Host Communications, Bull Run's Wholly Owned Subsidiary,
Continues Improved Results
ATLANTA, April 15 /PRNewswire-FirstCall/ --
Bull Run Corporation (Nasdaq: BULL) today announced that its wholly owned
operating subsidiary, Host Communications, Inc., continued to improve its
operating results in the second fiscal quarter ended February 28, 2003
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 the six months ended February 28, 2003, Bull Run reported income from
operations of $4,548,000 compared to a loss from operations of $(3,082,000)
for the same period last year. The current year-to-date results include
nonrecurring consulting income of $5,267,000. For three months ended
February 28, 2003, Bull Run reduced its loss from operations to $(1,760,000)
from $(2,980,000) for the same period last year. The second fiscal quarter
includes a proportionately low amount of revenue due to the seasonality of the
Company's largest business segments. Operating income generated by the
Company's Host Communications operating unit improved nearly $1.1 million for
the quarter ended February 28, 2003 compared to the same period last year, and
more than $1.9 million for the six months ended February 28, 2003 compared to
the prior 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 $17,626,000 and $48,735,000 for the three months and six
months ended February 28, 2003, respectively, compared to $24,029,000 and
$59,747,000 for the same respective periods in the prior year. Total revenue
has declined in the current year primarily as a result of the restructure 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 current fiscal year, 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, totaled $(1,165,000)
and $(4,187,000) for the three months and six months ended February 28, 2003,
respectively, compared to $(5,990,000) and $(8,532,000) for the same
respective periods in the prior year. As a result of non-cash, non-operating
charges reported by the Company of $(1,165,000) and $(6,626,000) for the three
months and six months ended February 28, 2003, respectively, the Company
reported a net loss of $(5,042,000) and $(6,286,000) for the three months and
six months ended February 28, 2003, respectively, compared to a net loss of
$(8,003,000) and $(9,368,000) for the same respective periods in the prior
year.
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 quarter and six months ended
February 28, 2003 and 2002 follow:
BULL RUN CORPORATION
Comparative Results of Operations (Unaudited)
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
February 28, February 28,
2003 2002 2003 2002
Revenue from services rendered $ 17,626 $ 24,029 $ 48,735 $ 59,747
Operating costs and expenses:
Direct operating costs for
services rendered 12,779 19,321 30,845 46,550
Selling, general and
administrative 6,303 7,235 12,734 15,622
Amortization of acquisition
intangibles 304 453 608 657
19,386 27,009 44,187 62,829
Income (loss) from operations (1,760) (2,980) 4,548 (3,082)
Equity in earnings (losses) of
affiliated companies (366) (676) 213 (884)
Net change in value of certain
derivative instruments (189) (1,347) (1,863) (2,859)
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 (610) (720) (1,154) (1,542)
Interest and other, net (2,117) (1,968) (4,308) (4,489)
Loss before income taxes,
extraordinary item and
cumulative effect adjustment (5,042) (7,691) (5,880) (9,792)
Income tax benefit 2,935 3,671
Loss before extraordinary item
and cumulative effect adjustment (5,042) (4,756) (5,880) (6,121)
Proportionate share of affiliate's
extraordinary loss (627) (406) (627)
Proportionate share of affiliate's
cumulative effect of accounting change (2,620) (2,620)
Net loss (5,042) (8,003) (6,286) (9,368)
Preferred dividends (281) (121) (540) (188)
Net loss available to common
stockholders $ (5,323) $ (8,124) $ (6,826) $ (9,556)
Loss per share available to common
stockholders, basic and diluted:
Loss before extraordinary item $ (0.14) $ (0.13) $ (0.17) $ (0.17)
Extraordinary loss (0.02) (0.01) (0.02)
Cumulative effect of accounting
change (0.07) (0.07)
Net loss available to common
stockholders $ (0.14) $ (0.22) $ (0.18) $ (0.26)
Weighted average number of shares
outstanding, basic and diluted 38,671 36,444 38,491 36,234
SOURCE Bull Run Corporation
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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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