Bull Run Corporation Announces Second Quarter Results
12 April 2005 - 1:30AM
PR Newswire (US)
Bull Run Corporation Announces Second Quarter Results ATLANTA,
April 11 /PRNewswire-FirstCall/ -- Bull Run Corporation (OTC:BULL)
today announced net income of $0.9 million for its six months ended
February 28, 2005, compared to a net loss of $(2.8) million for the
same six-month period of the prior fiscal year. For the three
months ended February 28, 2005, the Company's net loss was $(0.7)
million, compared to a net loss of $(1.7) million for the second
quarter of the prior fiscal year. The improvements in the current
year-to-date results over the prior year are primarily derived from
the stronger performance from the Company's historically-profitable
Collegiate Marketing and Production Services business segment, and
the Company's decision to discontinue its Affinity Events business
segment in August 2004. In December 2004, the Company completed the
sale of assets associated with the Hoop-It-Up 3-on-3 basketball
tour and the 3v3 Soccer Shootout tour, the primary components of
the Affinity Events segment. Total revenues from continuing
operations, derived entirely by the Company's operating subsidiary,
Host Communications, Inc., were $18.0 million for the second
quarter and $41.1 million for the six-month period ended February
28, 2005, representing a 10.3% increase for the second quarter and
a 14.7% increase year-to-date over the comparable periods of the
prior fiscal year. The Company's Collegiate business is seasonal,
and the segment's revenues and operating profits are anticipated to
be higher in the first six months in comparison with the remaining
six months of the year. The Collegiate segment, which includes the
Company's Printing and Publishing operations, is expected to
generate approximately 80-85% of the Company's total annual
revenues from continuing operations. "As we complete the first half
of our fiscal year, we are very encouraged by the results to date,"
said Robert S. Prather, Jr., the Company's President and CEO. "By
remaining focused on Host's historically-profitable Collegiate,
Printing and Publishing and Association Management businesses, and
by working to enhance our key business relationships in those
areas, we are realizing some tangible results and enhancing the
opportunities for growth." Thomas J. Stultz, President and CEO of
Host since August 2004, "As we near the completion of our
Collegiate year, we are very encouraged about the results we've
achieved thus far, but we understand that there is more to
accomplish. We are excited about working with our current
collegiate properties and our managed associations to develop
creative revenue-generating opportunities. We will continue to seek
contract extensions with many of our existing business partners and
aggressively pursue new properties as they become available. The
ten-year extension of our multi-media marketing rights agreement
with the University of Kentucky has helped solidify our position as
a recognized leader in collegiate sports marketing. Meanwhile, we
are extremely proud of our capabilities and the steady performance
of our association management teams." 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 six
months ended February 28, 2005 and February 29, 2004 follow: BULL
RUN CORPORATION Comparative Results of Operations (in thousands,
except per share amounts) Three Months Ended Six Months Ended
February February February February 28, 2005 29, 2004 28, 2005 29,
2004 Revenue from services rendered $18,034 $16,343 $41,109 $35,838
Operating costs and expenses: Direct operating costs for services
rendered 13,020 10,645 28,796 23,603 Selling, general and
administrative 4,283 4,451 8,626 8,859 Amortization of acquisition
intangibles 180 314 359 627 17,483 15,410 37,781 33,089 Operating
income 551 933 3,328 2,749 Net change in value of derivative
instrument 102 241 412 547 Debt issue cost amortization (351) (293)
(600) (584) Interest and other, net (1,091) (1,125) (2,250) (2,205)
Income (loss) from continuing operations (789) (244) 890 507
Discontinued operations 132 (1,446) 23 (3,319) Net income (loss)
(657) (1,690) 913 (2,812) Preferred dividends (503) (558) (1,032)
(1,090) Net loss available to common stockholders $(1,160) $(2,248)
$(119) $(3,902) Earnings (loss) per share available to common
stockholders, basic: Continuing operations $(0.20) $(0.18) $(0.02)
$(0.13) Discontinued operations 0.02 (0.32) 0.00 (0.75) $(0.18)
$(0.50) $(0.02) $(0.88) Earnings (loss) per share available to
common stockholders, diluted: Continuing operations $(0.20) $(0.18)
$0.06 $(0.13) Discontinued operations 0.02 (0.32) 0.00 (0.75)
$(0.18) $(0.50) $0.06 $(0.88) Weighted average number of common
shares outstanding: Basic 6,529 4,500 6,121 4,420 Diluted 6,529
4,500 15,674 4,420 DATASOURCE: Bull Run Corporation 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 Web site:
http://www.bullruncorp.com/
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