ATLANTA, Feb. 15 /PRNewswire/ -- Bull Run Corporation (Nasdaq: BULL) today
announced that total revenue from continuing operations for the second quarter
ended December 31, 2000 was $36,880,000 compared to $6,720,000 for the same
period last year. Total revenue for the second quarter ended December 31
includes $36,874,000 in 2000 and $6,091,000 in 1999 attributable to Host
Communications, Inc., Bull Run's wholly owned subsidiary, acquired December
17, 1999. Operating cash flow (defined as operating income plus depreciation
and amortization charged to operations) for the three months ended December 31
was $2,084,000 in 2000 and $(91,000) in 1999.
Total revenue from continuing operations for the six months ended December
31, 2000 was $61,124,000 compared to $7,390,000 for the same period last year,
including $61,113,000 in 2000 and $6,091,000 in 1999 attributable to Host
Communications. Operating cash flow for the six months ended December 31 was
$1,954,000 in 2000 and $179,000 in 1999.
The Company's business is seasonal, since much of the Company's revenue is
related to events, promotions and services rendered during the collegiate
football and basketball seasons. As a result, the six months ending December
31 provides less than a proportionate amount of the Company's anticipated
annual revenue and operating profit.
The Company recognized income of $3,160,000 in the six months ended
December 31, 2000 from the cumulative effect of adopting a new accounting
standard for accounting for derivative instruments and hedging activities.
The change in value of derivative instruments is reported as income or expense
in 2000, and amounted to $6,050,000 and $5,927,000 for the quarter and six
months ended December 31, 2000, respectively.
For the quarter and six months ended December 31, 2000, the Company
reported a noncash pretax charge of $6,180,000 in order to reduce the book
value of its investment in Total Sports, Inc. to the quoted market value of
Quokka Sports, Inc. common stock received by the Company upon the acquisition
of Total Sports by Quokka Sports in November 2000.
Primarily as a result of the investment valuation charge, goodwill
amortization charges and the Company's seasonal operating results, net of the
increase in value of derivative instruments (some of which reported as a
cumulative effect of an accounting change), the Company reported a net loss of
$2,090,000 for the quarter and $3,271,000 for the six months ended December
31, 2000, compared to income from continuing operations of $96,000 for the
quarter and $119,000 for the six months, and net income of $40,000 for the
quarter and $523,000 for the six months ended December 31, 1999.
Robert S. Prather, Jr., Bull Run's President and CEO, commented, "We
believe that our operating business is off to a good start this year. Host's
business is seasonal, so our first quarter is typically slow, followed by a
better second quarter with the college football season in full swing and the
start of the college basketball season, followed by a stronger third quarter.
Although we are disappointed that we have had to take a charge to write down
the book value of our investment in Total Sports this quarter, it was a
noncash charge."
Mr. Prather, continued, "We are also subject to current accounting rules
that require us, and certain of our investees, to amortize acquisition
intangibles such as goodwill. These noncash amortization charges negatively
impacted our net results this year by approximately $1.4 million for the
quarter and $3.0 million year-to-date, of which, approximately $1.0 million
for the quarter and $2.2 million for the six months was charged to operating
income."
Bull Run, through Host, provides affinity, multimedia, promotional and
event management services to universities, high schools, athletics
conferences, associations and corporations. Bull Run also has significant
investments in Gray Communications Systems, Inc., an owner and operator of 13
television stations and four newspapers; Sarkes Tarzian, Inc., an owner and
operator of two television stations and four radio stations; and Rawlings
Sporting Goods Company, Inc., a leading supplier of team sports equipment in
North America.
Contacts: 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. Additional information about the
Company is available on its web site at http://www.bullruncorp.com.
Summarized financial results for the quarter and six months ended December
31, 2000 and 1999 follow:
BULL RUN CORPORATION
Comparative Results of Operations (Unaudited)
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
December 31, December 31,
2000 1999 2000 1999
Revenue from services
rendered $36,880 $6,720 $61,124 $ 7,390
Operating costs and expenses:
Direct operating costs
for services rendered 25,879 5,036 42,070 5,036
Selling, general and
administrative 9,304 1,872 17,885 2,272
Amortization of acquisition
intangibles 1,020 187 2,157 187
36,203 7,095 62,112 7,495
Operating income (loss) 677 (375) (988) (105)
Equity in earnings(losses) of
affiliated companies (489) (763) (1,473) (134)
Gain on issuance of shares
by affiliate -- 2,492 -- 2,492
Reduction in valuation of
investment in affiliate (6,180) -- (6,180) --
Net change in value of
certain derivative
instruments 6,050 5,927
Debt issue cost amortization (440) (107) (1,254) (114)
Interest and other, net (2,277) (1,146) (4,789) (2,133)
Income (loss) from continuing
operations before income
taxes and cumulative
effect adjustment (2,659) 101 (8,757) 6
Income tax benefit(provision) 569 (5) 2,326 113
Income (loss) from continuing
operations before cumulative
effect adjustment (2,090) 96 (6,431) 119
Cumulative effect of
accounting change,
net of tax -- -- 3,160 --
Income (loss) from
continuing operations (2,090) 96 (3,271) 119
Income (loss) from
discontinued operations,
net of tax -- (56) -- 404
Net income (loss) $(2,090) $40 $(3,271) $523
Earnings (loss) per share -
Basic and Diluted:
Income (loss) from continuing
operations before cumulative
effect adjustment $(0.06) $ 0.00 $(0.18) $0.00
Cumulative effect of
accounting change 0.00 0.00 0.09 0.00
Discontinued operations 0.00 0.00 0.00 0.02
Net income (loss) $(0.06) $ 0.00 $(0.09) $0.02
Weighted average shares outstanding:
Basic 35,085 24,080 35,085 23,274
Diluted 35,085 25,321 35,085 24,316
SOURCE Bull Run Corporation
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Related links:
http://www.bullruncorp.com
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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