ATLANTA, March 4 /PRNewswire-FirstCall/ -- Cox Radio, Inc.
(NYSE:CXR) today reported financial results for the three-month and
twelve-month periods ended December 31, 2008. Financial highlights
(in thousands, except per share data and percentages) are as
follows: Three Months Ended Twelve Months Ended December 31,
December 31, 2008 2007 2008 2007 Net revenues $99,345 $114,332
(13.1%) $410,239 $444,852 (7.8%) Station operating income (1)
29,550 46,427 (36.4%) 146,234 178,922 (18.3%) Station operating
income margin (2) 29.7% 40.6% - 35.6% 40.2% - Operating (loss)
income $(574,489) $(77,806) * $(627,967) $25,587 * Net (loss)
income (357,325) (52,116) * (404,002) 1,867 * Net (loss) income per
common share - diluted $(4.45) $(0.57) * $(4.80) $0.02 * Free cash
flow (3) 16,710 27,661 (39.6%) 93,124 103,658 (10.2%) * Results are
not statistically meaningful. (1) Station operating income is not a
measure of performance calculated in accordance with accounting
principles generally accepted in the United States (GAAP). Please
see the attached table for a reconciliation to operating income,
the most directly comparable GAAP financial measure. (2) Station
operating income margin is station operating income as a percentage
of net revenues. (3) Free cash flow is not a measure of performance
calculated in accordance with GAAP. Please see the attached table
for a reconciliation to net income, the most directly comparable
GAAP financial measure. Operating Results - Fourth Quarter 2008 Net
revenues for the fourth quarter of 2008 were $99.3 million, down
13.1% from the fourth quarter of 2007. Due to the current economic
downturn, many of our advertisers have reduced spending on
advertising. Local revenues decreased 14.4%, national revenues
decreased 10.3% and other revenues, which include Internet and
other non-traditional revenues, decreased 9.4%, each as compared to
the fourth quarter of 2007. Overall, revenues have declined in the
majority of our markets relative to the prior year due to continued
weakness in the general economy and, more specifically, the
advertising market. Cost of services is comprised of expenses
incurred by our technical, news and programming departments. Cost
of services increased $1.2 million, or 4.9% compared to the fourth
quarter of 2007. This increase was primarily the result of
additional costs associated with programming talent in our Atlanta
and Tampa markets. Increased programming costs were partially
offset by a reduction in compensation expense associated with
performance unit awards issued under our Long-Term Incentive Plan
(LTIP). Compensation expense for these awards is recognized over a
five-year period and is based on the amount that is ultimately
expected to be paid upon vesting. During the fourth quarter of
2008, we revalued our outstanding performance unit awards to
reflect amounts ultimately expected to be paid out upon vesting,
which resulted in a reversal of previously-accrued compensation
expense to reflect updated expectations. Selling, general and
administrative expenses are comprised of expenses incurred by our
sales, promotion and general and administrative departments. These
expenses decreased $3.2 million, or 7.3% when compared to the
fourth quarter of 2007. This decrease was primarily attributable to
a reduction in compensation expense associated with performance
units awarded under our LTIP, as discussed above, as well as a
reduction in promotion expense in the majority of our markets.
Corporate general and administrative expenses decreased $0.7
million, or 15.4% when compared to the fourth quarter of 2007, due
to a reduction in compensation expense associated with performance
units awarded to corporate employees under our LTIP, as discussed
above. Our operating loss for the fourth quarter of 2008 was $574.5
million, as compared to an operating loss of $77.8 million for the
fourth quarter of 2007. Both quarters were adversely affected by
non-cash write-downs of impaired Federal Communications Commission
(FCC) licenses and goodwill. Pursuant to Statement of Financial
Accounting Standard (SFAS) No. 142, "Goodwill and Other Intangible
Assets," we recorded impairment charges of $601.6 million and
$117.1 million during the fourth quarters of 2008 and 2007,
respectively, in order to reduce the carrying value of intangible
assets in certain markets to their estimated fair values. Interest
expense during the fourth quarter of 2008 decreased $1.4 million,
or 28.0% when compared to the fourth quarter of 2007, due to a
lower borrowing rate under our credit facility. The average
interest rate on our credit facility was 3.5% during the fourth
quarter of 2008 and 5.7% during the fourth quarter of 2007. Our
income tax benefit increased in the fourth quarter of 2008, as
compared to the fourth quarter of 2007, to a net benefit of $220.7
million. This increase was primarily due to the increased non-cash
impairment charge discussed above, as compared to the prior year
quarter. Our overall effective tax rate was 38.2% for the fourth
quarter of 2008 and 36.7% for the fourth quarter of 2007. Our net
loss for the fourth quarter of 2008 was $357.3 million, compared to
a net loss of $52.1 million for the fourth quarter of 2007. This
change was primarily attributable to lower revenues and the
increased non-cash impairment charge discussed above. Operating
Results - Full Year 2008 Net revenues for 2008 decreased $34.6
million, a 7.8% decrease compared to 2007. Local revenues decreased
7.2%, national revenues decreased 11.7% and other revenues
decreased 3.0%, each as compared to 2007, due to overall weakness
in the economy and the advertising market. Our stations in Long
Island, Birmingham and Tulsa delivered revenue growth during 2008.
Those increases were more than offset by results of our stations in
Atlanta, Orlando, Miami, Tampa, San Antonio, Southern Connecticut,
Jacksonville and Richmond, where revenues were down for 2008. Cost
of services increased $2.6 million, or 2.7% over 2007, due
primarily to increased costs associated with programming talent,
particularly in our Atlanta and Tampa markets. Selling, general and
administrative expenses decreased $12.1 million, or 6.9% compared
to 2007, due to decreased compensation expense associated with
performance units awarded under our LTIP and a decline in sales
commissions and bonuses. Corporate general and administrative
expenses decreased 14.5%, or $2.9 million compared to 2007, also
due to a reduction in compensation expense associated with
performance units awarded to corporate employees under our LTIP.
Our operating loss for 2008 was $628.0 million, compared to
operating income of $25.6 million for 2007, due to an increased
non-cash write-down of impaired intangible assets. We recorded
non-cash impairment charges of $749.3 million and $117.1 million in
2008 and 2007, respectively, in order to reduce the carrying value
of FCC licenses and goodwill in certain markets to their estimated
fair values. Included in the total $749.3 million charge was a
non-cash impairment charge of $147.7 million, recorded in the first
half of 2008, pursuant to an interim assessment of the fair value
of our FCC licenses and goodwill. SFAS No. 142 requires that
goodwill and certain intangible assets be tested for impairment at
least annually, or more frequently if events or changes in
circumstances indicate the assets might be impaired. Our interim
assessment was based on deteriorating macro-economic factors,
including declining radio industry revenues, during the first half
of the year. Interest expense during 2008 totaled $13.7 million, as
compared to $21.1 million for 2007. This decrease was primarily
attributable to a lower borrowing rate under our credit facility.
The average rate on our credit facility was 3.6% during 2008 and
6.0% during 2007. Income tax expense decreased to a net income tax
benefit of $237.6 million during 2008, as compared to 2007, due
primarily to the aggregate non-cash impairment charges recorded in
2008 discussed above. Our effective tax rates for 2008 and 2007
were 37.0% and 67.7%, respectively. The change in income tax
expense was due to a combination of factors, including the change
in pre-tax income, differences in book and tax treatment associated
with the 2007 and 2008 non-cash impairment charges and adjustments
for the actual or expected resolution of income tax audits. Our net
loss for 2008 was $404.0 million, compared to net income of $1.9
million for 2007, due to the increased non-cash impairment charges
discussed above and lower revenues. Other Matters On August 1,
2008, we consummated the acquisition of six radio stations serving
the Athens, Georgia market. The six stations -- WNGC-FM, WGMG-FM,
WPUP-FM, WGAU-AM, WRFC-AM and WXKT-FM -- were acquired for
approximately $60 million, less $12 million previously paid to the
sellers. As of December 31, 2008, we had one remaining share
repurchase program through which Cox Radio, from time to time, may
repurchase shares of its Class A common stock in the open market or
through privately negotiated transactions. Repurchased shares are
held in treasury, and we may commence, suspend or terminate
repurchases without prior notice, depending on market conditions
and various other factors. During the fourth quarter of 2008, we
repurchased 0.8 million shares of Class A common stock for an
aggregate purchase price of approximately $4.9 million, including
commissions and fees. As of December 31, 2008, we had purchased a
total of approximately 21.4 million shares under all of our
repurchase programs for an aggregate purchase price of
approximately $261.4 million, including commissions and fees, at an
average price of $12.22 per share. Approximately $38.6 million
remained authorized for additional repurchases as of December 31,
2008. We may commence, suspend or terminate repurchases at any
time, without prior notice, depending on market conditions and
various other factors. Cox Radio is one of the largest radio
companies in the United States based on revenues. Cox Radio owns,
operates or provides sales or marketing services for 86 stations
(71 FM and 15 AM) clustered in 19 markets, including major markets
such as Atlanta, Houston, Miami, Orlando, San Antonio and Tampa.
Cox Radio shares are traded on the New York Stock Exchange under
the symbol: CXR. Cox Radio will host a teleconference to discuss
its financial results on Wednesday, March 4th at 11:00 a.m. Eastern
Time. To access the teleconference, please dial (973) 582-2854 ten
minutes prior to the start of the call. A live webcast of the
teleconference will be available on the investor relations section
of our website at http://www.coxradio.com/. If you cannot listen to
the teleconference at its scheduled time, a replay of the
teleconference will be available through Wednesday, March 11, 2008
and can be accessed by dialing (800) 642-1687 (U.S.) or (706)
645-9291 (Int'l), passcode 80529943. The webcast will also be
archived on our website for 30 days. Consolidated Statements of
Income - Unaudited (In thousands, except per share data) Three
Months Ended Twelve Months Ended December 31, December 31, 2008
2007 2008 2007 Net revenues: Local $68,398 $79,934 $290,726
$313,196 National 21,187 23,622 82,833 93,826 Other 9,760 10,776
36,680 37,830 Total revenues 99,345 114,332 410,239 444,852
Operating expenses: Cost of services (exclusive of depreciation and
amortization shown below) 25,488 24,295 96,705 94,120 Selling,
general and administrative 40,552 43,738 164,266 176,364 Corporate
general and administrative 3,592 4,244 17,344 20,287 Depreciation
and amortization 2,532 2,702 10,454 11,169 Impairment of intangible
assets 601,629 117,134 749,262 117,134 Other operating expenses,
net 41 25 175 191 Operating (loss) income (574,489) (77,806)
(627,967) 25,587 Other income (expense): Interest expense (3,582)
(4,972) (13,696) (21,091) Other items, net 6 500 33 1,291 (Loss)
Income before income taxes (578,065) (82,278) (641,630) 5,787
Current income tax expense 2,061 7,248 15,369 28,390 Deferred
income tax benefit (222,801) (37,410) (252,997) (24,470) Total
income tax (benefit) expense (220,740) (30,162) (237,628) 3,920 Net
(loss) income $(357,325) $(52,116) $(404,002) $1,867 Net (loss)
income per share - basic Net (loss) income per common share $(4.45)
$(0.57) $(4.80) $0.02 Net (loss) income per share - diluted Net
(loss) income per common share $(4.45) $(0.57) $(4.80) $0.02
Weighted average basic common shares outstanding 80,381 91,610
84,111 93,915 Weighted average diluted common shares outstanding
80,381 91,610 84,111 94,513 Selected Balance Sheet Data - Unaudited
(In thousands) December 31, December 31, 2008 2007 Cash $603 $2,009
Total assets 1,292,087 1,997,364 Amounts due from (to) Cox
Enterprises, Inc. 1,396 (16,602) Long-term debt(1) 400,050 320,000
Total liabilities 645,365 843,124 Total shareholders' equity
646,722 1,154,240 (1) Consists of amounts borrowed under our
revolving credit facility that expires in July 2011. Supplemental
Cash Flow Disclosures - Unaudited (In thousands) Twelve Months
Ended December 31, 2008 2007 Net cash provided by operating
activities $104,440 $122,532 Net cash used in investing activities
(64,677) (14,721) Net cash used in financing activities (41,169)
(110,183) Capital expenditures 7,308 9,420 Cash paid during the
period for interest 14,452 21,453 Cash paid during the period for
income taxes 19,225 27,637 Use of Non-GAAP Financial Measures Cox
Radio utilizes certain financial measures that are not calculated
in accordance with GAAP to assess its financial performance. A
non-GAAP financial measure is defined as a numerical measure of a
company's financial performance that: (i) excludes amounts, or is
subject to adjustments that have the effect of excluding amounts,
that are included in the comparable measure calculated and
presented in accordance with GAAP in the statement of income or
statement of cash flows; or (ii) includes amounts, or is subject to
adjustments that have the effect of including amounts, that are
excluded from the comparable measure so calculated and presented.
The non-GAAP financial measures used in this release are station
operating income, station operating income margin and free cash
flow. -- Station operating income is operating income excluding
other operating expenses, net, certain non-recurring items,
depreciation and amortization, non-cash compensation expense and
corporate general and administrative expenses. -- Station operating
income margin is station operating income as a percentage of net
revenues calculated in accordance with GAAP. -- Free cash flow is
net income plus deferred income tax expense (or less deferred
income tax benefit), other operating expenses, net, depreciation
and amortization and non-cash compensation expense, minus capital
expenditures, and adjusted to eliminate other items, net and other
items. Cox Radio's management believes that station operating
income, station operating income margin and free cash flow provide
useful data to evaluate Cox Radio's overall financial condition and
operating results and the means to evaluate our radio stations'
performance and operations. Management also believes that these
measures are useful to an investor in evaluating our performance
because they are commonly used financial analysis tools for
measuring and comparing media companies. In addition, management
uses these measures to evaluate individual radio station and
market-level performance, as well as our overall operations.
Station operating income and free cash flow should not be
considered as alternatives to operating income or net income as
indicators of Cox Radio's financial performance. Free cash flow
should not be considered an alternative to net cash provided by
operating activities as a measure of liquidity. Each of these
non-GAAP financial measures may not be comparable to similarly
titled measures used by other companies. The following table
reconciles operating income, from Cox Radio's financial statements
presented in accordance with GAAP, to station operating income, a
non-GAAP financial measure. Three Months Ended Twelve Months Ended
December 31, December 31, 2008 2007 2008 2007 (Unaudited) (In
thousands) Operating (loss) income $(574,489) $(77,806) $(627,967)
$25,587 Adjustments: Other operating expense, net 41 25 175 191
Other item: Impairment of intangible assets 601,629 117,134 749,262
117,134 Depreciation and amortization 2,532 2,702 10,454 11,169
Non-cash compensation expense (5,327) 141 (4,077) 6,528 Corporate
general and administrative (excludes ($1.6) million and less than
$0.1 million of non-cash compensation expense for the three months
ended December 31, 2008 and 2007, respectively, and ($1.0) million
and $2.0 million of non-cash compensation expense for the years
ended December 31, 2008 and 2007, respectively) 5,164 4,231 18,387
18,313 Station operating income $29,550 $46,427 $146,234 $178,922
The following table reconciles net income, from Cox Radio's
financial statements presented in accordance with GAAP, to free
cash flow, a non- GAAP financial measure. Three Months Ended Twelve
Months Ended December 31, December 31, 2008 2007 2008 2007
(Unaudited) (In thousands) Net (loss) income $(357,325) $(52,116)
$(404,002) $1,867 Adjustments: Deferred income tax benefit
(222,801) (37,410) (252,997) (24,470) Other items, net (6) (500)
(33) (1,291) Other operating expense, net 41 25 175 191
Depreciation and amortization 2,532 2,702 10,454 11,169 Non-cash
compensation expense (5,327) 141 (4,077) 6,528 Capital expenditures
(2,033) (2,315) (7,308) (9,420) Other items: Impairment of
intangible assets 601,629 117,134 749,262 117,134 Proceeds from
insurance recovery - - 1,650 1,950 Free cash flow $16,710 $27,661
$93,124 $103,658 DATASOURCE: Cox Radio, Inc. CONTACT: Analysts and
Investors, Charles Odom, Chief Financial Officer, Cox Radio, Inc.,
+1-678-645-4315; or Analysts, Investors, Press or Media, Chris
Plunkett, Brainerd Communicators, Inc., +1-212-986-6667, Web Site:
http://www.coxradio.com/
Copyright
Grafico Azioni Cox Radio A (NYSE:CXR)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Cox Radio A (NYSE:CXR)
Storico
Da Giu 2023 a Giu 2024