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ADVANSTAR RELEASES 2004 RESULTS
New York, NYMarch 10, 2005Advanstar Communications Inc., a leading worldwide provider of B-to-B marketing and business information products and services, today reported its operating results for the year ended December 31, 2004.
Revenue from continuing operations for 2004 increased 23.2% to $378.1 million from $306.8 million in 2003. Operating income from continuing operations increased 75.5% to $42.4 million from $24.2 million in 2003. Loss from continuing operations for 2004 was reduced 40.0% to $26.9 million from $44.9 million in 2003. Net loss for 2004 was $51.2 million compared to a net loss of $49.4 million in 2003. The net loss for 2004 includes a $9.7 million loss from discontinued operations related to the sale of Advanstar's art trade show and publications business, joint venture in France and German trade show business. Additionally, interest expense increased $12.3 million in 2004 as a result of the Company's debt refinancing and financings related to the acquisition of certain healthcare properties from the Thomson Corporation in 2003. Results for 2004 also include the financial results of certain healthcare industry publications and conferences acquired from the Thomson Corporation and its subsidiaries (the "Thomson Healthcare Properties") in October 2003.
Advanstar generated cash from operations of $18.3 million in 2004 compared to $45.8 million in 2003. A change in the timing of payment processing on accounts payable between 2003 and 2004 reduced cash from operations by approximately $15.0 million. The balance of the decline is principally due to the sale of Advanstar's art industry trade show and publications in the first quarter of 2004 and a change in the timing of cash collections in the fourth quarter related to trade shows to be held in the first five months of the year.
EBITDA from continuing operations for 2004 increased 16.0% to $91.5 million from EBITDA from continuing operations of $78.9 million in 2003.
Joe Loggia, President and CEO of Advanstar said, "We are encouraged by our financial results for the year which were in line with our objectives. We successfully executed the early stages of our strategic plan designed to solidly position Advanstar to capitalize on future growth opportunities.
"Within our key markets, our MAGIC events continued to perform strongly in the past year and once again exceeded our expectations. We increased revenue, square footage and attendance, as we capitalized on our single venue strategy and introduced new trend areas to better meet the needs of attendees. Our Powersports group launched several new initiatives aimed at both strengthening our core business and expanding our position into new adjacent markets. Our initial results were better than expected and should enable us to launch additional events in 2005 and 2006. We have continued the expansion of our presence in the Life Science markets through the addition of the IVT portfolio of conferences and publications and the introduction of a stand alone Continuing Medical Education group. Additionally, we have made great progress in strengthening the management team across Advanstar."
Mr. Loggia concluded, "Looking forward, our plan is to continue to focus on these key industry groups where we can leverage our market positions, provide innovative quality products, and expand our customers' opportunities to communicate with their markets."
Segment Operating Summary
Trade Shows and Conferences:
In 2004, revenue from trade shows and conferences increased 6.6% to $151.5 million from $142.1 million in 2003. The increase reflects strong results from Advanstar's MAGIC, Powersports, License and Home Entertainment events. Revenues from trade shows and conferences also benefited from the veterinary conference acquired in October 2003 as part of the Thomson Healthcare Properties
The following information was filed by Advanstar Communications Inc on Thursday, March 10, 2005 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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