ATLANTA, April 11 /PRNewswire-FirstCall/ -- Bull Run Corporation
(OTC: BULL) today announced net income of $0.9 million for its six months
ended February 28, 2005, compared to a net loss of $(2.8) million for the same
six-month period of the prior fiscal year. For the three months ended
February 28, 2005, the Company's net loss was $(0.7) million, compared to a
net loss of $(1.7) million for the second quarter of the prior fiscal year.
The improvements in the current year-to-date results over the prior year
are primarily derived from the stronger performance from the Company's
historically-profitable Collegiate Marketing and Production Services business
segment, and the Company's decision to discontinue its Affinity Events
business segment in August 2004. 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 Affinity Events
segment.
Total revenues from continuing operations, derived entirely by the
Company's operating subsidiary, Host Communications, Inc., were $18.0 million
for the second quarter and $41.1 million for the six-month period ended
February 28, 2005, representing a 10.3% increase for the second quarter and a
14.7% increase year-to-date over the comparable periods of the prior fiscal
year. The Company's Collegiate business is seasonal, and the segment's
revenues and operating profits are anticipated to be higher in the first six
months in comparison with the remaining six months 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.
"As we complete the first half of our fiscal year, we are very encouraged
by the results to date," said Robert S. Prather, Jr., the Company's President
and CEO. "By remaining focused on Host's historically-profitable Collegiate,
Printing and Publishing and Association Management businesses, and by working
to enhance our key business relationships in those areas, we are realizing
some tangible results and enhancing the opportunities for growth."
Thomas J. Stultz, President and CEO of Host since August 2004, "As we near
the completion of our Collegiate year, we are very encouraged about the
results we've achieved thus far, but we understand that there is more to
accomplish. We are excited about working with our current collegiate
properties and our managed associations to develop creative revenue-generating
opportunities. We will continue to seek contract extensions with many of our
existing business partners and aggressively pursue new properties as they
become available. The ten-year extension of our multi-media marketing rights
agreement with the University of Kentucky has helped solidify our position as
a recognized leader in collegiate sports marketing. Meanwhile, we are
extremely proud of our capabilities and the steady performance of our
association management teams."
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 and six months
ended February 28, 2005 and February 29, 2004 follow:
BULL RUN CORPORATION
Comparative Results of Operations
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
February February February February
28, 2005 29, 2004 28, 2005 29, 2004
Revenue from services rendered $18,034 $16,343 $41,109 $35,838
Operating costs and expenses:
Direct operating costs for services
rendered 13,020 10,645 28,796 23,603
Selling, general and administrative 4,283 4,451 8,626 8,859
Amortization of acquisition
intangibles 180 314 359 627
17,483 15,410 37,781 33,089
Operating income 551 933 3,328 2,749
Net change in value of derivative
instrument 102 241 412 547
Debt issue cost amortization (351) (293) (600) (584)
Interest and other, net (1,091) (1,125) (2,250) (2,205)
Income (loss) from continuing
operations (789) (244) 890 507
Discontinued operations 132 (1,446) 23 (3,319)
Net income (loss) (657) (1,690) 913 (2,812)
Preferred dividends (503) (558) (1,032) (1,090)
Net loss available to common
stockholders $(1,160) $(2,248) $(119) $(3,902)
Earnings (loss) per share available to
common stockholders, basic:
Continuing operations $(0.20) $(0.18) $(0.02) $(0.13)
Discontinued operations 0.02 (0.32) 0.00 (0.75)
$(0.18) $(0.50) $(0.02) $(0.88)
Earnings (loss) per share available to
common stockholders, diluted:
Continuing operations $(0.20) $(0.18) $(0.02) $(0.13)
Discontinued operations 0.02 (0.32) 0.00 (0.75)
$(0.18) $(0.50) $(0.02) $(0.88)
Weighted average number of common
shares outstanding:
Basic 6,529 4,500 6,121 4,420
Diluted 6,529 4,500 6,121 4,420
SOURCE Bull Run Corporation
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Related links:
http://www.bullruncorp.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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