and another - Cox Enterprises
Transcription
and another - Cox Enterprises
6205 peachtree dunwoody road at l a n ta , g a 3 0 3 2 8 678-645-0000 w w w. c o x e n t e r p r i s e s . c o m 2 0 0 7 An n u a l R e p o rt One good thing leads to another and another Between Us. Among Us. All Around Us. Collaboration Is Bringing Out Our Best. Cox Enterprises is one of the nation’s leading media companies and providers of automotive services. We are a Top 10 national player, based on revenues, in every major business category where we compete. Major subsidiaries include: If you have ever played a team sport or cheered from the stands, you’ve witnessed the magic of collaborative effort. One player complements A n o t h e r R e co r d Y e a r Cox Communications – the third largest cable TV provider and among the largest broadband communications companies overall in the U.S. Manheim – the world’s leading provider of used vehicle services and a marketplace for the millions of cars that change hands every year. another to strengthen the team and, in doing so, achieves far more than what individual talents alone could produce. Cox Enterprises Consolidated Revenues In BILLIONS of Dollars 15.0 Cox Newspapers – one of the nation’s 10 largest newspaper publishing enterprises. 13.5 12.3 11.5 10.8 Cox Auto Trader – the world’s largest auto classified marketplace, utilizing both print and interactive media. 9.9 Cox Television – operates both network-affiliated and independent television stations across the country, as well as local cable television channels. 8.0 Cox Radio – one of the largest radio broadcasting companies in the U.S., based on revenues. 8.6 At Cox, this kind of collaboration takes place every day. As you will read on the following pages, when we work with each other – whether across the hall with a colleague, across Cox with another business or across town with a customer or business partner – good things happen. Working together to share ideas and solutions gives us the edge we need to compete and win in challenging marketplaces and also to improve the world around us. 6.2 5.3 and another 98 99 00 01 02 03 04 05 06 07 Front Cover (Left to Right) Back Cover (Left to Right) Leisa Powers Manager, Enterprise Applications Cox Enterprises Retta B. Kelley Director of Community Development and InfoVentures Austin American-Statesman Efrain Sanchez, Jr. Recon Manager Manheim Palm Beach Margaret Brosko Sports Anchor WHIO-TV Dayton, Ohio Francisco Luciano General Sales Manager WBTS-FM (95.5 The Beat), Atlanta The past decade has been a period of tremendous expansion for Cox Enterprises, with average annual revenue growth of nearly 12 percent. 83,000 Employees Amanda McCord District Sales Manager AutoTrader.com Ken “Ziggy” Yagodinski Field Engineer III Cox Communications Omaha COX ENTERPRISES 2007 ANNUAL REPORT A M essa g e F r o m J i m K enne d y an d J i mmy H ayes Collaborating for Business Success Cox people on the front lines of our businesses know that our customers’ expectations, and the products and services needed to meet and exceed them, are changing at lightning speed. Even with intense competition in the markets where we do business, remarkably, our company has achieved an average annual growth rate of nearly 12 percent over the last ten years. This growth creates not only stability in our operations, but also expanded opportunities for our employees. Collaboration was an essential ingredient for a year of solid financial performance in 2007. Despite an increasingly challenging economic environment, we achieved continued growth and made significant strides in debt reduction. In the face of more economic uncertainty in 2008, we are pleased to report that our financial condition remains strong and stable. This stability reflects the strong businesses and brands that make up our company. Well-regarded local brands have always been a cornerstone of our success, and, increasingly, we are building consumer brands within our portfolio of businesses that are more national in scope. In 2007, for instance, Cox Communications acquired the Travel Channel, the only television network devoted exclusively to travel entertainment. We also celebrated the national launch of Kudzu.com, the first website of its kind that enables consumers to find local service providers based, in part, on reviews by other consumers. Kudzu.com has the potential to grow into a “household name” brand across the nation. These national brands join existing ones such as Valpak, which is celebrating its 40th anniversary, as well as the Cox Auto Trader family of publications and websites, which are familiar names to millions of automotive shoppers online and in print. Left: Jim Kennedy Right: Jimmy Hayes Collaborating for the Greater Good A collaborative effort is also critical to how we address community challenges, and those that face the entire planet. We are tremendously proud of the initiative we launched this year, Cox Conserves, which sets ambitious environmental goals for our company, namely to reduce our carbon footprint by 20 percent over the next decade. By educating and motivating each of our employees to make personal choices to conserve, recycle and protect precious resources, we will magnify the impact of this program. Additionally, we are making investments that will reduce the environmental impact of our own facilities and infrastructure, as well as supporting community efforts that are aligned with our own environmental goals. Our ability to achieve such ambitious goals flows from what we like to call “Cox plus” – a unique combination of businesses, resources, assets and people unlike any other. When “Cox plus” is at work, it means we are taking advantage of our collective talents and capabilities all across the company. The resulting strength represents not only what we have, but also how well we put it together. A recap of 2007 would not be complete without reflecting on the legacies of two remarkable people who left us last year. Barbara Cox Anthony spent her life championing the growth of the company founded by her father, Governor James Cox. She was a visionary leader who pushed us to continually embrace new opportunities. Mrs. Anthony often reminded us that teamwork and a commitment to the greater good were even more important virtues than winning alone. Our friend Jim Robbins, who shared the same competitive zeal and tenacity as Mrs. Anthony, was a legendary pioneer of the cable and broadband industry. He made immeasurable contributions to the success of Cox Communications. Jim’s intense focus on great customer service – first, last and always – is a deeply embedded value that will remain part of our culture for years to come. Our company will continue to prosper because of our commitment to the values that these two individuals helped instill in us. We appreciate the efforts of all of our employees, whose collaboration and teamwork made this past year so successful. New opportunities await, and we look forward to the coming years when one good thing will continue to lead to another... and another With our best regards, Jim Kennedy Chairman and Chief Executive Officer Jimmy Hayes President and Chief Operating Officer a good thing Manheim’s Trusted Name Anyone who has ever owned a vehicle knows the value of a trusted mechanic. With a fleet of 435 trucks to maintain, Cox Communications Omaha has placed its trust in a familiar name. Manheim mechanics are stationed full-time at the Cox Communications facility to service and repair the fleet, leveraging Manheim’s automotive expertise and purchasing power. A chance meeting in Atlanta between Cox Communications and Manheim executives from Omaha led to Manheim submitting a proposal for the business when a third-party maintenance contract expired. Manheim offered a better level of service at a better price, with a comfort level that was hard to beat. Coincidentally, the same arrangement exists between Cox Communications and Manheim in New Orleans, the result of helping each other in the aftermath of Hurricane Katrina. These partnerships are working so well that both Manheim and Cox Communications are looking at expanding this program to other markets. and another (Left to Right) Bryan Dunn Network Maintenance Technician 2 Cox Communications Omaha Dennis Webster Recon Manager Manheim Omaha Steve Kennon Fleet Coordinator Cox Communications Omaha Korey Grell Assistant General Manager Manheim Omaha Charlie Vermele Technician Manheim Omaha Kim Gargis Fleet Coordinator Cox Communications Omaha COX ENTERPRISES 2007 ANNUAL REPORT COX ENTERPRISES 2007 ANNUAL REPORT and another A Good Thing Catering To The Customer It’s a Texas-style celebratory lunch for a team that has worked hard to take special care of Cox Radio advertisers in the Houston market. For starters, the number of advertising spots that run incorrectly has been significantly reduced, which has translated into returning $120,000 to Cox Radio’s bottom line. Advertisers are also provided with numerous value-added services, such as online access to their ad schedule for the next day by 4:30 p.m. the prior day. Much of the credit for this effort goes to customer service initiative (CSI) groups, cross-functional teams in each Cox Radio cluster across the company that meet regularly to ensure that their stations provide the most customer-centric environment possible for advertisers. The CSI groups, comprised of representatives from all stations in the cluster and all areas that directly touch the customer, ensure that Cox Radio stations are better in tune with customer needs. COX ENTERPRISES 2007 ANNUAL REPORT The Cox Radio Houston CSI Team: (Left to Right) Randy Schell Production Director Cox Radio – Houston Mark Krieschen Vice President/Market Manager Cox Radio – Houston Janna Poskey Traffic Director KHTC-FM Fred Peavey Research Director Cox Radio – Houston Doc Adams Creative Director Cox Radio – Houston Holli Richardson Traffic Director KKBQ-FM/KTHT-FM Bill Tatar Marketing Director KHPT-FM/KHTC-FM Kirk Phifer Staff Accountant Cox Radio – Houston Patricia Burkhardt Assistant Controller Cox Radio – Houston COX ENTERPRISES 2007 ANNUAL REPORT A Good Thing Rivals That Work Together Leading up to the biggest college football match-up of the year, it was hard to imagine an LSU Tiger and an Ohio State Buckeye working together. The staffs of the Dayton Daily News and Cox Sports TV, a division of Cox Communications Louisiana, however, came together to launch OSULSU.com, a fan site for both teams. Both Cox organizations contributed content that included stats, highlight videos and analysis. Fans also had their say by sharing photos, participating in polls and contributing to message boards. The site was a true testament to the Cox can-do attitude. The initial thought was simply to link the Dayton Daily News and Cox Sports TV websites to one another. Then, both staffs decided to think bigger. With the help of COXnet, which provides strategy, support and solutions for digital initiatives at Cox Newspapers, the site went from idea to reality in just 10 days and attracted nearly 1.5 million page views. Score a big win for teamwork! and another Ohio State’s Chris Wells tries to hurdle LSU’s Chevis Jackson during the BCS Championship Game in New Orleans. Photographer: Chris Stewart Dayton Daily News COX ENTERPRISES 2007 ANNUAL REPORT COX ENTERPRISES 2007 ANNUAL REPORT A Good Thing “¡Bienvenidos!” This was the very gracious and very advantageous welcome that Auto Mercado received when it moved into the Austin market last year. Cox Auto Trader’s Spanish-language auto publication was up and running in no time, thanks to their Cox colleagues at the Austin American-Statesman and its Spanish-language edition, ¡ahora sí! The newspaper shared office space, IT support and a distribution network, among other services, with Auto Mercado, providing it with an immediate competitive advantage. A year later, all three publications are helping one another grow through co-branding of classified listings and online editions, as well as promotional opportunities at important events such as the Austin Auto Show. and another (Left to Right) George Gutierrez Publisher ¡ahora sí! Ericka Weaver General Manager Auto Mercado - Austin Gilbert Hernandez Advertising Sales Consultant Auto Mercado - Austin Kelly Johnson Merchandising and Sales Manager Austin American-Statesman 10 COX ENTERPRISES 2007 ANNUAL REPORT COX ENTERPRISES 2007 ANNUAL REPORT 11 and another A Good Thing More Mileage Through Teamwork Cox automotive businesses pride themselves on providing cars that their customers want. And increasingly, customers want vehicles with better gas mileage. AutoTrader Publishing is helping them find these vehicles with the launch of AutoTrader Green, a publication featuring trucks and cars that get more than 30 MPG. For the initial market rollout, AutoTrader joined forces with Manheim Seattle to hold a “Green Lanes” sale. A dealer cross-promotion incentive provided discounts on either AutoTrader advertising or auction vehicle purchases. Manheim staff in Seattle made sure everyone got into the spirit by filling the green lane not only with green cars, but also with green balloons, green Gatorade®, green apples, and trees that were – you guessed it – green. With the success of the Seattle auction and brisk business for AutoTrader Green, the rollout is continuing in additional markets. The net result? A win-win-win for AutoTrader Publishing, Manheim and the environment. 12 COX ENTERPRISES 2007 ANNUAL REPORT Manheim Seattle employees: (Left to Right) Mike Rosendale Front Line Forces Abel Soto Mechanic Patty Penny Customer Experience Manager Julie Picard General Manager Ray Priest Assistant General Manager COX ENTERPRISES 2007 ANNUAL REPORT 13 A Good Thing 50,000 Personal Recommendations Know a good plumber in Phoenix? We do. As well as a good dog walker, restaurant, physician – you name it. Kudzu.com is the place to find consumer reviews of local services not only in Phoenix, but also in San Diego, Atlanta and Las Vegas. It’s a business that nearly 10,000 Cox employees have helped build. As a site that features user-generated content, Kudzu.com needed to gather reviews in order to launch. Tricky? Not when you collaborate with Cox employees. For the initial launch of Kudzu.com in Atlanta, 2,100 employees contributed reviews. Last fall, as the site began to roll out to other markets, another 7,100 Cox employees nationwide personally reviewed local service providers. In total, 9,200 of our own Cox employees generated approximately 50,000 reviews from their perspective as consumers. As it turns out, we’re a company of helpful people who know a lot of other helpful people. and another (Left to Right) Fran Mallace Vice President and General Manager Cox Media Arizona Michelle Hammel Sales Manager Kudzu.com Lee Jaffe Vice President, Advertising Sales Kudzu.com Gary Humbert Account Services Manager Cox Media Arizona 14 COX ENTERPRISES 2007 ANNUAL REPORT COX ENTERPRISES 2007 ANNUAL REPORT 15 A Good Thing When Less Is More In broadcast television, behind-the-scenes collaboration can translate into out-in-front competitive advantages. Cox Television stations in two markets have found a way to partner with each other on a technical basis in order to devote more resources to other areas, such as news coverage, programming and promotion – all areas that help attract more viewers. At KTVU-TV Oakland/San Francisco, one master control room and engineer manage the technical hub for four stations – KTVU itself, KICU-TV San Jose, and KRXI-TV and KAME-TV, both located in Reno. In the Pittsburgh market, WPXI-TV Pittsburgh, WTOV-TV Steubenville and WJAC-TV Johnstown are also utilizing this method of “hubcasting.” With nearly all seven stations consistently ranked number one or two in their respective markets, this collaboration is sending a strong signal of success. and another Takako Thorstad Master Control Operator KTVU-TV Oakland, California 16 COX ENTERPRISES 2007 ANNUAL REPORT COX ENTERPRISES 2007 ANNUAL REPORT 17 and another A Good Thing Taking Charge Miss America 2007 Lauren Nelson, with students from Norman North High School, Norman, Oklahoma. 18 COX ENTERPRISES 2007 ANNUAL REPORT G2GP911 – No, it’s not a license plate number, but a common chat room acronym that means, “Got to go, my parents are coming.” This is the type of information available at www.cox.com/takecharge – a website dedicated to helping parents manage what their kids see and don’t see on TV and the Internet. Realizing the benefits of reaching out to promote a common cause, Cox Communications has partnered with children’s advocate John Walsh, the National Center for Missing and Exploited Children (NCMEC) and Miss America 2007 Lauren Nelson to help parents and kids make smart choices about media use through its “Take Charge” program. Collectively, Cox Communications and its partners are engaging parents and kids through the website, public service announcements and the annual Cox Communications National Teen Summit on Internet Safety, which includes meetings on Capitol Hill to appeal to elected officials on the importance of online safety education. Because when it comes to the safety of our children, there’s no such thing as WTMI (way too much information). COX ENTERPRISES 2007 ANNUAL REPORT 19 A Good Thing Seeing Green In Just One Year It’s the ultimate collaboration – coming together to reduce our collective environmental impact and to enhance our stewardship of precious resources. Cox Conserves, our 10-year program to reduce our annual carbon footprint by 20 percent, is well under way companywide. The solar power panels pictured here are providing energy for Cox Communications operations in Orange County, California. Cox Newspapers has completed six web press conversions to save paper and energy. Nearly all Cox Television websites have posted new “Going Green” pages, while Cox Radio uses high-efficiency transmitters and LED lighting on towers. At Manheim, water-based paint is now used in a growing number of reconditioning shops, and Cox Auto Trader has implemented recycling programs for IT equipment, toner cartridges and pallets. This is just a small sampling of what we have achieved in year one, and these efforts are in addition to our 10 percent reduction in energy usage companywide since 2000 – a period during which the company doubled in size. and another 20 COX ENTERPRISES 2007 ANNUAL REPORT COX ENTERPRISES 2007 ANNUAL REPORT 21 One good thing leads to another and another 2007 Year In Review (Left to Right) Grace Huang Director, Business Development Cox Auto Trader Pecola Scott Senior HR Coordinator Cox Radio Roberta Christopher Executive Director, IT Cox Communications Alan Hicks Supervisor, Corporate Services Cox Enterprises Jason Smith Director, Human Resources Cox Newspapers Rebecca McClain Senior Manager, Customer Service Centers Manheim Amelia DiVenere Vice President, Finance and Administration Cox Television Insights That Guide Us All Good Things We Share Our businesses are challenged constantly by the need to focus on day-to-day operations, while also looking toward future opportunities. This is why one of our most important corporate responsibilities is to maintain a forward-looking perspective At Cox, we are a team of 83,000 individuals, often with vastly different responsibilities, priorities and perspectives. Yet, we for the entire company. Project Echo is one effort resulting come together time and again to help one another, further each of our businesses and achieve great things. There is no from this commitment. doubt that our shared values and business practices enhance our collaborative efforts. Indeed, no matter where you go within our widespread family of businesses, there are some common traits you will recognize. Led by Cox Enterprises’ corporate marketing department, Project Echo is a three-year research project to gain a better understanding of Echo Boomers, the generation born between 1977 and 1994. Echo Boomers, who already comprise 22 perBeltLine Project, Atlanta, GA Diversity Volunteerism At Cox, diversity is both a business strength and a corporate value. Our diverse workforce makes us more responsive to our diverse customer base, and our variety of perspectives helps shape our business strategy. Cox practices diversity within the company and works to promote it in the business community. On a combined basis, Cox businesses spend more than $300 million annually with minority- and/or women-owned suppliers. At the corporate and business level, we also provide cash Bike MS Race and in-kind donations to dozens of organizations, including the National Urban League, the National Council of La Raza, and the Human Rights Campaign. To foster a deeper appreciation for the diverse perspectives and backgrounds that Cox employees bring to their work each day, Cox offers a variety of formal diversity training courses. Since their launch in 1998, 9,450 employees from all Cox businesses have participated. By fostering diversity among our employees and businesses, Cox is able to develop and deliver products and services to meet a variety of consumer needs. Community involvement is a defining attribute of our company made apparent through the donation of our individual and collective time, talents and energy. Cox employees nationwide volunteer their time to a wide range of community programs. At the corporate level, Cox is the title sponsor of Bike MS (formerly the Cox MS 150), which benefits the Georgia Chapter of the National Multiple Sclerosis Society. Habitat for Humanity is another volunteer effort supported by Cox employees throughout metro Atlanta. From 2005 through 2007, 782 Cox employees have joined together to build three homes for deserving families. Philanthropy Cox has a long tradition of reinvesting in our businesses and our communities to create new opportunities for our employees and fellow citizens. We are also proud of the generosity of the James M. Cox Foundation and our employees. In addition to the millions of dollars contributed annually to organizations in the communities we serve, part of our customer and employee base as they come of age two recent gifts have focused on causes related to Cox’s business heritage and to our hometown of Atlanta. In keeping with our heritage and commitment to providing audiences with the highest in journalistic integrity, Cox and the James M. Cox Foundation are proud supporters of the Newseum (www.newseum.org) in Washington, D.C., a museum that celebrates 500 years of news history, scheduled to open in April 2008. Through a combined $6 million gift, Cox is the title sponsor of the First Amendment Gallery, a major exhibit hall conveying the history and modern-day relevance of the five freedoms – religion, speech, press, assembly and petition – guaranteed by the First Amendment. The Atlanta BeltLine, the largest urban redevelopment project in the country, is the beneficiary of another major gift from the James M. Cox Foundation. The BeltLine vision is to utilize 22 miles of abandoned railroad corridors to connect 45 intown neighborhoods through public transportation, parks and trails, as well as to spur economic and community development in the surrounding area. Cox Enterprises Chairman and CEO Jim Kennedy is co-chair of the $60 million capital campaign, and the James M. Cox Foundation has committed $5 million to this cause. $300 up nearly 30 percent of the adult population. The goal of Project Echo is to understand the ways in which Cox products and services can best meet the needs of this generation, as well as how to recruit and retain Echo Boomers in the Cox workforce. Echo Boomers As a Percentage of the U.S. Adult Population 32% 29% 22% Within two years, Echo Boomers will comprise nearly a third of the U.S. population and, by 2015, will represent the country’s largest demographic age group. Spent annually with minorityand/or women-owned suppliers COX ENTERPRISES 2007 ANNUAL REPORT over the next five years, when this group is expected to make 2006 2010 2015 Million 24 cent of our employee population, will become an even larger The First Amendment Gallery at the Newseum in Washington, D.C. (artist rendering courtesy of Newseum.org) COX ENTERPRISES 2007 ANNUAL REPORT 25 Good Numbers Some Measures of Our Businesses Cox Newspapers Cox Radio 20.7+ Billion 86 Stations* 170 Million Nearly Valpak Coupons Mailed in 2007 71 FM and 15 AM 15 Million Page Views Per Month to Newspapers’ Websites Cox Enterprises Employees and 2007 Revenue By Subsidiary Weekly Listeners *Pending the consummation of all announced transactions. Cox Auto Trader Employees Revenue Cox Communications 22,899 $ 8.3 billion Manheim 34,000 $ 3.3 billion Cox Newspapers 14,008 $ 1.4 billion Cox Auto Trader 6,026 $ 918 million Cox Television 2,727 $ 670 million Cox Radio 2,033 $ 445 million Cox Communications Nearly 6 Million Total Residential Customer Relationships in 18 Business Centers 3.7 Million Bundled Customers (those subscribing to two or more Cox services) More than 41 Million Customer Service Calls Handled at Call Centers in 2007 26 COX ENTERPRISES 2007 ANNUAL REPORT Manheim 145 Locations in 19 Countries on 5 Continents Nearly AutoTrader.com AutoTrader.com Revenue 13.1 Million ($ in millions) Average Unique Visitors Per Month 4 Million 273.7 AutoTrader/AutoMart Publishing 190.0 356 133.8 105.8 Titles 3.9 Million Magazines Distributed Weekly 1.0 5.2 57.1 27.4 98 99 00 01 02 03 04 05 06 07 Cox Television Cars Detailed Annually U.S. Dealer Visits Monthly (auction and online) 391.7 Average Monthly Vehicle Listings 2.5 Million 80,000 516.5 15 74.1 Million 30 Million 821.4 Million Stations Viewer Reach Unique Visitors to Station Websites in 2007 Page Views to Station Websites in 2007 COX ENTERPRISES 2007 ANNUAL REPORT 27 Good Things That Happened In Manheim • U.S. expansion initiatives included 26 new sale lanes at 11 existing locations, 12 new service centers, five Total Resource Auctions locations and a new operating location in Oklahoma. • OVE.com launched a new platform, creating the only “end-to-end” wholesale vehicle remarketing solution in the industry. • Received 26 awards from customers for sales performance, technology and customer service. • Achieved impressive results on major subscriber metrics, including 17.8 percent customer growth of Cox Digital Telephone; 11.3 percent growth of Cox High Speed Internet; and 10.6 percent growth of Cox Digital Cable. The company also achieved 9.1 percent growth in bundled customers (those subscribing to two or more services). More than 60 percent of Cox customers now subscribe to a bundle of services. • Launched Cox Tech Solutions, a new service to help customers troubleshoot computer problems – available via remote assistance and “house calls.” • For the seventh consecutive year, added more than one million new residential service subscriptions, or revenue generating units (RGUs). • Cox Media added numerous new advertising options to help clients better target and reach their customers, including wide-scale deployment of a video classified product for homes and autos, as well as local Video-on-Demand advertising. • Continued to garner recognition for business excellence, including receiving highest honors in J.D. Power and Associates’ 2007 Residential Regional Telephone Customer Satisfaction Study in three regions; again being named to the DiversityInc Top 50 Companies for Diversity® list; and receiving the company’s fourth PC Magazine Readers’ Choice Award for Cox High Speed Internet. Cox Communications in Southern California responded swiftly to support customers when wildfires erupted in the fall of 2007. 28 COX ENTERPRISES 2007 ANNUAL REPORT • Continued international expansion, with the acquisition of two auctions in Portugal and further expansion in China, where the company held the first Manheim Simulcast sale in that country. • Opened 200,000-square-foot, state-of-the-art reconditioning center in Manheim, Pennsylvania – the world’s largest facility, with 14 detail lanes and 19 vehicle service bays that can handle more than 850 cars per day. • Activated one of the most advanced wastewater treatment systems in the remarketing industry, reducing water demand at Manheim Pennsylvania by 60 percent. Cox Communications • Exchanged 25 percent stake in Discovery Communications for the stock of Travel Media, Inc., which held the Travel Channel, TravelChannel.com, and approximately $1.3 billion in cash. • Manheim Financial Services reached one million new floorplan originations – a significant milestone. • Cox Business increased commercial phone customers by nearly 30 percent and total customer relationships by more than 16 percent. • Provided extraordinary level of service to customers served by Cox Communications in San Diego and Orange County in the wake of devastating forest fires that displaced more than 600,000 residents. Free call forwarding, same-day installations and waived fees were among the customer care efforts extended to fire victims. Paint It Green A team of 10 Manheim and DuPont employees earned a 2007 Sustainable Growth Excellence Award from DuPont Coatings and Color Technologies for collaborating on a plan to switch from solvent-based to water-based automotive paint. The plan was implemented at seven of Manheim’s vehicle reconditioning centers. When all 91 of the North American locations where Manheim uses DuPont finishes convert to water-based paint, the company estimates it will reduce air pollutants by 40 percent (or 145 tons), and emissions of volatile organic compounds will be reduced by 25 percent. Emmy award-winner Samantha Brown is the host of several shows on the Travel Channel, a cable network acquired in 2007 by Cox Communications. More than 152 million viewers tuned in to the Travel Channel in 2007, an increase of 10 percent over 2006. (Source: Nielsen Media Research) COX ENTERPRISES 2007 ANNUAL REPORT 29 Good Things That Happened In Cox Auto Trader • AutoTrader.com increased revenue 32 percent in 2007, exceeding $500 million in its 10th year. • AutoTrader.com grew its paying dealer count to 22,000. • AutoTrader.com ranked highest for Overall Satisfaction among used-vehicle lead online buying for the fourth consecutive year, based on results from J.D. Power and Associates’ 2007 Dealer Satisfaction with Online Buying Services Study. For the first time, AutoTrader.com also ranked highest for Overall Satisfaction among new-vehicle lead providers. • AutoTrader.com partnered with MSN Autos and Kelley Blue Book to form the most comprehensive automotive network on the Internet. Cox Newspapers • Launched online employment relationship with Yahoo! HotJobs site at all Cox newspapers, which resulted in immediate top local audience rankings. • Online page views across all of Cox Newspapers’ sites grew to 170 million per month. Online advertising revenue increased 12.6 percent over 2006. • Celebrated the eighth anniversary of Statesman Swim Safe for Austin Kids, which has taught more than 7,465 youngsters to swim. The Statesman Season for Caring annual campaign, completing its ninth year, raised $710,000 in cash and $10,000 in in-kind goods and services, bringing the campaign total to $3,391,900 since its inception. • Valpak’s co-promotion with TV talk show host Ellen DeGeneres yielded a 112 percent increase in visitors to the Valpak.com site and a 180 percent rise in the number of coupons printed on the day DeGeneres announced the promotion on-air (over same-day figures for the prior month). • Launched new real estate websites for Atlanta, Austin, Ohio, and West Palm Beach newspapers, enabling users to search homes for sale (realtor-offered and For Sale by Owner), as well as rental homes, new homes and apartments. Search results also include information on recent home sales, schools, neighborhoods, builders and real estate agents. • COXnet built and produced “Living Green,” a website designed to help people live environmentally-friendly lifestyles. The site is shared among all Cox newspapers. • Created new publishing division that includes Auto Trader, Truck Trader, Auto Mart and Auto Mercado magazines as well as AutoMart.com and AutoExtra.com. • Acquired CarSpot, a provider of inventory management solutions to automobile dealers. • Launched AutoTrader Green magazine in the Seattle and Portland markets and a new car magazine in Southern California. • The Atlanta Journal-Constitution’s ajc.com surpassed one billion page views for the year in November 2007. The site also received 147 million visits during the year, up 27 percent over 2006. • Two Atlanta Journal-Constitution staffers garnered Pulitzer Prizes. Editorial Page Editor Cynthia Tucker, whose columns have appeared in the paper for 20 years, won for Commentary, while Managing Editor Hank Klibanoff was honored for History for co-authoring the book, “The Race Beat: The Press, the Civil Rights Struggle, and the Awakening of a Nation.” Cox Television • Created Cox Cross Media, a new digital sales company, to market and sell online media advertising for the 300-plus television stations that are currently represented by Cox Television’s three national sales representative firms. Cox Radio • Grew net revenues to $445 million, with Internet revenues growing 20 percent. • Grew Internet revenues by 34.7 percent. • Finished construction on a new highly environmentally-friendly building for WPXI-TV in Pittsburgh. • Generated $123 million in cash flows from operating activities, which funded Cox Radio’s stock repurchase program and continued debt reduction. • Launched two additional HD stations, WPXI-TV (Pittsburgh) and WSOC-TV (Charlotte). • Achieved ratings that represented continued industry leadership in the important Adults 25-54 demographic. • Extended digital broadcasting technology to almost two-thirds of our portfolio of radio stations. Statesman Swim Safe for Austin Kids has taught more than 7,465 youngsters to swim. 30 COX ENTERPRISES 2007 ANNUAL REPORT Partners in Prevention Cox Auto Trader and Cox Communications Hampton Roads partnered to present a $500,000 grant, secured from the James M. Cox Foundation, to Children’s Hospital of the King’s Daughters (CHKD) in Norfolk, Virginia. The grant will be used to fund a child abuse prevention program, which will provide medical care, education and support for children and families throughout the region at the hospital’s new outpatient facility in Virginia Beach. The program offers children a safe and nurturing environment where they can begin the healing process in the aftermath of abuse and neglect. The grant is an excellent example of how Cox businesses can come together to help a community. • Completed the upgrade of WKHK-FM in Richmond, Virginia, dramatically increasing the population reached by that station’s signal. • KFOX-TV (El Paso) was honored with a Lone Star Emmy for 2006 flood coverage. During the Southeast’s drought in 2007, Cox Television stations in the affected areas, such as WSOC in Charlotte and WSB in Atlanta, provided important news coverage of the region’s weather conditions, lake levels and water restrictions. • WSB-TV (Atlanta) developed www.GoingGreenGeorgia.com, offering information on environmental issues and trends, including recycling, recreation, green building and conservation. COX ENTERPRISES 2007 ANNUAL REPORT 31 Good Places To Be We’re in lots of them! From our beginning as a daily newspaper in Dayton, Ohio, more than a century ago, Cox Enterprises has expanded to encompass six major subsidiaries that collectively span the U.S. and an increasing number of international locations. When we need to collaborate, we have no shortage of places to turn for inspiration, ideas and partners. Headquarters Cox Communications Cox Communications Related Operations Manheim Cox Newspapers Cox Newspapers Related Operations 32 COX ENTERPRISES 2007 ANNUAL REPORT Cox Auto Trader AutoTrader.com DMAs with Salespeople Cox Television Broadcast Stations Cox Television Related Operations Cox Radio EUROPE CHINA & THAILAND SOUTH AFRICA AUSTRALIA & NEW ZEALAND HAWAII PUERTO RICO COX ENTERPRISES 2007 ANNUAL REPORT 33 In Good Company Our Operating Subsidiaries “I’m proud of our continued audience success in the TV markets we serve, and I’m excited by the growth of our websites. Additionally, 2007 marked the launch of our newest business, Cox Cross Media, which will provide a great service to advertisers and stations in terms of national website sales.” Andrew S. Fisher President Cox Television “Cox Communications is now the nation’s 7th‑largest telephone company, routing more than 50 million calls daily. We were pioneers in pursuing telephone as a critical piece of the cable ‘bundle’ of services, so our amazing growth validates both Cox’s strategic vision and the ability of Cox employees to execute that vision.” “During 2007, Cox Radio continued our ratings leadership among listeners. Our formula for success is based on attracting and retaining the best people, delivering compelling program‑ ming in an uncluttered environment and creating the best solutions to address the unique needs of our advertisers.” Patrick J. Esser President and Chief Executive Officer Cox Radio President Cox Communications Robert F. Neil “A newspaper is only as good as the people who produce it. That’s people, plural. Thousands of hands, literally and figuratively, touch the news and advertising that appear on every print and online page we produce each day. Collaboration resides deep in the DNA of Cox Newspapers. Now, more than ever, we must tap into the talent of every man and woman in our division. As we do, we will show the world what collaboration is all about.” Jay R. Smith President Cox Newspapers 34 COX ENTERPRISES 2007 ANNUAL REPORT “At Manheim, we want to exceed customers’ expectations and create a place where everyone feels proud to be part of our team. In 2007, we underscored our focus on creating positive and impactful experiences in all our interactions with customers and employees.” Dean H. Eisner President and Chief Executive Officer Manheim “With the formation of our new business unit, Cox AutoTrader/AutoMart, and with another record year for revenue and profits at AutoTrader.com, Cox Auto Trader continues to be the world’s ultimate automotive market‑ place. Our great customer service makes us second to none, and I’m proud of the commitment to excellence our employees demonstrate every day.” Sanford H. Schwartz President Cox Auto Trader COX ENTERPRISES 2007 ANNUAL REPORT 35 Corporate Officers Cox Communications, Inc. Patrick J. Esser Claus F. Kroeger Jennifer W. Hightower, Esq. Belinda Turner Patterson President Senior Vice President, Operations Vice President, Regulatory Affairs Vice President, People Services Christopher J. Bowick Joseph J. Rooney Mark A. Kaish Katherine S. Payne Senior Vice President, Engineering Chief Technical Officer Senior Vice President and Chief Marketing Officer Vice President, Voice Development and Support Vice President, Programming Mark F. Bowser Robert C. Wilson R. James Kelso Senior Vice President and Chief Financial Officer Senior Vice President, Programming Vice President, Video Engineering Vice President, Product Management and Marketing Jill Campbell Andrew I. Albert Veenod Kurup Jay A. Rolls Vice President, Programming Vice President, Data Product Services Vice President, Technology Stephen Bye Anthony J. Maldonado Robin H. Sangston, Esq. Vice President, Wireless Vice President, Acquisition and Marketing Sciences Vice President, Legal Affairs Mark D. McGuire Vice President, Government Affairs Senior Vice President, Operations Dallas S. Clement Senior Vice President, Strategy and Product Management Mae A. Douglas Senior Vice President and Chief People Officer F. William Farina Senior Vice President, Cox Media, Advertising Sales James A. Hatcher, Esq. Senior Vice President, Law and Policy Scott A. Hatfield Senior Vice President and Chief Information Officer Big Help for The Big Easy – Cox Communications spearheaded an initiative to help the City of New Orleans rebound from Hurricane Katrina by promoting tourism, partnering with 10 other broadband companies to commit at least $12 million in donated advertising time on their networks. The effort is expected to yield over $1.3 billion in visitor spending. Locations Following is a list of Cox Communications’ major operations: Arizona Georgia Louisiana Ohio Arizona operation includes Phoenix, Tucson, Sierra Vista and nearby areas Middle Georgia (Macon, Warner Robins and nearby areas) Cleveland area Arkansas Idaho Greater Louisiana (Baton Rouge, Lafayette and nearby areas) New Orleans Rogers/Bentonville, Fayetteville/ Springdale and Fort Smith Sun Valley Nebraska California Kansas Kansas operation includes Dodge City/Garden City, Manhattan/Junction City, Salina, Southeast Kansas, Topeka, Wichita and nearby areas Omaha (including Council Bluffs, Iowa) Florida Central Florida (Gainesville, Ocala and nearby areas) Gulf Coast (Pensacola, Ft. Walton Beach and nearby areas) Vice President, Sales and Distribution William J. Fitzsimmons Vice President, Solutions Delivery John P. Spalding, Esq. Mary E. Thigpen Vice President, Accounting and Financial Planning, Chief Accounting Officer Necole J. Merritt Steve M. Gorman Vice President, Field Operations Interim Vice President, Supply Chain Management Richard A. Mueller Mark S. Williams Vice President, Network Planning, Engineering and Operations Vice President, Technical Operations Stephen K. Necessary Vice President, Customer Care Vice President, Online Strategy and Interactive Media Thomas G. Guthrie Vice President, Information Technology Operations Erin B. Hand Vice President, Public Affairs Catherine R. Mitchell Vice President, Strategy Darrell F. Wells C. Scott Wise Vice President, Video Product Development Vice President, Talent and Development Operations Management Donn Young Photography (Courtesy of New Orleans Convention and Visitors Bureau) Orange County/Palos Verdes San Diego Santa Barbara Sheila Crosby David Pugliese Nevada Las Vegas New England New England operation encompasses Rhode Island and portions of Connecticut and Massachusetts Oklahoma Oklahoma operation includes Oklahoma City, Tulsa, Enid, Muskogee, Stillwater, McAlester and nearby areas Virginia Hampton Roads (including a small portion of North Carolina) Northern Virginia (Fairfax County and Fredericksburg) Roanoke Janet H. Barnard Kimberly C. Edmunds J. Stephen Rizley Mike J. Giampietro Senior Vice President and General Manager, Northern Virginia Senior Vice President and General Manager, Kansas/Arkansas Senior Vice President and General Manager, Arizona Vice President and General Manager, Central Florida David A. Bialis William K. Geppert Jacqui D. Vines L. Keith Gregory Senior Vice President and General Manager, Oklahoma Senior Vice President and General Manager, San Diego, California Senior Vice President and General Manager, Greater Louisiana Vice President and General Manager, Gulf Coast, Florida Greg Bicket Percy J. Kirk Marilyn S. Burrows Julie O. McGovern Senior Vice President and General Manager, New Orleans, Louisiana Senior Vice President and General Manager, Omaha, Nebraska Vice President and General Manager, Roanoke, Virginia Vice President and General Manager, Santa Barbara, California Leo W. Brennan Thomas H. “Duffy” Leone Anne Doris Patrick Younge Senior Vice President and General Manager, Las Vegas, Nevada Senior Vice President and General Manager, Orange County, California Vice President and General Manager, Cleveland, Ohio President and General Manager, Travel Channel Media, Friendship Heights, Maryland Paul J. Cronin Gary T. McCollum J. Michael Dyer Senior Vice President and General Manager, New England Senior Vice President and General Manager, Hampton Roads, Virginia Vice President and General Manager, Middle Georgia Related Operations Travel Channel Media Friendship Heights, Maryland 36 COX ENTERPRISES 2007 ANNUAL REPORT COX ENTERPRISES 2007 ANNUAL REPORT 37 Locations Following is a list of Manheim worldwide locations: Arizona Maryland South Carolina Manheim Arizona Manheim Phoenix Manheim Tucson Manheim Baltimore – Washington Manheim Darlington California Massachusetts Manheim New England Manheim Nashville Manheim Tennessee Michigan Manheim Detroit Manheim Flint Manheim Metro Detroit Manheim California Manheim Central California Manheim Los Angeles Manheim Riverside Manheim San Diego Manheim San Francisco Bay Manheim Southern California Colorado Corporate Account Management Dean H. Eisner Diane F. Barton Kevin R. Freudenberg President and Chief Executive Officer Vice President, Customer Experience Vice President, Factory Accounts Lilicia P. Bailey William A. Fielding Michael F. Moumousis Chief People Officer Chief Information Officer Vice President, National Accounts Michael W. Broe Harold J. Logan Cheryl Munce Executive Vice President, U.S. Operations Senior Vice President, Strategic Planning and Industry Relations Vice President, National Accounts, Canada Michael S. Lang Lynn M. Morgan Thomas J. Nohstadt Chief Marketing Officer Vice President, Manheim Consulting Vice President, Account Management Michael J. Langhorne David Munnikhuysen Peter M. Trench Senior Vice President, International Operations Vice President, Best Practices Vice President, National Accounts Ralph M. Liniado Vice President, Strategic Operations Senior Vice President, Business Development Berta M. Phelps Operations Online and Service Businesses Jamie D. Porter President, Total Resource Auctions J. David Young Group Vice President, Service Businesses International Clifford E. Anderson Vice President, China Operations John E. Bailey Manheim Kansas City Manheim Missouri Manheim Gateway St. Louis Virginia Chief Operating Officer, Enterprise Solutions Mark J. Brunn Vice President, Operations, Florida James T. McKnight Anthony J. Giurato, Jr. Kelly G. Conger M. Gregory Gehman President, Enterprise Solutions and Online Solutions Vice President, Operations, Midwest Vice President, Export Services Timothy J. Janego President, Dent Wizard and Group Vice President, Frontline Services Nick H. Peluso Vice President, Operations, Southeast Katherine K. Decker Senior Vice President, Account Management and Customer Strategies Michael L. McKinney Chief Executive Officer, Manheim Australia Senior Vice President and Chief Financial Officer Joseph J. Cadigan, Jr. Vice President, Operations, West Kyle E. Ohman Vice President, Operations, Northeast Vice President and General Manager, MAFS Manheim Atlanta Manheim DRIVE Manheim Georgia Manheim Metro Atlanta Washington Nevada Manheim Seattle Manheim Las Vegas Manheim Nevada Wisconsin Manheim New Jersey Manheim NY Metro Skyline New Mexico Manheim New Mexico New York Manheim Albany Manheim New York Illinois North Carolina Manheim Arena Illinois Manheim Chicago Manheim Metro Chicago Manheim Metro St. Louis Indiana Manheim Fort Wayne Manheim Indianapolis Manheim Louisville Manheim Kentucky Manheim Lafayette Manheim New Orleans Manheim Fredericksburg Manheim Harrisonburg Manheim Virginia Manheim Omaha Manheim Hawaii Hawaii Louisiana Vice President, Operations, Canada Joseph Luppino ASIA China Manheim Utah David M. Berkstresser Patrick J. Brennan Borusan Manheim Birmingham Bristol Colchester Colchester – Commercial Coventry Gloucester Haydock Haydock – Commercial Knottingley Leeds Leeds – Commercial Leicester Manchester Mansfield Middlesbrough Northampton Rotherham Saltash Washington Washington – Commercial Wimbledon Dent Wizard – Tamworth e-GoodManners – Leeds KAH Systems – Newcastle upon Tyne Portfolio – U.K. Vehicle Remarketing Solutions – Coventry Missouri Kentucky Susan L. Boehlke Turkey England Florida Chief Executive Officer, Manheim Europe Vice President, International Operations (Mexico) e-GoodManners Manheim Dallas Manheim Dallas-Fort Worth Manheim El Paso Manheim Fort Worth Manheim Houston Manheim Metro Dallas Manheim San Antonio Manheim Texas Hobby Utah New Jersey Manheim North Carolina Manheim Statesville Ohio Manheim Cincinnati Manheim Ohio Oklahoma Manheim Oklahoma City Oregon Manheim Portland Pennsylvania Manheim Central Penn Manheim Pennsylvania Manheim Philadelphia Manheim Pittsburgh Spain Manheim Glasgow Texas Manheim Mississippi Nebraska Manheim Benelux Portfolio – Belgium Manheim Directo – Madrid Portfolio Spain Mississippi Georgia Executive Management Manheim Minneapolis Manheim Northstar Minnesota Scotland Cyprus Manheim Colorado Manheim Denver Manheim Central Florida Manheim Daytona Beach Manheim Fort Lauderdale Manheim Fort Myers Manheim Imperial Florida Manheim Lakeland Manheim Orlando Manheim Palm Beach Manheim Pensacola Manheim St. Pete Manheim Tampa Certified to Serve – These Manheim employees are ready to deliver an entirely new level of experience to customers thanks to Manheim’s new Customer Experience Certification program. An online course, certification pre-work and three days of training earn employees the designation of Service Champion. The program was developed, in part, based on requests from employee surveys. Minnesota Tennessee EUROPE Belgium Manheim Milwaukee Puerto Rico Caribbean Subasta de Auto Service Centers Manheim Austin Manheim Baton Rouge Manheim Birmingham Manheim Boise Manheim Buffalo Manheim Connecticut Manheim Doral Manheim Jacksonville Manheim Little Rock Manheim Montana Manheim Ocala Manheim Sioux Falls Manheim Wilmington CANADA Manheim Halifax Manheim Moncton Manheim Montreal Manheim Oshawa Manheim Toronto France Manheim France – Blagnac Manheim Beijing Manheim Shanghai Manheim Shenzhen Thailand Manheim Asia Pacific – Bangkok AUSTRALIA Adelaide Brisbane Canberra Hobart Launceston Melbourne Newcastle Perth Sydney – Moorebank Sydney – Smithfield Townsville Portfolio Australia – Melbourne New Zealand Auckland Christchurch AFRICA e-GoodManners South Africa – Kenridge Germany Manheim Germany – Frechen Portfolio – Germany Greece e-GoodManners – Athens Italy Manheim Italy – Torino Netherlands Online Remarketing Portugal Lisbon Porto Vice President, International Operations Scott Levy William G. Disharoon Vice President, Frontline Services Pam Mabry-Cadigan Vice President, Manheim Inspections 38 COX ENTERPRISES 2007 ANNUAL REPORT COX ENTERPRISES 2007 ANNUAL REPORT 39 Management Jay R. Smith Cathy Coffey Caroline C. John Mark P. Mansfield President Vice President, Advertising Group Vice President, Community Newspapers Vice President, Marketing President, Cox Newsprint Supply, Inc. Leon Levitt Vice President, Operations Brian G. Cooper Executive Vice President Melody P. Darch Christopher D. Caneles Vice President and Chief Financial Officer Vice President and Chief Information Officer Susan S. Davidson Vice President, Digital Media Vice President, Human Resources Stan Richmond Al Smith Vice President, Circulation Publishers Gary Borders Tom Giuffrida Phil Latham Alex Taylor Longview News-Journal (TX) The Palm Beach Post (FL) The Marshall News Messenger (TX) Tim Hobbs John C. Mellott The Daily Sentinel (Grand Junction, CO) The Lufkin Daily News (TX) The Atlanta Journal-Constitution (GA) Ann Hoffman Joyce Reingold The Daily Advance (Elizabeth City, NC) Palm Beach Daily News (FL) D. Jordan Whichard III Michael A. Laosa Steve Sidlo Springfield News-Sun (OH) The Daily Reflector (Greenville, NC) Edwina Blackwell Clark JournalNews (Hamilton, OH) The Middletown Journal (OH) Karla DeLuca The Daily Sentinel (Nacogdoches, TX) Douglas E. Franklin Austin American-Statesman (TX) Michael C. Vivio Waco Tribune-Herald (TX) Raye P. Woodin III Rocky Mount Telegram (NC) Dayton Daily News (OH) Related Operations Valpak Saving Source Direct Washington, D.C. News Bureau COXnet Largo, FL William B. Disbrow, President & CEO (formerly PAGAS Mailing Services) Tarboro, NC Jeffrey J. Means, CEO Andrew N. Alexander, Bureau Chief Atlanta, GA John Reetz, General Manager Our Best Shot – For the second year in a row, Jay Janner of the Austin American-Statesman won both Feature Photography and Photographer of the Year in the Best of Cox awards, an annual competition that honors journalistic excellence among Cox Newspapers. Janner’s portfolio, which included images of Austin landmarks, spanned news, sports, fashion and portraiture subjects. Circulation Dailies circulationDaily Sunday Non-Dailies Circulation The Atlanta Journal-Constitution (GA) Austin American-Statesman (TX) The Palm Beach Post (FL) Dayton Daily News (OH) Waco Tribune-Herald (TX) The Daily Sentinel (Grand Junction, CO) Longview News-Journal (TX) Springfield News-Sun (OH) The Daily Reflector (Greenville, NC) JournalNews (Hamilton, OH) The Middletown Journal (OH) Rocky Mount Telegram (NC) The Lufkin Daily News (TX) The Daily Advance (Elizabeth City, NC) The Daily Sentinel (Nacogdoches, TX) The Marshall News Messenger (TX) Palm Beach Daily News (FL) 331,954 166,458 157,800 117,587 37,455 30,913 27,504 25,145 21,662 19,647 17,662 14,292 12,335 10,748 8,072 6,757 5,755 492,482 206,700 188,315 161,086 44,016 33,653 32,220 31,799 22,639 22,079 18,990 16,391 14,546 10,230 9,045 6,938 6,218 1,011,746 1,317,347 Florida Pennysaver (West Palm Beach, FL) Mundo Hispánico (Atlanta, GA, Spanish language) Pulse-Journal (Mason, OH) La Palma (West Palm Beach, FL, Spanish language) ¡ahora sí! (Austin, TX, Spanish language) The Nickel-Grand Junction (Grand Junction, CO) Fairfield Echo (OH) The Western Star (Lebanon, OH) Duplin Times (Kenansville, NC) North Lake Travis Log (Lago Vista, TX) Round Rock Leader (TX) Bastrop Advertiser (TX) The Enterprise (Williamston, NC) The Chowan Herald (Edenton, NC) Beaufort-Hyde News (Bellhaven, NC) Lake Travis View (Austin, TX) Bertie Ledger-Advance (Windsor, NC) Oxford Press (OH) Westlake Picayune (Westlake Hills, TX) The Smithville Times (TX) Standard Laconic (Snow Hill, NC) Perquimans Weekly (Elizabeth City, NC) Farmville Enterprise (NC) Pflugerville Pflag (TX) Times-Leader (Ayden-Grifton, NC) Weekly Herald (Robersonville, NC) 457,404 60,730 59,219 34,198 25,602 25,365 20,883 16,287 13,090 5,437 5,435 5,010 4,653 4,368 3,991 3,304 3,240 3,100 2,623 2,519 2,303 1,776 1,623 1,566 1,507 831 Total 766,064 Total Source: Internal Annual Average Circulation as of December 31, 2007 Source: Internal Annual Average Circulation as of December 31, 2007 40 COX ENTERPRISES 2007 ANNUAL REPORT COX ENTERPRISES 2007 ANNUAL REPORT 41 Cox AutoTrader/AutoMart Officers Joe George Bob Hadley Phil Oakley James Menard President Vice President, Technology Vice President, Business Operations Ian MacDonald Michelle Anderson Mike Wynn Vice President, Sales AutoMart (East) Senior Vice President, Sales Vice President, Human Resources Bill Dorsey Skip Dowd Vice President, AutoTrader Publishing (East) Vice President, Chief Financial Officer Vice President, Internet Paul Edmonds Scott Miller Vice President, AutoTrader Publishing (West) Vice President, Controller Jeff Moore Vice President, Sales AutoMart (West) Market Locations AUTOTRADER.COM MARKETS WITH FIELD SALES REPRESENTATIVES Alabama Birmingham Mobile Arizona Phoenix Sierra Vista Tucson Arkansas Little Rock Pine Bluff California Skip Dowd (far left, back row) and Roger Hilterbrandt (back row, 5th from left) collaborated during an Outward Bound experience as part of the Cox Executive Leadership Program. Wilderness Trails Lead to Sales – When Roger Hilterbrandt of AutoTrader.com and Skip Dowd of AutoMart.com found themselves hiking together up a mountain trail last year as part of the Cox Executive Leadership Program (ELP), it was only natural that the two would discuss their respective businesses. After all, one goal of the program is to bring executives together, often in different environments, to foster new thinking and ideas. By the time night fell, the two had hatched a plan to combine the sales efforts of AutoTrader.com and AutoMercado.com to achieve better synergy. Both agree that the idea would have taken months to hash out in conference rooms, but a good conversation on a hiking trail proved to be the perfect setting for a sales collaboration. As a result of their collaboration, AutoMercado.com is expecting a 300 percent increase in sales in 2008 and has built the first and biggest Spanish-language automotive classified brand. Cox Auto Trader Officers Fresno Los Angeles Modesto Monterey Oakland Sacramento Salinas San Diego San Francisco San Jose Stockton Visalia Colorado Colorado Springs Denver Pueblo Connecticut Sanford Schwartz Buddy Solomon Dick Huguley Deborah Thomas President Vice President, Chief Financial Officer Vice President, Operations Vice President, Human Resources Hartford New Haven Delaware Wilmington AutoTrader.com Officers Florida Chip Perry Jim Franchi Mark Sohl President, Chief Executive Officer Vice President, Product Management Vice President, Business Systems Group Bill Templeton Mance Irvin Executive Vice President of Operations Vice President, Enterprise Program Management Craig Hunt Roger Hilterbrandt Senior Vice President of Sales Vice President, Sales (Central Division) Rebecca Watson Dan Crowe Bob Landers Chief Information Officer Vice President, Sales (West Division) Vice President, Organizational Services and Community Relations Dave Amundsen Matt McKenna Vice President, Finance Vice President, National Account Sales Jeff Catron Alan Smith Vice President, Sales (East Division) Vice President, Customer Operations 42 COX ENTERPRISES 2007 ANNUAL REPORT Sylvia Taylor Vice President, Human Resources Scott Whiteside Vice President and General Manager, Private Party Advertising Clark Wood Vice President, Marketing Daytona Beach Ft. Lauderdale Ft. Myers Jacksonville Melbourne Miami Naples Orlando Palm Beach Pensacola Sarasota St. Petersburg Tallahassee Tampa Georgia Maine New York South Carolina Wyoming Maryland South Carolina Atlanta Brunswick Savannah Thomasville Auburn Bangor Portland Baltimore COX AUTOTRADER/ AUTOMART LOCATIONS Massachusetts Baltimore Charleston Columbia Florence Greenville Myrtle Beach Spartanburg Cheyenne Hawaii Albany Binghamton Buffalo Elmira New York Rochester Schenectady Syracuse Troy Utica Watertown Charleston Columbia Greenville Myrtle Beach/ Wilmington (NC) South Dakota Birmingham Honolulu Idaho Boise Idaho Falls Illinois Bloomington Champaign Chicago Decatur Harrisburg Moline Mount Vernon Peoria Quincy Rockford Rock Island Springfield Indiana Elkhart Evansville Ft. Wayne Indianapolis South Bend Iowa Ames Cedar Rapids Davenport Des Moines Dubuque Keokuk Mason City Ottumwa Sioux City Waterloo Kansas Hutchinson Kansas City Wichita Maryland Massachusetts Boston New Bedford Michigan Alpena Battle Creek Bay City Cadillac Detroit Flint Grand Rapids Kalamazoo Lansing Saginaw Traverse City Minnesota Austin Duluth Mankato Minneapolis Rochester St. Paul Mississippi Jackson Missouri Cape Girardeau Columbia Hannibal Jefferson City Kirksville Springfield St. Joseph St. Louis Montana North Carolina Asheville Charlotte Durham Greensboro High Point Raleigh Winston-Salem North Dakota Bismarck Dickinson Fargo Minot Valley City Oklahoma Oklahoma City Tulsa Oregon Eugene Portland Roseburg Nebraska Las Vegas New Orleans New Mexico Rhode Island Albuquerque Santa Fe Austin Corpus Christi Dallas Fort Worth Houston Lubbock San Antonio Tyler Utah Virginia Pennsylvania Nevada Texas Cincinnati Cleveland Columbus Dayton Lima Toledo Youngstown Louisiana Lexington Louisville Paducah Chattanooga Memphis Nashville Salt Lake City Billings Hastings Kearney Lincoln Omaha Tennessee Ohio Harrisburg Lancaster Lebanon Philadelphia Pittsburgh Scranton Wilkes-Barre York Kentucky Mitchell Rapid City Sioux Falls Providence Harrisonburg Lynchburg Newport News Norfolk Petersburg Portsmouth Richmond Roanoke Washington Seattle Spokane Tacoma Washington, D.C. West Virginia Charleston Huntington Wisconsin Appleton Eau Claire Green Bay LaCrosse Madison Milwaukee Rhinelander Superior Wausau Alabama Arizona Phoenix Tucson California Fresno Los Angeles Ontario Orange County Sacramento San Diego San Francisco Santa Fe Springs Torrance Van Nuys Colorado Denver Connecticut Hartford Florida Clearwater Ft. Lauderdale Ft. Myers Hollywood Jacksonville Miami Orlando Pensacola Tampa West Palm Beach Georgia Atlanta Illinois Chicago Rockford Indiana Indianapolis Iowa Des Moines Kansas Kansas City Kentucky Boston Michigan Detroit Flint Grand Rapids Minnesota Minneapolis/ St. Paul Missouri St. Louis Nevada Las Vegas New Jersey Mahwah New Mexico Albuquerque New York Buffalo Long Island Rochester Syracuse North Carolina Charlotte Greensboro Raleigh Winston-Salem South Dakota Sioux Falls Tennessee Memphis Nashville Texas Austin Dallas Houston Rio Grande Valley San Antonio Utah Salt Lake City Virginia Norfolk Richmond Roanoke Washington Seattle North Puget Sound Puget Sound Washington, D.C. Wisconsin Milwaukee Ohio Canton Cincinnati Cleveland Columbus Dayton Toledo Youngstown Oklahoma Oklahoma City Tulsa Oregon Eugene Portland Pennsylvania Philadelphia Pittsburgh Rhode Island Providence Lexington Louisville COX ENTERPRISES 2007 ANNUAL REPORT 43 Broadcast Stations BROADCAST STATIONMARKETMARKET SIZE* KTVU-TV San Francisco/Oakland KICU-TV San Jose/San Francisco WSB-TVAtlanta KIRO-TV Seattle WFTV-TV Orlando WRDQ-TV Orlando WPXI-TV** Pittsburgh WSOC-TV*** Charlotte WAXN-TV Charlotte WHIO-TV*** Dayton KFOX-TV El Paso WJAC-TV** Johnstown KRXI-TVReno KAME-TVReno WTOV-TV** Steubenville AFFILIATIONMANAGEMENT 6FOX Tim McVay 6 IND Tom Raponi 8ABC Bill Hoffman 14 CBS Eric Lerner 19ABC Shawn Bartelt 19 IND Shawn Bartelt 22NBCRay Carter 25ABC Joe Pomilla 25 IND Joe Pomilla 62 CBS Harry Delaney 98FOX John Witte 99NBC Dick Schrott 110FOX Steve Cummings 110 UPN Steve Cummings 159NBC Tim McCoy CABLE CHANNEL PCNC Pittsburgh 22 INDRay Carter *Market size by population according to Nielsen. **WeatherPlus channels, featuring national and local weather coverage through a partnership with NBC. ***AccuWeather channels, featuring national and local weather coverage. Related Operations Locations FIRMLOCATION FIRMLOCATION FIRMLOCATION California Massachusetts North Carolina TeleRep TeleRep HRP HRP MMT MMT The End of an Extraordinary Era – May 2008 marks the retirement of KTVU-TV anchor Dennis Richmond, who has spent 40 years – nearly all of them on air – at the Oakland/San Francisco station. His tenure has made him a local news fixture for Bay Area viewers and a role model for broadcast journalistic excellence. Los Angeles San Francisco Los Angeles San Francisco Los Angeles San Francisco Florida TeleRep HRP MMT Miami Tampa Tampa Georgia Management Andrew S. Fisher Mary H. Robert Sandhi Kozsuch Derek Robinson President Vice President, Human Resources Director, Broadband and Digital Manager, Business Development Bruce R. Baker Jane Williams Angie Amon Heidi Wiedenbauer Executive Vice President Vice President, Sales Manager, Research Services Sterling E. Davis John D. Tramontanis Lorraine Kenny Vice President, Engineering Controller Manager, TV Automotive/Marketing Bureau Chief Washington News Bureau Washington, D.C. Amelia L. DiVenere David F. Grayson Vice President, Finance and Administration Director, Internet Sales TeleRepAtlanta HRPAtlanta MMTAtlanta Illinois TeleRep HRP MMT Chicago Chicago Chicago TeleRep HRP Boston Boston Michigan TeleRep HRP MMT Detroit Detroit Detroit Minnesota TeleRep HRP MMT Minneapolis Minneapolis Minneapolis Missouri TeleRep HRP St. Louis St. Louis New York MMT Charlotte Pennsylvania TeleRep MMT Philadelphia Philadelphia Texas TeleRep HRP MMT Dallas Dallas Dallas Washington, D.C. TeleRep HRP MMT Washington, D.C. Washington, D.C. Washington, D.C. Washington TeleRep Seattle TeleRepNew York HRPNew York MMTNew York Related Operations TeleRep Harrington, Righter & Parsons (HRP) MMT Sales Cox Cross Media New York James J. Monahan, President New York Murray L. Berkowitz, President New York Larry Strumwasser, President New York Steve Shaw, Senior Vice President 44 COX ENTERPRISES 2007 ANNUAL REPORT COX ENTERPRISES 2007 ANNUAL REPORT 45 Radio Stations RANK IN TARGET STATIONDEMOGRAPHIC MARKET(1) CALL LETTERS FORMATGROUP RANK IN TARGET STATIONDEMOGRAPHIC MARKET(1) CALL LETTERS FORMATGROUP Atlanta Orlando WSB-AMNews/Talk WALR-FM Urban Adult Contemporary WSB-FMAdult Contemporary WBTS-FMRhythmic Contemporary Hit Radio WSRV-FM Classic Hits 2 3 3 4 4 WNGC-FM(2) Country WGMG-FM(2)Adult Contemporary WPUP-FM(2)Rock Sports Radio WRFC-AM(2) WGAU-AM(2)News/Talk Country WXKT-FM(2)(3) – – – – – – Richmond Athens, GA* Birmingham WBHJ-FM Hip Hop WBHK-FMR&B/Soul WZZK-FM Country WBPT-FM Classic Hits WAGG-AM Gospel Spanish WPSB-AM(4) WNCB-FM New Country 1 1 2 5 10 – 13 WHKO-FM Country WZLR-FM Classic Hits WHIO-AMNews/Talk WHIO-FM(5)News/Talk 2 11 8 – WJMZ-FM Urban WHZT-FMRhythmic Contemporary Hit Radio 1 2 KRTR-FMAdult Contemporary KCCN-FM Hawaiian Contemporary Hit Radio KPHW-FMRhythmic Contemporary Hit Radio KINE-FM Hawaiian Adult Contemporary KRTR-AM Soft Adult Contemporary KKNE-AM Traditional Hawaiian 2 4 3 5 29 23 KHTC-FM KKBQ-FM KTHT-FM KHPT-FM 5 10 19 12 Dayton Greenville Royal Marshall, WSB-AM (left) and Neal Boortz, WSB-AM (right) with patient. We Care On-Air – In the last seven years, WSB-AM’s Care-A-Thon has raised $5.75 million for the Aflac Cancer Center at Children’s Healthcare of Atlanta to help cure children’s cancer. Senior Management Robert F. Neil Neil O. Johnston Kimberly A. Guthrie Gregg A. Lindahl Regional Vice President President and Chief Executive Officer Vice President and Chief Financial Officer Marc W. Morgan Richard A. Reis Executive Vice President and Chief Operating Officer Group Vice President Caroline J. Devine Regional Vice President (Retired effective 12/31/07) Jarrett A. O’Connor Regional Vice President Robert B. Reed Regional Vice President Vice President, Interactive and New Technologies Roxann L. Miller Vice President, Research Faith E. Perkins Vice President, Human Resources Honolulu Houston Classic Hits Country Country Legends 80s Jacksonville WFYV-FM Classic Rock WOKV-AMNews/Talk WOKV-FM(6)News/Talk WAPE-FM Contemporary Hit Radio WMXQ-FM 80s WJGL-FM Classic Hits 6 5 – 3 13 3 WBLI-FM WBAB-FM WHFM-FM(7) 2 1 – Long Island Contemporary Hit Radio Mainstream Rock Mainstream Rock Louisville WVEZ-FMAdult Contemporary WSFR-FM Classic Rock WRKA-FM Oldies WPTI-FM New Country 2 5 9 7 WHQT-FM Urban Adult Contemporary WEDR-FM Urban Contemporary WFLC-FM Hot Adult Contemporary WHDR-FMActive Rock 2 2 4 3 Miami * Pending acquisition 46 COX ENTERPRISES 2007 ANNUAL REPORT WCFB-FM Urban Adult Contemporary WPYO-FMRhythmic Contemporary Hit Radio WDBO-AMNews/Talk WHTQ-FM Classic Rock WWKA-FM Country WMMO-FMRock Adult Contemporary 1 1 10 3 7 2 WKLR-FM Classic Rock WKHK-FM Country WMXB-FMAdult Contemporary WDYL-FMNew Rock Alternative 5 5 10 6 KONO-FM Greatest Hits Greatest Hits KONO-AM(8) KISS-FMActive Rock KSMG-FM Hot Adult Contemporary KCYY-FM Country KPWT-FMRhythmic Contemporary Hit Radio KKYX-AM Country Legends 1 – 1 9 4 7 22 San Antonio Southern Connecticut Bridgeport/ Fairfield County WEZN-FMAdult Contemporary 2 New Haven 1 5 WPLR-FM WYBC-FM (9) Classic Rock Urban Adult Contemporary Stamford-Norwalk WCTZ-FMAdult Contemporary WFOX-FM Classic Rock WSTC-AMNews/Talk WNLK-AM(10)News/Talk 9 2 22 – Tampa WWRM-FMAdult Contemporary WDUV-FM Soft Adult Contemporary WXGL-FM Classic Hits WSUN-FMAlternative Rock WPOI-FM 80s WHPT-FM Classic Rock 3 1 3 3 8 8 KKCM-FM Christian Contemporary KWEN-FM Country KJSR-FM Classic Rock KRMG-AMNews/Talk KRAV-FMAdult Contemporary 8 2 5 7 2 Tulsa Source: Arbitron Market Reports four-book average for Winter 2007, Spring 2007, Summer 2007 and Fall 2007. (1) Metropolitan market served; city of license may differ. (2) Market not ranked by Arbitron. (3) WXKT-FM is currently located in Washington, Georgia, and is in the process of relocation to the Athens market. (4) The station format was recently changed; therefore, the station’s audience share and rank information for 2007 are not meaningful. (5) Audience share and audience rank information for WHIO-AM and WHIO-FM are combined because the stations are simulcast. (6) Audience share and audience rank information for WOKV-AM and WOKV-FM are combined because the stations are simulcast. (7) Audience share and audience rank information for WBAB-FM and WHFM-FM are combined because the stations are simulcast. (8) Audience share and audience rank information for KONO-FM and KONO-AM are combined because the stations are simulcast. (9) Station operated by Cox Radio under a joint sales agreement (JSA). (10) Audience share and audience rank information for WSTC-AM and WNLK-AM are combined because the stations are simulcast. COX ENTERPRISES 2007 ANNUAL REPORT 47 Board of Directors Two Great Legacies Barbara Cox Anthony Jim Robbins As the daughter of Governor James M. Cox and longtime member of On paper, he was a member of the Cox Enterprises Board of Directors the Cox Enterprises Board of Directors, Barbara Cox Anthony spent and the retired CEO of Cox Communications, the business he led for most of her life championing the growth of the company that her two decades. Those titles, however, do not even begin to describe father founded and her son continues to lead today. Mrs. Anthony the legacy of Jim Robbins as a company leader, industry pioneer and, was a staunch proponent of the Cox tradition of reinvesting in our especially, friend and mentor to many of us. Under his watch, Cox businesses to ensure operational strength and sustained growth. Communications grew from a stand-alone cable TV company into the She was known for her inherent business acumen, sharp sense third largest cable television provider and one of the largest broadband of humor, strong competitive instinct and a generous, but quiet, communications companies overall in the U.S. Even more impressive, philanthropic sense of responsibility – qualities that defined her he made Cox synonymous with exceptional customer service and and that, in many respects, define the company that we are today. community commitment. Robbins was known for always doing the right thing, and always doing it well. Barbara Cox Anthony at age 2 (right) with her father, Governor James Cox, and sister, Anne, age 5. Robbins was a pioneer of the “bundle” – combining phone, video and Internet service from one provider. Left to right (seated): James C. Kennedy, Robert C. O’Leary, Jimmy W. Hayes, Thomas O. Cordy, Anne Cox Chambers Left to right (standing): S. Taylor Glover, Janet Morrison Clarke, Arthur M. Blank, David E. Easterly, Dennis Berry Dennis Berry Vice Chairman, Cox Enterprises, Inc. David E. Easterly Retired Vice Chairman, Cox Enterprises, Inc. Arthur M. Blank Co-Founder, The Home Depot, Inc. Owner and Chief Executive Officer, Atlanta Falcons and Georgia Force S. Taylor Glover President and Chief Executive Officer, Turner Enterprises, Inc. Anne Cox Chambers Chairman, Atlanta Newspapers Janet Morrison Clarke President, Clarke Littlefield, LLC Thomas O. Cordy President and Chief Executive Officer, Global Nutritionals, Inc. 48 COX ENTERPRISES 2007 ANNUAL REPORT Jimmy W. Hayes President and Chief Operating Officer, Cox Enterprises, Inc. James C. Kennedy Chairman and Chief Executive Officer, Cox Enterprises, Inc. Robert C. O’Leary Executive Vice President and Chief Financial Officer, Cox Enterprises, Inc. Mrs. Anthony (right) with her sister, Anne Cox Chambers. Both served on the Board of Directors of Cox Enterprises since its incorporation. Richard L. Braunstein In Appreciation… Longtime friend and counselor to Cox Enterprises Richard L. Braunstein stepped down from our Board of Directors at the end of 2007. As a senior partner at Dow Lohnes, Dick has been Cox’s legal advisor on corporate and tax matters for five decades. In addition to his recent Board service, he has helped guide the company through an unprecedented period of growth and success. We thank him for his longstanding guidance and friendship and wish him the best in retirement. Known for his quick wit and personal warmth, Robbins was beloved by employees. A true competitor, Mrs. Anthony loved sports and cars from an early age. Under Robbins, Cox Communications established a second-to-none reputation for excellent customer service. Mrs. Anthony enjoyed spending time in Australia. She owned and operated two large commercial ranches there covering 30,000 acres with 2,500 cows, sheep and purebred quarter horses. COX ENTERPRISES 2007 ANNUAL REPORT 49 Cox Enterprises Management James C. Kennedy Chairman and Chief Executive Officer Dennis Berry Vice Chairman Jimmy W. Hayes President and Chief Operating Officer Robert C. O’Leary Executive Vice President and Chief Financial Officer Marybeth H. Leamer Senior Vice President, Human Resources J. Lacey Lewis Vice President, Business Development Michael J. Mannheimer Vice President, Supply Chain Services Chief Procurement Officer Preston B. Barnett Vice President and General Tax Counsel Robert R. Brand Vice President, Corporate Security Susan W. Coker Vice President, Treasurer John M. Dyer Executive Vice President, Finance Maria Friedman Vice President, Corporate Tax Timothy W. Hughes Executive Vice President, Administration David J. Head Vice President, Controller Andrew A. Merdek Vice President, Legal Affairs, General Counsel and Corporate Secretary Gregory B. Morrison Vice President and Chief Information Officer Robert N. Redella Vice President, Development Deborah E. Ruth Vice President, Marketing John G. Boyette Senior Vice President, Investments and Administration Roberto I. Jimenez Vice President, Corporate Communications and Public Affairs Richard J. Jacobson Senior Vice President, Finance Joab M. Lesesne, III Vice President, Government Affairs Alexander R. Stickney Vice President, Audit Services Alexandra M. Wilson Vice President, Public Policy and Regulatory Affairs Location Cox Enterprises, Inc. 6205 Peachtree Dunwoody Road Atlanta, GA 30328 (678) 645-0000 www.coxenterprises.com Left to right: John Dyer and Bob O’Leary. Cox Enterprises Other Operations Clarendon Farms, Inc. Burton, SC Ted R. Moring, Farm Manager Hualalai Land Corp. Kailua-Kona, HI Franklin T. Boteilho, Ranch Manager Passing the Baton Cox Media HotLine 1-877-4-COXNEWS (1-877-426-9639) 30% Cert no. SW-COC-1436 Printed on FSC Paper. The Forest Stewardship Council (FSC) promotes environmentally appropriate, socially beneficial, and economically viable management of the world’s forests. We want to hear from you! We hope this year’s annual report helped you learn more about Cox and the many ways our employees and companies collaborate. Let us know what you think. Share your feedback on the 2007 annual report by taking a quick survey at www.coxenterprises.com/annualreportfeedback or by sending an email to annualreport@coxinc.com. After 25 years of distinguished leadership with Cox Enterprises and Cox Communications, Bob O’Leary has announced his decision to retire this summer as Executive Vice President and Chief Financial Officer of Cox Enterprises. He will continue to serve on the Cox Enterprises Board of Directors. “Bob O’Leary has been a great business leader, and we appreciate everything he’s done for us in his 25 years with the company,” says Jim Kennedy, Chairman and Chief Executive Officer at Cox Enterprises. “We look forward to his continued involvement as a member of our Board.” Succeeding him will be John Dyer, who has been named Executive Vice President, Finance at Cox Enterprises. Dyer will work closely with O’Leary and the senior leadership team in the coming months, spending time with each of the operating businesses. In summer 2008, Dyer will be named Executive Vice President and Chief Financial Officer with full responsibility for treasury, financial reporting and control, tax, audit, information technology, risk management, real estate and business development functions. Dyer joined Cox Enterprises in 1977 as internal auditor and held financial and operational positions at Cox Communications. He left Cox in 1990, returning in 1995 as Vice President of financial planning and analysis when Cox acquired Times Mirror Cable. “John has a terrific background in both finance and operations and will play a key role as we make strategic decisions to continue Cox Enterprises’ long-established record of growth and quality,” says Jimmy Hayes, President Originally printed in InSide Cox magazine 50 COX ENTERPRISES 2007 ANNUAL REPORT © Copyright 2008 Cox Enterprises, Inc. 6205 peachtree dunwoody road at l a n ta , g a 3 0 3 2 8 678-645-0000 w w w. c o x e n t e r p r i s e s . c o m 2 0 0 7 An n u a l R e p o rt One good thing leads to another and another