Advanstar Fourth-quarter Earnings Up

Within days of being acquired for $1.4 billion by a Veronis Suhler Stevenson-led investment group, Advanstar Communications released its fourth-quarter earnings, which were up 9 percent from $56.7 million in the fourth quarter of 2005 to $61.9 million this year.

"We are pleased with our results for 2006 as we continued our momentum and completed another good year," said Joe Loggia, president and CEO of Advanstar. "Building on our strong growth platform we've established over the past two years, we achieved double-digit increases in both the top line and our adjusted EBITDA (earnings before interest, taxes, depreciation and amortization)."

Annual earnings were also up 12 percent compared with 2005, from $288.9 million to $323.7 million. Advanstar's fashion and licensing segment, which includes MAGIC Marketplace, led the way with a 23-percent increase, followed by 13-percent growth in the Powersports segment, which includes the 13 Cycle World consumer motorcycle shows, and 6-percent growth in the Life Sciences segment, mainly derived from health care projects and dental publications.

The acquisition came at a good time for the company. "It was all timing," Loggia told TSW after the Veronis Suhler announcement. "The company's doing really well."

Veronis Suhler partnered with two other private equity companies, Citigroup Private Equity and New York Life Partners, to buy the business-to-business firm.

Credit Suisse advised Advanstar on the deal, and Loggia will stay on as president and CEO.