ATLANTA, Nov. 14 /PRNewswire/ -- Bull Run Corporation (Nasdaq: BULL) today
announced that total revenue from continuing operations for the three months
ended September 30, 2000 was $24,244,000 compared to $670,000 for the same
period last year. Current year revenue includes $24,239,000 attributable to
Host Communications, Inc., Bull Run's wholly owned subsidiary, acquired
December 17, 1999.
The Company's business is seasonal, since much of the Company's revenue is
related to events, promotions and services rendered during the collegiate
football and basketball seasons. As a result, the quarter ending September 30
generally results in less than a proportionate amount of the Company's
anticipated annual revenue and operating profit.
On September 29, 2000, the Company sold its computer printer manufacturing
business, as a strategic move to allow the Company to focus on the sports,
affinity marketing and management business acquired in December. An estimated
loss on the sale and an estimate of future operating losses was recognized as
of June 30, 2000. The operating results of the computer printer operation are
reported in the Company's financial statements as a discontinued operation.
The Company recognized income of $3,160,000 in the quarter ended September
30, 2000 from the cumulative effect of adopting a new accounting standard for
accounting for derivative investments and hedging activities.
Primarily as a result of its seasonal operating results, net of the
cumulative effect of the accounting change, the Company reported a net loss of
$1,181,000 for the quarter ended September 30, 2000, compared to income from
continuing operations of $23,000 and net income of $483,000 for the quarter
ended September 30, 1999.
Robert S. Prather, Jr., Bull Run's President and CEO, commented, "The
first quarter results reflect a change in our Company to a more seasonal
business since the acquisition of Host Communications last December. Much of
Host's revenue and operating profit is generated in the second and third
fiscal quarters, therefore our first quarter does not reflect the results we
expect for the year. We are also subject to some significant non-cash
expenses each quarter, such as $1.1 million in amortization of goodwill and
other acquisition intangibles, and $984,000 this quarter on our proportionate
share of losses generated primarily by certain of our affiliated companies.
As we are, certain of our affiliates are likewise affected by significant
goodwill amortization charges and to some extent, seasonality."
Mr. Prather continued, "We are pleased that we were able to complete the
sale of Datasouth, our computer printer manufacturing business. Our plans for
this year are to grow Host in terms of both revenue and profitability. We
were able to take a great step in that direction in October with the
acquisition of Summit Sports and Events, Inc., which provides our Affinity
Events segment a participatory soccer tour platform from which to build, a
basketball tour to complement Hoop-It-Up and other marketing platforms."
Bull Run, through Host, provides affinity, multimedia, promotional and
event management services to universities, high schools, athletics
conferences, associations and corporations. Bull Run also has significant
investments in Gray Communications Systems, Inc., an owner and operator of 13
television stations and four newspapers; Rawlings Sporting Goods Company,
Inc., a leading supplier of team sports equipment in North America, iHigh.com,
Inc., a company developing a high school marketing 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.
Summarized financial results for the three months ended September 30, 2000
and 1999 follows:
BULL RUN CORPORATION
Comparative Results of Operations
(in thousands, except per share amounts)
Three Months Ended
September 30,
2000 1999
Revenue from services rendered $ 24,244 $ 670
Operating costs and expenses:
Direct operating costs for services rendered 16,191
Selling, general and administrative 8,581 400
Amortization of acquisition intangiibles 1,137
25,909 400
Operating income (loss) (1,665) 270
Equity in earnings (losses) of affiliated companies (984) 630
Net change in value of certain derivative
instruments (123)
Debt issue cost amortization (814) (8)
Interest and other, net (2,512) (987)
Loss from continuing operations before income
taxes and cumulative effect adjustment (6,098) (95)
Income tax benefit 1,757 118
Income (loss) from continuing operations before
cumulative effect adjustment (4,341) 23
Cumulative effect of accounting change,
net of tax 3,160
Income (loss) from continuing operations (1,181) 23
Income from discontinued operations, net of tax 460
Net income (loss) $ (1,181) $ 483
Earnings (loss) per share -- Basic and Diluted:
Income (loss) from continuing operations before
cumulative effect adjustment $ (0.12) $ 0.00
Cumulative effect of accounting change 0.09 0.00
Discontinued operations 0.00 0.02
Net income (loss) $ (0.03) $ 0.02
Weighted average shares outstanding:
Basic 35,085 22,466
Diluted 35,085 23,310
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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