Penton Media Reports Record First-Quarter Revenues; Adjusted EBITDA Reaches $20 Million.Business Editors CLEVELAND--(BUSINESS WIRE)--April 26, 2001 Penton Media Penton Media, Inc. (OTC: PTON.OB), founded in 1892, is a diversified business-to-business media company. Penton Media is a mass media corporation that publishes and produces over 40 magazines, 80 trade shows, and 47 web sites. , Inc. (NYSE NYSE See: New York Stock Exchange :PME PME Petites et Moyennes Entreprises PME Professional Military Education PME Pequenas e Médias Empresas (Portugal) PME Petite et Moyenne Entreprise PME Psychology of Mathematics Education PME Pi Mu Epsilon ), a leading, global business-to-business  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. media company with publishing, trade show and online media products serving 12 industry sectors, announced today that its reported first-quarter results were in line with the Company's guidance, with revenues up 48.6% to $112.7 million, and adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become up 80.4% to $19.9 million compared with first-quarter 2000. First-quarter 2001 results were positively impacted by a shift in timing of two major trade shows: Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the World Spring and eCRM. Both shows were held in the second quarter of 2000, but moved to the first quarter this year. Adjusting first-quarter 2000 results to include these shows, quarterly revenues in 2001 increased by $11.9 million, or 11.8%, and adjusted EBITDA declined by $10.5 million, or 34.6%. "Although our reported results reached the high end of our guidance ranges, the difficult technology market continues to negatively impact some of our key media properties, such as Internet World Spring and Internet World magazine," said Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs L. Kemp n. 1. Coarse, rough hair in wool or fur, injuring its quality. , chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We are experiencing pressure in parts of our publishing portfolio and on our domestic, horizontal horizontal /hor·i·zon·tal/ (hor?i-zon´t'l) 1. parallel to the plane of the horizon. 2. occupying or confined to a single level in a hierarchy. horizontal parallel to the plane of the horizon. products in the Internet sector. However, the diversity of our products and markets and our expanding portfolio in global markets have provided resilience resilience (r  ·zilˑ·yens),n for us in this challenging economy." Kemp added, "Despite the difficult economic environment, we are moving forward with our plans to build our business for long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth. We are continuing to invest in new products and to identify and execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution acquisitions that strengthen our market positions. At the same time, we are closely managing our costs to protect near-term near-term adj. Of, for, or involving a short period of time in the near future. profits for the business." On a comparable basis, excluding discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. and nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. items, Penton's first-quarter net income grew to $1.2 million, or $0.04 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with $0.3 million, or $0.01 per diluted share, in the first quarter of 2000. Comparable after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. cash flow grew 61.4% to $12.8 million, up from $7.9 million in the 2000 first quarter, and after-tax cash flow per share increased to $0.40 versus $0.25 in the same year-ago period. Reported net loss for the first quarter was $1.3 million, or $0.04 per diluted share, a decline compared with reported net income for the same 2000 quarter of $66.3 million, or $2.09 per diluted share. In addition to the timing of the two trade shows, reported net income and diluted EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. reflect a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta gain of $110.2 million ($2.08 per diluted share after tax) on the sale of investments that Penton Penton was a brand of off-road use motorcycle introduced in 1968 by John Penton, a noted enduro rider on the dirt bike competition circuit. The first Penton motorcycles were modified small bore European bikes based on the Austrian KTM, with a Sachs engine, but with improved recognized in first quarter 2000, and a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. of about $5.6 million ($0.08 per diluted share after tax) related to the discontinuation dis·con·tin·u·a·tion n. A cessation; a discontinuance. Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent) discontinuance of certain internally funded online media projects, which Penton recognized in first quarter 2001.
Penton Media, Inc. - First Quarter 2001
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($ in millions, except
per share data) Reported Comparable(1)
----------------------------------------------------------------------
2001 2000 % Change 2001 2000 % Change
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Revenue $112.7 $75.8 48.6% $112.7 $75.8 48.6%
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Adjusted EBITDA(2) $19.9 $11.0 80.4% $19.9 $11.0 80.4%
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Net Income (loss) $(1.3) $66.3 n/a $1.2 $ 0.3 367.8%
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EPS - Diluted $(0.04) $2.09 n/a $0.04 $0.01 300.0%
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After-tax Cash Flow
(ATCF)(3) $10.3 $74.1 (86.1)% $12.8 $ 7.9 61.4%
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ATCF/Share
- Diluted $0.32 $2.33 (86.3)% $0.40 $0.25 60.0%
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(1) Excluding discontinued operations and nonrecurring items
(2) Adjusted EBITDA is defined as net income before interest,
taxes, depreciation and amortization, and nonrecurring items.
(3) After-tax cash flow is defined as income from continuing
operations plus depreciation and amortization.
FIRST-QUARTER OPERATING HIGHLIGHTS Revenues for Trade Shows and Conferences grew 132.6% to $52.3 million. However, adjusted for the timing variances of the Internet World Spring and eCRM trade shows, revenues increased $4.8 million, or 10.2%. Revenues, adjusted for the timing variances, increased as a result of several successful launches, including Internet World Wireless East and ASPCON Spring in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and m-CommerceWorld in London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. ; growth of existing events, including eCRM; and the added results of acquired events. The revenue gains were partially offset by lower revenue for Internet World Spring. Adjusted EBITDA for Trade Shows and Conferences increased 183.0% to $25.4 million, generating an adjusted EBITDA margin of 48.5%. However, adjusted EBITDA for events declined by $3.0 million, or 10.6%, when adjusted for the trade show timing variances. Increases on existing events as well as results from show launches in the quarter were offset by a year-over-year decline on Internet World Spring and the recognition of period costs associated with acquired trade shows. Publishing revenues grew 8.0% to $57.2 million, compared with $52.9 million in the first quarter last year. The increase primarily reflects the addition of a full quarter of results from Duke Communications, which was acquired in September September: see month. 2000. The increase was partially offset by a sharp revenue fall in Internet World magazine and the timing variance The discrepancy between what a party to a lawsuit alleges will be proved in pleadings and what the party actually proves at trial. In Zoning law, an official permit to use property in a manner that departs from the way in which other property in the same locality related to a major directory that is published every other year. Adjusted EBITDA for Publishing decreased $4.3 million to $6.8 million, compared with $11.0 million in 2000. Results were heavily impacted by Internet World's decline; the timing variance of the major directory; and investments in magazine launches. Online media revenues in the first quarter of 2001 were $3.3 million compared with $0.4 million in the same 2000 period. The increase was due primarily to the addition of Duke's Web business. Online Media adjusted EBITDA losses in the quarter were $1.0 million compared with a loss of $0.8 million in the same year-ago period. STRATEGIC REVIEW AND BUSINESS OUTLOOK Penton completed six acquisitions during the quarter, representing a total investment of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $9.3 million. The acquisitions strengthened Penton's existing positions in the Internet/broadband, information technology, mechanical systems/construction and natural products markets. Anticipated performance of the acquisitions is included in the Company's existing guidance. The Company is providing second-quarter guidance of revenues in the range of $105 million to $115 million; adjusted EBITDA between $15 million and $20 million; and comparable EPS between a loss of $0.05 and income of $0.02. "Business conditions continue to be difficult, and forward visibility on advertising remains limited," said Kemp. He said that the Company is reconfirming its updated guidance for the full year 2001, although it expects results to be in the low end of the ranges due to challenging market conditions. Full-year guidance ranges include: revenues between $470 million and $500 million; adjusted EBITDA between $90 million and $105 million; comparable EPS between $0.25 and $0.50; and comparable after-tax cash flow per share between $1.65 and $1.90. "We are taking aggressive measures both to manage costs and drive new revenues. Overall, we expect to produce very good growth over 2000, and we are confident Penton will emerge from this struggling economy an even stronger, more highly competitive company." CONFERENCE CALL ON THE WEB Audio of Penton's conference call reviewing the Company's first-quarter 2001 results will be broadcast live over the Internet at 10 a.m. Eastern Time on Thursday Thursday: see week. , April 26, 2001. The live call will be accessible via the Investors section of Penton's Web site, www.penton.com, and the call will be archived on the site. A taped replay of the conference call can be accessed by dialing 1-703-925-2533 and referencing access code number 5095594, from 1:00 p.m. Eastern Time, Thursday, April 26, 2001, until 6:00 p.m. Eastern Time, Thursday, May 3, 2001. ABOUT PENTON MEDIA Penton Media is a leading, global business-to-business media company that produces 62 market-focused magazines, 185 trade shows and conferences, and 139 Web sites. Penton's integrated media portfolio serves the following industries: Internet/broadband; information technology; electronics; natural products; food/retail; manufacturing; design/engineering; supply chain; aviation; government/compliance; mechanical systems/construction; and leisure/hospitality. The Company generated revenues of $404.6 million in 2000. The statements contained in the above Business Outlook and other statements in this document that are not historical in nature are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties. Although management of Penton believes that its expectations are based upon reasonable assumptions within the bounds of its knowledge of Penton's business, there can be no assurance that the Company's financial goals will be realized. Numerous factors may affect the Company's actual results and may cause results to differ materially from those expressed in forward-looking statements made by or on behalf of the Company. Factors that could cause actual results to differ materially include: fluctuations in advertising revenue with general economic cycles; management's ability to identify, finance, complete and integrate acquisitions; the performance of Internet/Broadband trade shows and conferences; the seasonality of revenue from publishing and trade shows and conferences; the success of new products; increases in paper and postage POSTAGE. The money charged by law for carrying letters, packets and documents by mail. By act of congress of March 3, 1851, Minot's Statute at Large, U. S. 587, it is enacted as follows: 2.-Sec. 1. cost; the infringement The encroachment, breach, or violation of a right, law, regulation, or contract. The term is most frequently used in reference to the invasion of rights secured by Copyright, patent, or trademark. or invalidation in·val·i·date tr.v. in·val·i·dat·ed, in·val·i·dat·ing, in·val·i·dates To make invalid; nullify. in·val of Penton's intellectual property rights; and other such factors listed from time to time in Penton's reports filed with the Securities and Exchange Commission. Penton does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
PENTON MEDIA, INC.
CONSOLIDATED STATEMENT OF INCOME
(Unaudited; Dollars and shares in thousands except per share data)
Three Months Ended
March 31,
2001 2000
---- ----
REVENUES $ 112,693 $ 75,825
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OPERATING EXPENSES:
Editorial, production and circulation 40,841 30,309
Selling, general and administrative 51,944 34,479
Restructuring charge 5,567 -
Depreciation and amortization 11,579 7,653
----------- ----------
109,931 72,441
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OPERATING INCOME 2,762 3,384
----------- ----------
OTHER EXPENSE (INCOME):
Interest expense, net of interest earned 6,001 2,735
Gain on sale of investments - (110,210)
Miscellaneous, net (51) 20
----------- ----------
5,950 (107,455)
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INCOME (LOSS) FROM CONTINUING
OPERATIONS BEFORE INCOME TAXES (3,188) 110,839
PROVISION (BENEFIT) FOR INCOME TAXES (1,910) 44,416
----------- ----------
INCOME (LOSS) FROM CONTINUING OPERATION (1,278) 66,423
LOSS FROM OPERATIONS OF
DISCONTINUED BUSINESSES, NET - (85)
NET INCOME (LOSS) $ (1,278) $ 66,338
=========== ==========
ADJUSTED EBITDA $ 19,908 $ 11,037
=========== ==========
EARNINGS PER COMMON SHARE - basic
Income from continuing operations $ (0.04) $ 2.10
Discontinued operations - -
----------- ----------
Net income (loss) $ (0.04) $ 2.10
=========== ==========
EARNINGS PER COMMON SHARE - diluted
Income from continuing operations $ (0.04) $ 2.09
Discontinued operations - -
----------- ----------
Net income (loss) $ (0.04) $ 2.09
=========== ==========
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic 31,876 31,577
=========== ==========
Diluted 31,876 31,789
=========== ==========
PENTON MEDIA, INC.
SUPPLEMENTAL INFORMATION
REVENUE AND ADJUSTED EBITDA
(Unaudited; all amounts in thousands)
Three Months Ended
March 31,
2001 2000
---- ----
Revenues (a)
Publishing & other $ 57,169 $ 52,924
Trade shows & conferences 52,264 22,470
Online 3,260 431
------------ ------------
Total Revenues $ 112,693 $ 75,825
============ ============
Adjusted EBITDA (a)
Publishing & other $ 6,769 $ 11,044
Trade shows & conferences 25,360 8,960
Online (987) (785)
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Subtotal 31,142 19,219
General & Administrative (11,234) (8,182)
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Total Adjusted EBITDA $ 19,908 $ 11,037
============ ============
(a) Certain reclassifications have been made to the supplemental
information to conform to the current presentation.
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