Viad Earnings Down, GES Revenue Up

GES Exposition Services' parent company, Viad, saw its earnings drop 35 percent in the second quarter, from $28.3 million in 2006 to $18.5 million this year. The company attributed the reduction in earnings to warranties from the sale of a business several years ago that were credited last year.

However, Viad's second-quarter revenue was $276 million, compared with $237 million in 2006. Income before other items was $18.2 million, compared with $15.4 million last year. Paul B. Dykstra, Viad president and CEO, wasn't concerned by the downturn in earnings growth.

"Overall, we had a very good second quarter," he said. "Income before other items per share increased 22.5 percent as compared to the 2006 quarter, reflecting positive show rotation in Exhibitgroup, the acquisition of Melville and solid performance at all our operating companies."

GES' revenue was also up to $193 million from $169 million in the same period in 2006. Second-quarter segment operating income was $22 million, up from $18.4 million in 2006.

Dykstra said, "GES continues to produce strong results in 2007. Base same-show growth was 12.3 percent during the second quarter. We are realizing very good results from Melville, where we are in the process of implementing the growth initiatives that were identified during our diligence process."