Operating Results of Host Communications, Bull Run's Wholly Owned Subsidiary,
Significantly Improved Over Prior Year
ATLANTA, July 16 /PRNewswire-FirstCall/ -- Bull Run Corporation
(Nasdaq: BULL) today announced that its wholly-owned operating subsidiary,
Host Communications, Inc., continued to generate significantly improved
operating results for the third fiscal quarter ended May 31, 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 nine months ended May 31, 2003, Bull Run reported income from
operations of $3,810,000 compared to a loss from operations of $(8,151,000)
for the same period last year. The current year-to-date results include
nonrecurring consulting income of $5,267,000. For the three months ended
May 31, 2003, Bull Run reduced its loss from operations to $(738,000) from
$(5,069,000) for the same period last year. Operating income generated by the
Company's Host Communications operating unit improved by more than
$4.2 million for the quarter ended May 31, 2003 compared to the same period
last year, and by more than $6.1 million for the nine months ended
May 31, 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.
Total revenue was $18,154,000 and $66,889,000 for the three months and
nine months ended May 31, 2003, respectively, compared to $32,416,000 and
$92,163,000 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 Company's current fiscal year, Gray Television, Inc.
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 $(2,040,000)
and $(6,227,000) for the three months and nine months ended May 31, 2003,
respectively, compared to $(3,866,000) and $(10,101,000) for the same
respective periods in the prior year. As a result of the improved operating
performance and the reduction in the amount of non-operating non-cash charges,
the Company's resulting net loss for the three months and nine months ended
May 31, 2003 of $(4,659,000) and $(10,945,000), respectively, compared to the
prior year's net loss of $(7,396,000) and $(16,764,000) for the same
respective periods.
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 Gordon D. Whitener, Chief Executive
Officer of Host Communications, Inc., at (859) 226-4356
Summarized financial results for the quarter and nine months ended
May 31, 2003 and 2002 follow:
BULL RUN CORPORATION
Comparative Results of Operations (Unaudited)
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
May 31, May 31,
2003 2002 2003 2002
Revenue from services rendered $18,154 $32,416 $66,889 $92,163
Operating costs and expenses:
Direct operating costs for
services rendered 11,873 29,404 42,718 75,954
Selling, general and
administrative 6,715 7,770 19,449 23,392
Amortization of acquisition
intangibles 304 311 912 968
18,892 37,485 63,079 100,314
Income (loss) from operations (738) (5,069) 3,810 (8,151)
Equity in earnings (losses) of
affiliated companies 40 (200) (153) (2,034)
Net change in value of certain
derivative instruments 155 (446) (1,708) (3,305)
Loss on issuance of shares by
affiliate (2,339)
Gain (loss) on investment
dispositions and
investment valuation
adjustments (1,650) (2,572) (2,627) 492
Debt issue cost amortization (585) (648) (1,739) (2,190)
Interest and other, net (1,881) (2,216) (6,189) (6,705)
Loss before income taxes and
cumulative effect
adjustment (4,659) (11,151) (10,945) (21,893)
Income tax benefit 3,755 7,749
Loss before cumulative effect
adjustment (4,659) (7,396) (10,945) (14,144)
Proportionate share of affiliate's
cumulative effect of
accounting change (2,620)
Net loss (4,659) (7,396) (10,945) (16,764)
Preferred dividends (288) (121) (828) (309)
Net loss available to common
stockholders $(4,947) $(7,517) $(11,773) $(17,073)
Loss per share available to common
stockholders,
basic and diluted:
Loss before cumulative effect
adjustment $(1.25) $(2.03) $(3.03) $(3.96)
Cumulative effect of
accounting change (0.72)
Net loss available to common
stockholders $(1.25) $(2.03) $(3.03) $(4.68)
Weighted average number of shares
outstanding,
basic and diluted 3,971 3,697 3,890 3,648
SOURCE Bull Run Corporation
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Related links:
http://www.bullruncorp.com
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
Gordon D. Whitener, Chief Executive Officer of Host
Communications, Inc., +1-859-226-4356
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