ATLANTA - Cox Radio, Inc. today reported financial results for the three and twelve-month periods ended December 31, 2001.<br>
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Robert F. Neil, President and Chief Executive Officer, commented, "2001 marked a record year for Cox Radio in terms of both revenues and broadcast cash flow despite an overall soft advertising environment. <br>
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In addition, our fourth quarter results<br>
exceeded our previously announced guidance on all metrics -- revenues, broadcast cash flow, and after-tax cash flow. Our performance has been achieved by maintaining a focus on building strong local brands that serve both our listeners and advertisers." During the past several years, Cox Radio has actively managed its portfolio of radio stations through selected acquisitions, dispositions and exchanges.<br>
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In February 2001, Cox Radio acquired WDYL-FM serving Richmond, Virginia and WJMZ-FM and WHZT-FM (formerly WPEK-FM) serving Greenville, South Carolina for a total of $52.5 million.<br>
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In February 2001, Cox Radio entered into a joint sales agreement to provide sales and marketing services for WARV-FM serving Richmond, Virginia. In addition, Cox Radio is a guarantor of the owner's financing for the acquisition of this station.<br>
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In February 2001, Cox Radio disposed of WHOO-AM serving Orlando, Florida for $5 million, resulting in a pre-tax gain of approximately $2.4 million. <br>
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In May 2001, Cox Radio disposed of the assets of KGTO-AM serving Tulsa, Oklahoma for $0.5 million.<br>
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In July 2001, Cox Radio disposed of the assets of WVBB-AM (formerly WTVR-AM) serving Richmond, Virginia for $0.7 million.<br>
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In January 2002, Cox Radio disposed of the assets of KRTR-AM (formerly KGMZ-AM) serving Honolulu, Hawaii for $0.6 million. <br>
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On an actual basis, net revenues for 2001 increased $25.9 million to $395.3 million, a 7.0% increase over 2000, primarily as a result of the acquisition of stations in Houston and Richmond during late 2000 and in Greenville and Richmond in early 2001 in addition to strong local revenues throughout the year offset by a soft national advertising market. <br>
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Station operating expenses increased $24.8 million to $246.4 million, an increase of<br>
11.2% over 2000 primarily as a result of the acquisition of stations during<br>
late 2000 and early 2001, targeted marketing and promotion spending, and costs<br>
associated with reformatting underperforming stations. <br>
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Broadcast cash flow increased $1.1 million to $148.9 million, an increase of 0.8% over 2000 for the reasons discussed above.<br>
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Cox Radio is the third largest radio company in the United States based on revenues. Cox Radio owns, operates or provides sales and marketing services for 81 stations (68 FM and 13 AM) clustered in 18 markets, including major<br>
markets such as Atlanta, Houston, Miami, Tampa, Orlando and San Antonio.
