ATLANTA, Sept. 29 /PRNewswire/ -- Bull Run Corporation (Nasdaq: BULL)
today announced that total revenue from continuing operations for the year
ended June 30, 2000 was $72,000,000 compared to $609,000 for the six-month
period ended June 30, 1999. The Company changed its fiscal year end from
December 31 to June 30 during 1999. Current year revenue includes $70,689,000
attributable to the businesses of Host Communications, Inc. (Host) and
Universal Sports America, Inc. (USA) acquired December 17, 1999. Effective
July 1, 2000, USA was merged into Host.
Total revenue from continuing operations for the three months ended June
30, 2000 was $25,184,000 compared to $414,000 for the same period last year.
Current year revenue for the quarter includes $25,177,000 attributable to Host
and USA.
Operating cash flow (defined as operating income before depreciation and
amortization) for Host-USA's operations, from the December 17, 1999
acquisition date through June 30, 2000, was approximately $7.6 million. On a
consolidated basis, the Company's operating cash flow for the year ended
June 30, 2000 was approximately $7.3 million, excluding a $1.46 million
nonrecurring charge associated with costs incurred by the Company in
connection with its investments, and non-cash amortization of acquisition
intangibles of $2.46 million for the year ended June 30, 2000.
The results for the quarter and the year ended June 30, 2000 were
negatively impacted by a $6.5 million after-tax charge for the estimated loss
on the sale of the Company's computer printer manufacturing business,
Datasouth Computer Corporation. The Company's decision to sell Datasouth was
directly a result of the Company's decision to focus on the sports, affinity
marketing and event management operations of Host. Datasouth's operating
results and the estimated loss on the sale of business are reported in the
Company's financial statements as a discontinued operation.
The Company recognized a pretax charge of $2.85 million in the quarter and
the year ended June 30, 2000 as a result of its decision to reduce the book
value of its investment in Rawlings Sporting Goods Company, Inc. The Company
also incurred a pretax charge of approximately $1.3 million during the quarter
and the year ended June 30, 2000 as a result of its proportionate share of a
$12.8 million after-tax charge taken by Rawlings in connection with Rawlings'
decision to sell its Vic hockey business. The Company also realized a $2.49
million pretax gain during the year ended June 30, 2000, resulting from a
capital transaction at Gray Communications Systems, Inc., a company in which
Bull Run has a 13.1% investment (representing 26.2% of the voting power.)
Primarily as a result of the unusual transactions and events discussed
above, the Company reported a loss from continuing operations of $5,423,000
for the quarter and $5,944,000 for the year ended June 30, 2000, and a net
loss of $12,525,000 for the quarter and $12,783,000 for the year ended June
30, 2000. For the quarter and the six months ended June 30, 1999, the Company
reported a loss from continuing operations of $921,000 and $1,995,000,
respectively, and a net loss of 1,204,000 and 2,261,000, respectively.
Robert S. Prather, Jr., Bull Run's President and CEO, commented, "The
unusual charges taken this quarter were necessary to properly reflect the book
value of some of our assets, including Datasouth. The decision to sell
Datasouth was more of a strategic decision than a financial one. Our
intention is to focus on the core operations of Host Communications, and
aggressively continue to grow it to maximize operating cash flow. Affinity
marketing is the direction that major corporate advertisers are rapidly
moving, and we believe that Host is uniquely positioned not only to capitalize
on that, but to generate revenues and cash flow from the properties that it
operates which support the affinity marketing platforms."
Bull Run, through Host, provides affinity, multimedia, promotional and
event management services to universities, high schools, athletics
conferences, associations and corporations. In addition to Gray, an owner and
operator of 13 television stations and four newspapers, and Rawlings, a
leading supplier of team sports equipment in North America, 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; 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 fourth quarter
and fiscal year operating results on Monday, October 2, 2000. The call will
begin at 2:00 PM EST, and it will be available for replay via telephone until
October 9, 2000. The live dial-in number is (800) 230-1092. The taped replay
will be available at (800) 475-6701 and the access code for the taped replay
is 541524.
For additional information, contact 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.
The Company's web site is http://www.bullruncorp.com .
BULL RUN CORPORATION
Comparative Results of Operations
(in thousands, except per share amounts)
Year Six Months
Three Months Ended Ended Ended
June 30, June 30, June 30,
2000 1999 2000 1999
Revenue from services
rendered $25,184 $414 $72,000 $609
Operating costs and
expenses:
Direct operating costs
for services
rendered 14,339 45,367
Selling, general and
administrative 10,544 297 21,891 693
Amortization of
acquisition
intangibles 1,160 2,460
26,043 297 69,718 693
Operating income (loss) (859) 117 2,282 (84)
Equity in losses of
affiliates (2,051) (527) (2,698) (997)
Other expense derived
from investments in
affiliated companies,
net (2,850) (358)
Interest and other, net (2,846) (878) (7,909) (1,858)
Income (loss) before
income taxes (8,606) (1,288) (8,683) (2,939)
Income tax benefit 3,183 367 2,739 944
Loss from continuing
operations (5,423) (921) (5,944) (1,995)
Loss from discontinued
operations, net (7,102) (283) (6,839) (266)
Net loss $ (12,525) $ (1,204) $ (12,783) $(2,261)
Loss per share -
Basic and Diluted:
Loss from continuing
operations $(0.16) $(0.04) $(0.20) $(0.09)
Discontinued operations (0.20) (0.01) (0.24) (0.01)
Net loss $(0.36) $(0.05) $(0.44) $(0.10)
Weighted average
shares outstanding 34,928 22,396 29,044 22,330
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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