Advanstar Reports a Strong First Quarter
Staff -- Tradeshow Week, 5/15/2006
Improved results in its fashion, health care and powersports groups helped Advanstar Communications turn in a strong first-quarter performance.
The company generated $106.6 million in revenue during the first three months of 2006, up from $90.6 million in the first three months of 2005. Operating income of $30.6 million compared with $21.7 million in the year-ago quarter.
"We're seeing the results of our business strategy as well as our operating structure," CFO Dave Montgomery told analysts during a conference call.
The $48.1 million in revenue for the fashion and licensing group represented a 30-percent increase over the $36.9 million produced in the first quarter of last year. It accounted for nearly half of Advanstar's quarterly revenue, boosted by the acquired POOL Tradeshow and Project Tradeshow joining MAGIC Marketplace in Las Vegas Feb. 21–24.
President and CEO Joe Loggia said square footage, yields and sponsorships were up at the spring MAGIC, which generated an additional $8.2 million in revenue this year.
The powersports division produced $21.2 million in revenue, up 14 percent from $18.6 million in the year-ago quarter. Show revenue was up 11 percent and square footage up 8 percent due to a strong turnout for the Feb. 18–20 Dealernews Intl. Powersports Dealer Expo at the Indiana Convention Center & RCA Dome in Indianapolis.
In life sciences, revenue of $35.1 million represented a 7-percent increase over the $32.7 million reported in the year-ago quarter.
Advanstar spent much of 2005 restructuring its operations. In addition to selling five divisions to Questex Media Group for $185 million last May, Advanstar also closed five offices.
Beginning in the first quarter of this year, the company departed from its practice of separating publishing and tradeshow revenue, in favor of breaking down revenue and income by division.
