Bull Run Corp., the parent company of marketer Host Communications Inc., reported a loss of $1.24 million for its first quarter ended Nov. 30, compared with a $1.36 million loss for the same period in 2001.
Total revenue for the company, which last year changed its fiscal year end from June 30 to Aug. 31, was $31.1 million for the quarter, compared with $35.7 million for the same period the prior year. The decrease in revenue was largely due to the restructuring and elimination of certain contracts, the company said.
Operationally, Bull Run fared significantly better in its first quarter compared to last year. For the three months ended Nov. 30, Bull Run reported $6.3 million in operating income, compared with a $102,000 operating loss for the same period in 2001. The results included nonrecurring consulting income of $5.26 million.
Revenue from Host, the company's primary operating unit, was $25.8 million for the quarter, compared with $35.7 million for the same period in 2001.
Despite lower revenue, operating income generated by Host was $1.7 million for the quarter, compared with $818,000 for the same period in 2001.
The end of the company's marketing agreement with the NCAA, which carried high annual rights fees, allowed for better results, said Jim Host, the company's CEO.
As of Nov. 30, the company had $93.9 million in outstanding long-term debt, according to public filings. In accordance with its credit agreement, Bull Run is scheduled to make payments of $5 million each on Jan. 15, April 15 and July 15 of this year. The company in December sold its investment in Rawlings Sporting Goods Co. for $6.74 million to make its January payment and a significant portion of the April payment.
In order to meet its remaining principal payment obligations, Bull Run said it likely will have to sell other investment assets held by the company or issue and sell equity securities of the company.
