ATLANTA, Feb. 14 /PRNewswire/ -- Bull Run Corporation (Nasdaq: BULL)
reported net income of $40,000 for the second quarter ended December 31, 1999,
compared to a net loss of $(398,000) for the same period last year. Total
revenue for the quarter ended December 31, 1999 was $13,241,000 compared to
$8,473,000 for the same period last year. Current year revenue includes
$6,092,000 attributable to the businesses of Host Communications, Inc. (Host)
and Universal Sports America, Inc. (USA) for the period December 17, 1999
(date of acquisition) through December 31, 1999. Prior to December 17, 1999,
Bull Run accounted for its 32.5% share of Host as an equity investment, and
therefore Host's and USA's results were not consolidated with Bull Run's
results until December 17, 1999.
For the six months ended December 31, 1999, Bull Run reported net income
of $523,000, compared to $3,642,000 for the same period last year. Total
revenue was $22,279,000 for the six months ended December 31, 1999, including
$6,092,000 associated with Host and USA, compared to $16,657,000 for the same
period last year. Current year net income for the three and six months ended
December 31, 1999 was favorably impacted approximately $1,600,000 by a
$2,492,000 pretax gain on the issuance by Gray Communications Systems, Inc.
(NYSE: GCS GCS.B) of its class B common stock in connection with Gray's
acquisition of three television stations in October 1999. Gray's issuance of
shares diluted Bull Run's investment in Gray from 16.9% to 13.2%, and its
common equity voting power in Gray from 27.5% to 26.2%. Current year net
income for the six months ended December 31, 1999 was also favorably impacted
by approximately $1,250,000 as a result of Bull Run's proportionate share of a
gain recognized by USA on the sale of its investment in broadcast.com, inc.
Prior year net income for the six months ended December 31, 1998 was favorably
impacted by approximately $4,000,000 recognized as a result of Bull Run's
proportionate share of a gain recognized by Gray on its sale of a television
station in July 1998.
Robert S. Prather, Jr., Bull Run's President and CEO, commented, "Our
second quarter was one of transition, as we completed the acquisition of Host
Communications and Universal Sports America on December 17th. Therefore, we
only consolidated roughly 14 days of Host and USA's results in our results for
the quarter. We are very pleased thus far with the integration of those
businesses into Bull Run, as we have been able to identify several
opportunities to lower operating costs and overhead of the acquired businesses
by combining them under Bull Run, and believe that these savings will have a
very favorable impact on our future operating results."
Mr. Prather continued, "We are also very pleased with the enormous
opportunities that the new subsidiaries provide. Host continues to grow and
strengthen its business, most recently extending its contract with the
University of Kentucky and adding Pennzoil as an NCAA Corporate Partner. Our
acquisition of Host also affords us the opportunity to increase our Internet-
related investments. Host's investment in Total Sports, Inc. increases our
total position in the sports content Internet company to 11.4%, and we also
add Host's 29% investment (fully-diluted) in iHigh.com, Inc., a recently
formed company developing an Internet network of websites devoted to high
school sports and activities."
Bull Run, through Host and USA, provides specialized marketing and
management services to corporate clients focusing primarily on sports-related
affinity groups. Host and USA also provide professional marketing and other
management services to the National Collegiate Athletic Association (NCAA),
collegiate and high school athletic institutions, and other groups and
associations through the sale of "official sponsorship" rights, print and
broadcast advertising, and production of electronic and print media through
broadcasting, printing, Internet and publishing divisions. Through USA's
Streetball Partners division, Bull Run provides sports marketing and event
management services to national and international corporate sponsors and
grassroots sports participants through events such as the "Hoop-it-Up" 3-on-3
basketball tournaments.
In addition to Host and USA, Datasouth Computer Corporation, a
manufacturer of computer printers, also operates as a wholly owned subsidiary
of Bull Run. In addition to Gray, Total Sports and iHigh.com, Bull Run also
has significant investments in Rawlings Sporting Goods Company, Inc.
(Nasdaq: RAWL), a leading supplier of team sports equipment in North America
and Sarkes Tarzian, Inc., an owner and operator of two television stations and
four radio stations.
Bull Run will be hosting a conference call to discuss its second quarter
and year-to-date operating results on Tuesday, February 15, 2000. The call
will begin at 2:30 PM EST, and it will be available for replay via telephone
until February 22, 2000. The live dial-in number is (888) 273-9887. The
taped replay will be available at (800) 475-6701 and the access code for the
taped replay is 502685.
For additional information, contact Robert S. Prather, Jr., Bull Run's
President & Chief Executive Officer, at (404) 266-8333, or Frederick J.
Erickson, VP-Finance and Chief Financial Officer, at (704) 602-3107.
BULL RUN CORPORATION
Comparative Results of Operations
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
December 31, December 31,
1999 1998 1999 1998
Revenue from services rendered $6,720 $2 $7,390 $966
Revenue from computer
printer operations 6,521 8,471 14,889 15,691
Total revenue 13,241 8,473 22,279 16,657
Operating costs and expenses:
Direct operating costs for
services rendered 5,036 5,036
Cost of revenue from
printer operations 4,751 6,095 10,617 11,467
Selling, general and
administrative 3,063 1,498 4,550 2,895
Research and development 484 561 969 1,169
13,334 8,154 21,172 15,531
Operating income (loss) before
goodwill amortization (93) 319 1,107 1,126
Goodwill amortization 325 123 461 245
Operating income (loss) (418) 196 646 881
Equity in earnings (losses)
of affiliates (763) 54 (134) 6,880
Gain on issuance of
shares by affiliate 2,492 2,492
Interest and dividends, net (1,429) (832) (2,519) (1,623)
Debt issue cost amortization (107) (8) (114) (16)
Other income (expense) 283 (120) 387 (120)
Income (loss) before
income taxes 58 (710) 758 6,002
Income tax benefit (provision) (18) 312 (235) (2,360)
Net income (loss) $40 $(398) $523 $3,642
Earnings (loss) per
share - Basic $0.00 $(0.02) $0.02 $0.16
Weighted avg. shares
outstanding - Basic 24,080 22,276 23,273 22,280
Earnings (loss) per
share - Diluted $0.00 $(0.02) $0.02 $0.16
Weighted avg. shares
outstanding - Diluted 25,321 22,276 24,316 23,182
Comparative Balance Sheets
(in thousands)
December 31, June 30,
1999 1999
ASSETS
Current assets:
Cash and cash equivalents $2,938 $323
Accounts and notes receivable 51,202 3,927
Inventories 6,656 5,505
Prepaid costs and expenses 16,008 160
76,804 9,915
Property and equipment, net 9,431 2,620
Investment in affiliated companies 85,098 85,311
Goodwill 96,609 7,417
Other assets 2,275 835
$270,217 $106,098
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and current portion of
long-term debt $10,000 $67,361
Accounts payable and
accrued expenses 32,208 4,149
Deferred revenue 16,850
Deferred income taxes 1,220
60,278 71,510
Long-term debt 119,494
Deferred income taxes and
other liabilities 9,083 6,594
Stockholders' equity 81,362 27,994
$270,217 $106,098
SOURCE Bull Run Corporation
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Company News On-Call:
http://www.prnewswire.com/comp/232438.html or fax,
800-758-5804, ext. 232438
CONTACT:
Robert S. Prather, Jr., President & Chief
Executive Officer, 404-266-8333, or Frederick J. Erickson,
VP-Finance and Chief Financial Officer, 704-602-3107, both of
Bull Run Corporation
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