO FORM 10-Q
 
           
Page No.
PART I
          
Item 1
          
         
  1
         
  2
         
  3
         
  4
Item 2
        
14
Item 3
        
24
PART  II
          
Item 1
        
25
Item 2
        
28
Item 3
        
28
Item 4
        
28
Item 5
        
28
Item 6
        
29
    
30
    
31
             

Table of Contents
 
PART I.     FINANCIAL INFORMATION
 
ITEM 1.     FINANCIAL STATEMENTS
 
PTEK HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
 
    
June 30,
2002
     
December 31, 2001
  
ASSETS
   
 
(Unaudited)
 
   
 
(Audited)
 
    
  
CURRENT ASSETS
                  
Cash and cash equivalents
   
$
53,406
 
   
$
48,023
 
Marketable securities, available for sale
   
 
616
 
   
 
1,477
 
Accounts receivable (less allowance of $7,142 and $8,278, respectively)
   
 
66,349
 
   
 
58,613
 
Federal income tax receivable
   
 
—  
 
   
 
9,208
 
Prepaid expenses and other
   
 
8,090
 
   
 
7,982
 
Deferred income taxes, net
   
 
14,683
 
   
 
13,743
 
    
  
Total current assets
   
 
143,144
 
   
 
139,046
 
    
  
PROPERTY AND EQUIPMENT, NET
   
 
65,154
 
   
 
91,349
 
OTHER ASSETS
                  
Goodwill
   
 
123,066
 
   
 
123,066
 
Intangibles, net
   
 
15,728
 
   
 
21,880
 
Deferred income taxes, net
   
 
10,696
 
   
 
6,923
 
Other assets
   
 
3,838
 
   
 
4,174
 
    
  
    
$
361,626
 
   
$
386,438
 
    
  
LIABILITIES AND SHAREHOLDERS’ EQUITY
                  
CURRENT LIABILITIES
                  
Accounts payable
   
$
49,386
 
   
$
56,862
 
Deferred revenue
   
 
19
 
   
 
452
 
Accrued taxes
   
 
15,621
 
   
 
16,031
 
Accrued liabilities
   
 
31,867
 
   
 
42,733
 
Current maturities of long-term debt and capital lease obligations
   
 
4,280
 
   
 
6,124
 
Accrued restructuring, merger costs and other special charges
   
 
1,202
 
   
 
3,728
 
    
  
Total current liabilities
   
 
102,375
 
   
 
125,930
 
    
  
LONG-TERM LIABILITIES
                  
Convertible subordinated notes
   
 
172,500
 
   
 
172,500
 
Long-term debt and capital lease obligations
   
 
5,559
 
   
 
8,552
 
Other accrued liabilities
   
 
5,216
 
   
 
424
 
    
  
Total long-term liabilities
   
 
183,275
 
   
 
181,476
 
    
  
COMMITMENTS AND CONTINGENCIES (Note 9)
                  
SHAREHOLDERS’ EQUITY
                  
Common stock, $0.01 par value; 150,000,000 shares authorized, 58,284,393 and 56,984,575 shares issued at June 30, 2002 and December 31, 2001, respectively, and 54,767,093 and 53,584,639 shares issued and outstanding at June 30, 2002 and December 31, 2001, respectively
   
 
582
 
   
 
569
 
Unrealized gain on marketable securities, available for sale
   
 
247
 
   
 
722
 
Additional paid-in capital
   
 
600,761
 
   
 
597,885
 
Unearned restricted stock compensation
   
 
(2,461
)
   
 
(3,860
)
Treasury stock, at cost
   
 
(16,031
)
   
 
(15,494
)
Note receivable, shareholder
   
 
(4,593
)
   
 
(4,593
)
Cumulative translation adjustment
   
 
(4,271
)
   
 
(5,775
)
Accumulated deficit
   
 
(498,258
)
   
 
(490,422
)
    
  
Total shareholders’ equity
   
 
75,976
 
   
 
79,032
 
    
  
    
$
361,626
 
   
$
386,438
 
    
  
 
Accompanying notes are integral to these unaudited condensed consolidated financial statements.
 

1

Table of Contents
 
PTEK HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
 
    
Three Months Ended
     
Six Months Ended
  
    
 
 
June 30,
2002
 
 
   
 
 
June 30,
2001
 
 
   
 
 
June 30,
2002
 
 
   
 
 
June 30,
2001
 
 
    
  
  
  
    
(Unaudited)
   
(Unaudited)
REVENUES
   
$
87,408
 
   
$
84,053
 
   
$
170,729
 
   
$
166,387
 
TELECOMMUNICATIONS COSTS
   
 
17,077
 
   
 
19,048
 
   
 
33,878
 
   
 
39,304
 
    
  
  
  
GROSS PROFIT
   
 
70,331
 
   
 
65,005
 
   
 
136,851
 
   
 
127,083
 
DIRECT OPERATING COSTS
   
 
13,378
 
   
 
12,829
 
   
 
26,458
 
   
 
24,787
 
    
  
  
  
CONTRIBUTION MARGIN
   
 
56,953
 
   
 
52,176
 
   
 
110,393
 
   
 
102,296
 
    
  
  
  
OTHER OPERATING EXPENSES:
                                    
Selling and marketing
   
 
22,729
 
   
 
18,563
 
   
 
44,998
 
   
 
37,331
 
General and administrative
   
 
12,928
 
   
 
14,205
 
   
 
25,777
 
   
 
28,381
 
Research and development
   
 
1,828
 
   
 
2,847
 
   
 
4,036
 
   
 
5,436
 
Depreciation
   
 
5,782
 
   
 
5,070
 
   
 
11,016
 
   
 
10,117
 
Amortization
   
 
2,362
 
   
 
23,095
 
   
 
6,153
 
   
 
45,445
 
Restructuring costs
   
 
—  
 
   
 
2,066
 
   
 
—  
 
   
 
2,066
 
Equity based compensation
   
 
181
 
   
 
2,217
 
   
 
1,326
 
   
 
2,217
 
Legal settlements
   
 
3,275
 
   
 
—  
 
   
 
3,275
 
   
 
—  
 
    
  
  
  
Total operating expenses
   
 
49,085
 
   
 
68,063
 
   
 
96,581
 
   
 
130,993
 
    
  
  
  
OPERATING INCOME (LOSS)
   
 
7,868
 
   
 
(15,887
)
   
 
13,812
 
   
 
(28,697
)
    
  
  
  
OTHER INCOME (EXPENSE):
                                    
Interest, net
   
 
(2,774
)
   
 
(2,723
)
   
 
(5,656
)
   
 
(5,250
)
Gain on sale of marketable securities
   
 
—  
 
   
 
960
 
   
 
789
 
   
 
2,564
 
Asset impairment and obligations– investments
   
 
—  
 
   
 
(24,440
)
   
 
—  
 
   
 
(29,195
)
Amortization of goodwill – equity investments
   
 
—  
 
   
 
—  
 
   
 
—  
 
   
 
(1,612
)
Other, net
   
 
(53
)
   
 
(543
)
   
 
(83
)
   
 
(922
)
    
  
  
  
Total other income (expense)
   
 
(2,827
)
   
 
(26,746
)
   
 
(4,950
)
   
 
(34,415
)
    
  
  
  
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES