Showtime Acquisition Sparks Sales Spike
Staff -- Tradeshow Week, 9/5/2005
Marlton Technologies, parent company of Sparks Exhibits & Environments, reported a steep rise in second-quarter sales, mostly due to its $6.3 million acquisition of Showtime Enterprises in May.
The Philadelphia-based company reported second-quarter revenue of $26 million, up from $20.6 million in the second quarter of 2004. Its net income of $551,000 was up from $501,000 generated in the year-ago quarter.
According to Marlton's quarterly federal filing, sales of tradeshow exhibits accounted for $17.5 million in revenue, up from $13.5 million in the second quarter of 2004. Sales of permanent displays rose to $8.5 million, up from $7.1 million during the second quarter of last year.
Sparks reported an order backlog of $36 million, double the backlog it had at this time last year. Company officials expect to see sales increase this year.
Showtime, a company with $21 million in annual revenue and production facilities in Las Vegas and Paulsboro, N.J., was Marlton's second recent acquisition. In August 2004, the company spent $694,000 to buy Exhibit Crafts, a Los Angeles area exhibit manufacturer, and a 20-percent stake in Intl. Exposition Services, a trade-show shipping and installation provider. The purchase allowed Marlton to move its San Diego office to Los Angeles, but cost it $1.1 million for employee relocation and termination expenses.
Sparks retained former Showtime CEO David Sudjian and Executive Vice President Harold Jensen, along with many of its employees. During the second quarter, the company spent $300,000 to relocate those employees from Paulsboro to Philadelphia.
