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FOR IMMEDIATE RELEASE
ADVANSTAR RELEASES THIRD QUARTER 2005 RESULTS
New York, NY November 10, 2005 - Advanstar Communications Inc. (Advanstar), a leading worldwide media company providing integrated marketing solutions, today reported operating results for the third quarter and nine months ended September 30, 2005.
Third Quarter Overview
Advanstars results for the third quarter of 2005 reflect the implementation of several growth initiatives and the continued implementation of a corporate restructuring begun earlier in the year.
The corporate restructuring included a workforce and leased office space reduction, resulting in a pre-tax charge of $1.0 million in the third quarter. The Company expects to incur approximately $1.2 million in additional charges over the next six months as the Company continues to execute its restructuring plan. The estimated annualized cost savings of the Companys restructuring is approximately $9.0 million when fully completed.
In August 2005 the Company completed the acquisitions of Project Tradeshow (Project) and Pool Tradeshow (Pool). The acquisitions of Project and Pool were completed to expand Advanstars presence in the contemporary and boutique fashion markets. These events were operated in coordination with the Companys fall MAGIC event during the quarter.
Joe Loggia, President and CEO of Advanstar said, Our performance in the third quarter demonstrates the initial results of successfully executing our plan to strengthen the Company and transform our business. First, we improved the operating results of many of our key properties. Second, we maintained our focus on investing in our properties and new initiatives to accelerate our growth and are already seeing benefits. In particular, our fall MAGIC event outperformed our expectations due to the success of our growth initiatives, which included new trend areas, pavilions and an expanded Sourcing Zone. And, finally, we made substantial progress in our corporate restructuring and we are operating with significantly increased efficiency. We will continue to focus on these key components of our business strategy through the remainder of the year.
Third Quarter Results
Revenue from continuing operations in the third quarter of 2005 increased 9.9% to $85.7 million from $78.0 million in the third quarter of 2004. Revenue from continuing operations in the first nine months of 2005 increased 5.7% to $232.3 million from $219.7 million in the same period last year.
Operating income from continuing operations in the third quarter of 2005 increased 35.3% to $21.8 million from $16.1 million in the third quarter of 2004. The quarterly results included a restructuring charge of $0.4 million related to office closures. The Company also recorded a third quarter charge of $0.6 million for workforce reductions.
Operating income from continuing operations in the first nine months of 2005 increased 12.1% to $40.1 million from $35.7 million in 2004. Operating income includes restructuring charges of $1.2 million for vacated leased office space and $1.8 million for severance costs.
The following information was filed by Advanstar Communications Inc on Thursday, November 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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