Host Communications, Bull Run's Wholly Owned Subsidiary, Reports Significantly
Improved Results
ATLANTA, Jan. 13 /PRNewswire-FirstCall/ --
Bull Run Corporation (Nasdaq: BULL) today announced significantly improved
operating results from its wholly owned operating subsidiary, Host
Communications, Inc. for the first fiscal quarter ended November 30, 2002,
compared to the same period last year. Bull Run, through Host Communications,
provides affinity, multimedia, promotional and event management services to
universities, athletic conferences, corporations and associations.
For three months ended November 30, 2002, Bull Run reported income from
operations of $6,308,000 compared to a loss from operations of $(102,000) for
the same period last year. Current year results included nonrecurring
consulting income of $5,267,000. Income generated from the Company's Host
Communications operating unit was nearly $1.7 million, doubling the operating
results achieved in the same period last year. The improvement in Host's
operating results was achieved through the restructuring and elimination of
certain contractual obligations and relationships, as well as other cost
reduction initiatives taken during the prior fiscal year. The Company
anticipates that these actions and initiatives will continue to produce
improved operating results over the remainder of the current fiscal year.
Total revenue was $31,109,000 for the three months ended November 30,
2002, compared to $35,718,000 for the same period in the prior year. The
decline in total revenue resulted primarily from the restructuring and
elimination of certain contracts, which produced unfavorable operating results
in the prior year.
The Company is subject to certain non-operating, non-cash charges and
adjustments. During the three months ended November 30, 2002, Gray issued
shares of its common stock at a per share price that was less than the
Company's carrying value per share of Gray common stock owned by the Company.
As a result, the Company incurred a non-cash loss on its investment in Gray of
$(2,339,000). The issuance of shares by Gray facilitated Gray's acquisition
of sixteen additional television stations, increasing the total number of
television stations owned by Gray to 29 stations serving 25 markets. Of
Gray's 29 stations, 23 rank #1 in local news audience and 22 rank #1 in
overall audience in their respective markets. The Company currently owns 4%
of the outstanding common stock of Gray, representing 18% of the voting power.
Other non-operating non-cash losses, net of gains, reported by the Company
totaled $(3,022,000) for the three months ended November 30, 2002, compared to
$(2,542,000) for the same period in the prior year. As a result of the non-
cash, non-operating charges reported by the Company of $(5,361,000) for the
three months ended November 30, 2002, the Company reported a net loss of
$(1,244,000) compared to a net loss of $(1,365,000) for the same period in the
prior year.
In December 2002, the Company sold its investment in Rawlings Sporting
Goods Company, Inc. for approximately $6.8 million, applying the proceeds to
its outstanding long-term debt.
Robert S. Prather, Jr., Bull Run's President and CEO, commented, "We are
very encouraged about our improved operating results. The Company had to make
some very tough decisions this past year in connection with contracts,
relationships and personnel, and it appears that we are now benefiting from
the results of those decisions."
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.
Contacts: Robert S. Prather, Jr., Bull Run's President & Chief Executive
Officer, at (404) 266-8333, or W. James Host, Chief Executive Officer of Host
Communications, Inc., at (859) 226-4202.
Summarized financial results for the quarters ended September 30, 2002 and
2001 follow:
BULL RUN CORPORATION
Comparative Results of Operations (Unaudited)
(in thousands, except per share amounts)
Three Months Ended
November 30,
2002 2001
Revenue from services rendered $31,109 $35,718
Operating costs and expenses:
Direct operating costs for
services rendered 18,066 27,229
Selling, general and
administrative 6,431 8,387
Amortization of acquisition
intangiibles 304 204
24,801 35,820
Income (loss) from
operations 6,308 (102)
Equity in earnings (losses) of
affiliated companies 579 (208)
Net change in value of certain
derivative instruments (1,674) (1,512)
Loss on issuance of shares by
affiliate (2,339)
Gain (loss) on sale of
investments and investment
valuation adjustments (977) 3,064
Debt issue cost amortization (544) (822)
Interest and other, net (2,191) (2,521)
Loss before income taxes
and extraordinary item (838) (2,101)
Income tax benefit 736
Loss before extraordinary
item (838) (1,365)
Proportionate share of
affiliate's extraordinary
loss (406)
Net loss (1,244) (1,365)
Preferred dividends (259) (67)
Net loss available to
common stockholders $(1,503) $(1,432)
Loss per share available to
common stockholders,
basic and diluted:
Loss before extraordinary
item $(0.03) $(0.04)
Extraordinary loss (0.01)
Net loss available to common
stockholders $(0.04) $(0.04)
Weighted average number of
shares outstanding,
basic and diluted 38,312 36,024
SOURCE Bull Run Corporation
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Related links:
http://www.bullruncorp.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/232438.html
CONTACT:
Robert S. Prather, Jr., President & Chief
Executive Officer of Bull Run Corporation, +1-404-266-8333, or W.
James Host, Chief Executive Officer of Host Communications, Inc.,
+1-859-226-4202
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