Recent Changes in Business Strategy Contribute to Improved Performance and
Profitable Results
ATLANTA, Jan. 12 /PRNewswire-FirstCall/ -- Bull Run Corporation
(OTC Bulletin Board: BULL) today announced net income of $1.6 million for its
three months ended November 30, 2004, compared to a net loss of $(1.1) million
for the first quarter of the prior fiscal year. The Company attributes the
improved results to the discontinuation of its Affinity Events business
segment in August 2004 and improved results derived from its historically-
profitable Collegiate Marketing and Production Services segment.
Total revenues from continuing operations, derived entirely by the
Company's operating subsidiary, Host Communications, Inc., were $23.1 million
for the first quarter of the current year, an 18.4% increase over the $19.5
million in total revenues for the same period of the prior fiscal year. The
Company's Collegiate business is seasonal, and the segment's revenues and
operating profits are anticipated to be highest in the first quarter in
comparison with other fiscal quarterly periods of the year. The Collegiate
segment, which includes the Company's Printing and Publishing operations, is
expected to generate approximately 80-85% of the Company's total annual
revenues from continuing operations.
In August 2004, the Company announced that it was discontinuing its
Affinity Events business segment to focus on its historically profitable
Collegiate and Association Management segments. In December 2004, the Company
completed the sale of assets associated with the Hoop-It-Up 3-on-3 basketball
tour and the 3v3 Soccer Shootout tour, the primary components of the Company's
discontinued Affinity Events business segment.
Robert S. Prather, Jr., the Company's President and CEO commented, "Our
first quarter results were very encouraging and a welcomed change from past
performance. This clearly confirms for us that the change in business
strategy to eliminate high-risk, loss-producing ventures, along with the
substantial amount of overhead consumed by those ventures, was an appropriate
step."
"We will continue to support and build our Collegiate, Printing and
Publishing, and Association Management assets," said Thomas J. Stultz,
President and CEO of Host since August 2004. "Our new ten-year extension of
our multi-media marketing rights agreement with the University of Kentucky and
our recent three-year extension of our association management agreement with
CrossSphere, are examples of our commitment to our business partners, and our
intentions to build on and expand those relationships for the mutual benefit
of all parties." CrossSphere (formerly, the National Tour Association) is a
nearly 4,000-member global association for the packaged travel industry.
Bull Run, through its wholly-owned operating company, Host Communications,
Inc., provides comprehensive sales, marketing, multimedia, special event and
convention/hospitality services to NCAA Division I universities and
conferences and national/global associations. Bull Run's common stock is
quoted on the Pink Sheets ( http://www.pinksheets.com ), a centralized
quotation service for OTC securities, using the symbol "BULL". Additional
company information and stock quotes are available on the Company's corporate
web site at http://www.bullruncorp.com .
Forward-Looking Statements
Certain statements in this press release are "forward looking" statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements are not guaranties of future performance and actual results
may differ materially from those forecasted.
Summarized financial results for each of the three months ended November
30, 2004 and 2003 follow:
BULL RUN CORPORATION
Comparative Results of Operations
(in thousands, except per share amounts)
Three Months Ended
November 30,
2004 2003
Revenue from services rendered $23,075 $19,495
Operating costs and expenses:
Direct operating costs for services rendered 15,776 12,958
Selling, general and administrative 4,343 4,408
Amortization of acquisition intangibles 179 313
20,298 17,679
Operating income 2,777 1,816
Net change in value of derivative instrument 310 306
Debt issue cost amortization (249) (291)
Interest and other, net (1,159) (1,080)
Income from continuing operations 1,679 751
Discontinued operations (109) (1,873)
Net income (loss) 1,570 (1,122)
Preferred dividends (529) (532)
Net income (loss) available to
common stockholders $1,041 $(1,654)
Income (loss) per share available to
common stockholders, basic:
Continuing operations $0.20 $0.05
Discontinued operations (0.02) (0.43)
Net income (loss) $0.18 $(0.38)
Income (loss) per share available to
common stockholders, diluted:
Continuing operations $0.11 $0.05
Discontinued operations (0.01) (0.43)
Net income (loss) $0.10 $(0.38)
Weighted average number of common
shares outstanding:
Basic 5,713 4,340
Diluted 15,278 4,340
SOURCE Bull Run Corporation
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Related links:
http://www.bullruncorp.com
http://www.pinksheets.com
CONTACT:
Robert S. Prather, Jr., President & Chief
Executive Officer, +1-404-266-8333, or Frederick J. Erickson,
VP-Finance & Chief Financial Officer, +1-859-226-4376, both of
Bull Run Corporation; or Thomas J. Stultz, President & Chief
Executive Officer of Host Communications, Inc., +1-859-226-4356
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