Miles ahead

Miles ahead

SURVIVAL STORIES by Mark Gordon | Managing Editor

A decision to pump $1.5 million into a company with declining revenues during a deep industry downturn can test anyone's resolve. "My instinct was to build," says Roger Miles.

When Roger Miles surveyed the room at an important social event his company hosted for potential clients a few months ago, his biggest worry turned out to be suppressing an inside smile so it didn't look like he was gloating.

Miles, president of Lakewood Ranch-based Miles Media, a $30 million tourism publishing firm, knew all 35 state tourism department executives in the room, many by first name. At least 11 of the attendees were clients, and a handful of others were close to becoming clients.

The scene was quite a change from 2003, when Miles Media hosted a similar event for the same group. Back then, when Miles and his employees surveyed the room, the secret smile was replaced by a frustrating frown. Miles knew only one person in the room. None of the attendees were clients.

The image is a near-perfect picture of the survival transformation Miles Media went through, from its post 9/11 doldrums that threatened the entire business to a three-year run of increasing its market share and revenues.

The company knew its mission, but it hadn't yet zeroed in on its niche: Providing travel materials for state tourism agencies and local and regional visitor and convention bureaus, from e-mail marketing packages to Web site development to writing and publishing a variety of hotel guides.

The company's revenues, which passed $10 million in 1997, actually decreased, slightly, in the two years that followed the Sept. 11 terrorist attacks. The number was just over $18 million in 2001, but in 2002 the company reported $16.7 million in revenues and in 2003 it had $15.9 million.

"It was a difficult time," says Miles, "because we had gone from nicely profitable to 'oh my God.'"

And making things even more treacherous was the fact that accounts in the tourism publishing industry are rarely, if ever, profitable the first year. So the waiting period for any potential turnaround would be heightened. Says Miles: "It was particularly scary."

The trip from scary to survival started with a risky, multimillion-dollar expansion into new markets. Specifically, the company set about trading in a strategy of relying on the fly-to-Florida market for one that reaches into markets across the U.S that relies on both driving and flying tourists.

The risks are still paying off: The company now publishes travel guides or runs Web sites in 15 states and 10 countries. Its materials are published in 15 languages.

And Miles Media, with about 170 employees working out of a two-story complex in a Lakewood Ranch corporate park, hit $30 million in revenues in 2007, 20% growth over the $25 million in 2006 revenues. Miles is projecting about 17% growth in 2008 revenues, to $35 million.

Past revenue and employee growth, the company has cultivated something of a cult following among its clients. In Florida, the list ranges from Visit Florida, the state's tourism arm, to more than a dozen regional and local tourism-focused bureaus, from Key Largo to Kissimmee. The company's clients outside the Sunshine State include the Pennsylvania, West Virginia and New Hampshire tourism agencies, as well as the Juneau, Alaska Convention & Visitors Bureau.

"There are a lot of publishing companies out there that do print publications, but very few that combine print with online," says Jack Wert, executive director of the Greater Naples, Marco Island, Everglades Convention & Visitor Bureau, which uses Miles Media for its print publications, e-mail marketing and Web site. "They are able to hone in and excel on our projects."

And D.T. Minich, who has hired Miles Media for extensive projects in both Fort Myers and St. Petersburg, says Miles and his staff are over-the-top on their response to problems. For example, Minich says last May, when he was hired as executive director of the St. Petersburg/Clearwater Convention & Visitors Bureau after holding the same position with the Beaches of Fort Myers & Sanibel Visitor & Convention Bureau, he sought some significant changes to the St. Pete travel guide under tight deadlines.

So Miles Media sent two employees to St. Petersburg, who stayed in the area for 10 days, checking out everything from restaurants to popular hotels to obscure bed & breakfasts. "They get it," says Minich. "They understand what our challenges are and all of the entities we have to reach."

More money

But in early 2002, when the nationwide tourism industry bottomed out, Miles Media struggled to find clients where it could prove how much it gets it. At that point, Roger Miles gave serious consideration to two options. First, he though about waiting out the downturn and, after cutting back on employees and expenses, rejoining the parade when the tourism market came back.

The second choice, says Miles, was to invest in the company. That would include hiring new people, creating new products, buying new software and undergoing a sales and marketing makeover. The goal with that option would be to use the downturn as a time to make the company even better, focusing on going into new markets that would help diversify the company's customer base.

Miles ultimately chose the second option, although not without some agony "My instinct was to build," says Miles. "[But] it was a major decision because I didn't have the money to do what I wanted to do."

So he called the private equity firm he had leaned on for several cash infusions in the past, Cedar Rapids, Iowa-based More American Capital, and asked for more funding. The call was especially tough personally for Miles, because 2002 marked one of the first years since he bought the firm outright in 1990 that he had completely paid off all of his previous equity investors.

But Miles, who says he doesn't waffle once he makes up his mind on a decision, asked for another $1.5 million from More American Capital and some other investors. He got it.

Survival plan

The next step was to implement the strategy. The core of the plan was really a play off the old one, but with a modern-technology spin. Content, says Miles, was still everything. But instead of producing hotel guides and travel pamphlets for Disney World and Florida's beaches, the company began spending time on what Miles calls "reality-rich media" for all of its client's destinations.

The company set up a video production business, to make mini-films of the experience that could be downloaded to Web sites. It began compiling e-mail databases to reach repeat clients for certain destinations. It began doing business abroad. The survival plan's success has spawned new challenges at Miles Media, with a big one being hiring the right employees. Miles Media runs small offices in Pennsylvania and Orlando, to be close to certain clients, but the bulk of the employees are based in Lakewood Ranch. As the company acquires more work outside of Florida though, Miles says he will consider opening a bigger office outside of the state.

Meanwhile, having such a diverse customer base and product list only exacerbates the hiring challenge. "We operate so differently than our competitors," says Miles, that "we can't hire from the other companies because those employees are pretty limited in what they know."

The other employee-related challenge is to keep up with training, so the staff can stay ahead of industry trends. The company spends heavily on sending employees to conventions and training seminars. Says Miles: "We want to give potential visitors the information they want, when they want and how they want it."

Miles Media is currently celebrating its latest client victory: In early April, the company was chosen as the publishing and marketing services vendor for the Chicago Convention & Tourism Bureau. Even though the contract's worth several million dollars, it's not the company's largest account.

But, says Miles, it's a breakthrough in reaching large-scale clients that focus on meeting and conventions, not just leisure travel. "It's a big deal," says Miles. "It's a bellwether account for us."

Up next: Targeting the biggest meeting and convention cities, such as Atlanta and Las Vegas, for new business.

Visit Florida

Miles Media, a Lakewood Ranch-based travel publishing company, has clients in 15 states and 10 countries, providing a combination of print guides, Web site development, e-mail marketing and other products. It has more than 20 clients in Florida, including:

• The Charlotte County Visitor's Bureau;

• The Beaches of Fort Myers & Sanibel Visitor & Convention Bureau;

• The Greater Fort Lauderdale Convention & Visitor Bureau;

• The Sarasota County Convention & Visitors Bureau;

• The Panama City Beach Convention & Visitors Bureau;

• The Florida Association of RV Parks & Campgrounds;

• The Tampa Bay Sports Commission.

At a glance

Year Revenues %Growth

2005 $20.7 million

2006 $25 million 21%

2007 $30 million 20%

2008 $35 million (projected)

Source: Miles Media

REVIEW SUMMARY

Business. Miles Media, Lakewood Ranch

Industry. Tourism, publishing

Key. The company survived a deep downturn in the tourism industry by reinvesting heavily.