ATLANTA, May 15 /PRNewswire/ -- Bull Run Corporation (Nasdaq: BULL) today
announced that total revenue for the quarter ended March 31, 2000 was
$44,899,000 compared to $7,728,000 for the same period last year. Current
year third quarter revenue includes $39,421,000 attributable to the businesses
of Host Communications, Inc. (Host) and Universal Sports America, Inc. (USA),
acquired December 17, 1999. As a result of consolidating Host's and USA's
operating results with Bull Run's results for the first complete quarter
following the acquisition, operating cash flow (defined as operating income
before depreciation and amortization) for the quarter ended March 31, 2000 was
$4,864,000 compared to $127,000 for the same period last year. Bull Run
reported a net loss of $(781,000) for the third quarter ended March 31, 2000,
compared to a net loss of $(1,057,000) for the same period last year.
For the nine months ended March 31, 2000, Bull Run reported that total
revenue was $67,177,000 for the nine months ended March 31, 2000, including
$45,513,000 associated with Host and USA for the period December 17, 1999
(date of acquisition) through March 31, 2000, compared to $24,385,000 for the
same period last year. Operating cash flow for the nine months ended March
31, 2000 was $6,291,000 compared to $1,511,000 for the same period last year.
Bull Run's net loss of $(258,000) for the nine months ended March 31, 2000 was
favorably impacted approximately $1,600,000 by a $2,492,000 pretax gain on the
issuance of common shares by Gray Communications Systems, Inc.
(NYSE: GCS and GCS.B) and approximately $1,250,000 as a result of Bull Run's
proportionate share of a gain recognized by USA on the sale of an investment.
Bull Run's net income for the nine months ended March 31, 1999 of $2,585,000
was favorably impacted by approximately $4,000,000 as a result of Bull Run's
proportionate share of a gain recognized by Gray on the sale of a television
station.
Robert S. Prather, Jr., Bull Run's President and CEO, commented, "We are
very pleased with our third quarter results, the first fiscal period in which
we consolidate a complete quarter's results for Host and USA. The quarter
ended March 31 includes a significant amount of revenue derived from Host's
Collegiate business segment in connection with conference and NCAA national
championship basketball tournaments. Host is involved in virtually every
aspect of the NCAA tournament and the Final Four, from producing the network
radio broadcasts, to coordinating corporate marketing and advertising, to
producing, along with Total Sports, the official Internet site for the
tournament, to publishing and printing all of the official tournament game
programs. Also during this quarter, USA's Streetball Partners business
segment kicked off its Hoop-It-Up 3-on-3 basketball tour, which runs through
October."
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 Communications, an owner and operator of
13 television stations and four newspapers, Bull Run also has significant
investments in Total Sports, Inc., a sports content Internet company;
iHigh.com, Inc., a company developing a network of web sites focused on high
school sports and activities; 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 third quarter
and year-to-date operating results on Tuesday, May 16, 2000. The call will
begin at 10:00 AM EST, and it will be available for replay via telephone until
May 23, 2000. The live dial-in number is (800) 450-0819. The taped replay
will be available at (800) 475-6701 and the access code for the taped replay
is 518154.
BULL RUN CORPORATION
Comparative Results of Operations
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
March 31, March 31,
2000 1999 2000 1999
Revenue from services rendered $39,426 $195 $46,816 $1,162
Revenue from computer printer
operations 5,473 7,533 20,361 23,223
Total revenue 44,899 7,728 67,177 24,385
Operating costs and expenses:
Direct operating costs for
services rendered 25,993 31,028
Cost of revenue from
printer operations 4,099 5,375 14,716 16,841
Selling, general and
administrative 10,007 1,634 14,556 4,530
Research and development 482 706 1,451 1,875
40,581 7,715 61,751 23,246
Operating income before goodwill
amortization 4,318 13 5,426 1,139
Goodwill amortization 1,254 132 1,716 378
Operating income (loss) 3,064 (119) 3,710 761
Equity in earnings (losses)
of affiliates (514) (470) (647) 6,410
Gain on issuance of shares
by affiliate 2,492
Interest and dividends, net (2,573) (979) (5,093) (2,602)
Debt issue cost amortization (415) (8) (529) (23)
Other income (expense) 172 (2) 559 (122)
Income (loss) before
income taxes (266) (1,578) 492 4,424
Income tax benefit (provision) (515) 521 (750) (1,839)
Net income (loss) $(781) $(1,057) $(258) $2,585
Earnings (loss) per share - Basic $(0.02) $(0.05) $(0.01) $0.12
Weighted avg. shares outstanding
- Basic 34,700 22,264 27,082 22,274
Earnings (loss) per share
- Diluted $(0.02) $(0.05) $(0.01) $0.11
Weighted avg. shares outstanding
- Diluted 34,700 22,264 27,082 23,199
Comparative Balance Sheets
(in thousands)
March 31, June 30,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $158 $323
Accounts and notes receivable 54,983 3,927
Inventories 7,183 5,505
Prepaid costs and expenses 12,964 160
75,288 9,915
Property and equipment, net 9,125 2,620
Investment in affiliated companies 84,528 85,311
Goodwill and other assets 99,499 8,252
$268,440 $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 35,626 4,149
Deferred revenue 13,028
Deferred income taxes 967
59,621 71,510
Long-term debt 117,494
Deferred income taxes and other liabilities 9,326 6,594
Stockholders' equity 81,999 27,994
$268,440 $106,098
SOURCE Bull Run Corporation
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Related links:
http://www.datasouth.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, of Bull Run Corporation,
704-602-3107
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