ATLANTA, Nov. 30 /PRNewswire-FirstCall/ -- Bull Run Corporation
(OTC: BULL) today announced a net loss of $14.6 million for its fiscal year
ended August 31, 2004, compared to a net loss of $38.0 million for the prior
fiscal year. The net loss for the fourth quarter ended August 31, 2004 was
$5.5 million, compared to $27.0 million for the comparable period in the prior
year.
In August 2004, the Company announced that it was discontinuing its
Affinity Events business segment to focus on its core, historically-profitable
operations, consisting of its Collegiate, Association Management and
Printing/Publishing business units. The loss from discontinued operations was
$2.8 million in the recently completed quarter, and $7.5 million for the
fiscal year ended August 31, 2004. Current fiscal year results were also
unfavorably affected by a $3.3 million non-cash goodwill impairment charge.
Prior fiscal year results were unfavorably affected by a $30.5 million non-
cash goodwill and acquisition intangibles impairment charge and a $5.2 million
deferred tax provision to fully reserve the net carrying amount of deferred
tax assets, and were favorably affected by a $9.4 million gain on the
disposition of investments, net of other non-cash charges associated with
investment assets.
The Company's operating subsidiary, Host Communications, Inc., generated
revenues from continuing operations for the fourth quarter and fiscal year
ended August 31, 2004 of $7.2 million and $55.8 million, respectively,
compared to $8.5 million and $64.1 million for the fourth quarter and fiscal
year ended August 31, 2003, respectively. The decline compared to the prior
year was due primarily to the termination of certain of the Company's
collegiate contracts at the end of the 2003 fiscal year. The Company has
entered into new multi-year contracts for multi-media marketing rights with
the University of Arizona and Oklahoma State University which began generating
revenue in September 2004, and recently announced a ten-year extension of its
multi-media marketing rights agreement with the University of Kentucky. The
Company has also recently extended its contract to manage CrossSphere
(formerly, the National Tour Association), the nearly 4,000-member global
association for the packaged travel industry, for an additional three years
though 2007.
The Company also recently entered into an agreement to sell assets
associated with the Hoop-It-Up 3-on-3 basketball tour and the 3v3 Soccer
Shootout tour. These tours were the primary components of the Company's
discontinued Affinity Events business segment. The transaction is subject to
conditions to closing and is expected to close within the next 30 days.
Robert S. Prather, Jr., the Company's President and CEO commented, "With
the recent discontinuation and agreement to sell our Events business, we are
now poised to focus on our core Collegiate and Association relationships. We
are very pleased with what Tom Stultz, our new CEO at HOST, has brought to the
Company. Since arriving in August, he has been faced with some tough
decisions in order to eliminate losses and reduce overhead costs, while re-
establishing key business partner relationships. We are very excited about
the addition of our new Collegiate properties and the recent extensions of
some key contracts, and we look forward to aggressively pursuing new
opportunities with both our existing properties as well as other universities,
collegiate conferences and associations."
Bull Run, through its wholly-owned operating company, Host Communications,
Inc., provides comprehensive sales, marketing, multimedia, special event and
convention/hospitality services to NCAA Division I universities and
conferences and national/global associations. Bull Run's common stock is
quoted on the Pink Sheets ( http://www.pinksheets.com ), a centralized
quotation service for OTC securities, using the symbol "BULL". Additional
company information and stock quotes are available on the Company's corporate
web site at http://www.bullruncorp.com .
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.
Summarized financial results for each of the three months and years ended
August 31, 2004 and 2003 follow:
BULL RUN CORPORATION
Comparative Results of Operations
(in thousands, except per share amounts)
Three Months Ended Year Ended
August 31, August 31,
2004 2003 2004 2003
Revenue from services rendered $7,168 $8,546 $55,779 $64,129
Operating costs and expenses:
Direct operating costs for
services rendered 3,670 5,221 35,699 42,603
Selling, general and
administrative 4,784 4,928 18,220 20,397
Amortization and impairment of
acquisition intangibles 314 21,316 4,554 22,141
8,768 31,465 58,473 85,141
Loss from operations (1,600) (22,919) (2,694) (21,012)
Equity in losses of affiliated
companies (51) (204)
Loss on issuance of shares by
affiliate (2,339)
Gain on disposition of investments 17,150 17,150
Reduction in valuation of
investments in affiliates (2,562) (5,189)
Net change in value of certain
derivatives 347 673 1,294 (1,035)
Debt issue cost amortization (293) (628) (1,171) (2,367)
Interest and other, net (1,162) (2,037) (4,566) (8,226)
Pretax loss from continuing
operations (2,708) (10,374) (7,137) (23,222)
Income tax provision (5,222) (5,222)
Loss from continuing operations (2,708) (15,596) (7,137) (28,444)
Discontinued operations (2,755) (11,445) (7,474) (9,542)
Net loss (5,463) (27,041) (14,611) (37,986)
Preferred dividends (579) (321) (2,237) (1,149)
Net loss available to common
stockholders $(6,042) $(27,362) $(16,848) $(39,135)
Loss per share available to common
stockholders, basic and diluted:
Continuing operations $(0.65) $(3.86) $(2.01) $(7.42)
Discontinued operations (0.55) (2.77) (1.60) (2.40)
Net loss $(1.20) $(6.63) $(3.61) $(9.82)
Weighted average number of common
shares outstanding, basic and
diluted 5,034 4,129 4,668 3,987
SOURCE Bull Run Corporation
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Related links:
http://www.bullruncorp.com
CONTACT:
Robert S. Prather, Jr., President & Chief
Executive Officer, +1-404-266-8333, or Frederick J. Erickson,
VP-Finance & Chief Financial Officer, +1-859-226-4376, both of
Bull Run Corporation; or Thomas J. Stultz, President & Chief
Executive Officer of Host Communications, Inc., +1-859-226-4356
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