Bull Run Corporation Announces Fiscal Year Results

Bull Run Corporation Announces Fiscal Year Results 


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


DATASOURCE: Bull Run Corporation



CONTACT:  Robert S. Prather, Jr., President & Chief Executive Officer,

[phone], or Frederick J. Erickson, VP-Finance & Chief Financial

Officer, [phone], both of Bull Run Corporation; or Thomas J. Stultz,

President & Chief Executive Officer of Host Communications, Inc.,

[phone]



Web site:  http://www.bullruncorp.com/ 

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