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CXE-009 Cover.cgla r1
CXE-009 Cover.cgla r1 3/25/02 12:47 PM Page b 2001 ANNUAL REPORT Strength Matters James M. Cox, our founder, knew the validity of this simple truth 104 years ago. It was his strength of character that set in motion the expansive organization we know as Cox Enterprises – a company that continues to believe that exceptional employees build exceptional businesses, even in challenging times. BROADBAND AUTO AUCTIONS NEWSPAPERS TELEVISION RADIO INTERACTIVE CXE-009 Cover.cgla r1 3/25/02 12:47 PM Page c C O X E N T E R P R I S E S is one of the nation’s leading media companies and operators of automobile auctions. We are a top 10 national player, based on revenues, in every major business category where we compete. At-a- Glance COX ENTERPRISES COX EXECUTIVE 2001 REVENUES EMPLOYEES BY THE NUMBERS C O M M U N I C AT I O N S MANHEIM AUCTIONS Cox Communications is one of the largest broadband communications companies in the U.S., delivering video, voice and data services to residential and commercial customers. Cox Communications is a publicly traded company (NYSE: COX), of which Cox Enterprises owns approximately 65%. Manheim is the highest-volume operator of wholesale vehicle auctions in the world, and provides paintless dent removal, inspection, reconditioning and floor-plan financing services to dealers and other commercial customers. James O. Robbins Dean H. Eisner President & Chief Executive Officer President & Chief Executive Officer $4.07 $2.26 billion billion 20,700 32,500 Cox Communications provides Manheim Auctions operates 6.2 million customers in 23 states 115 services to auctions worldwide and processed 9.5 million vehicles in North America HIGHLIGHTS OF THE YEAR • Increased year-over-year pro forma revenues by 14% and pro-forma operating cash flow by 12%. • In North America, sold more than five million used vehicles – a 23% increase over 2000 – with a total value of $54 billion. • Added 1.15 million subscriptions – or revenue generating units (RGUs) – of advanced broadband services: digital cable, telephone and high-speed Internet. • Exceeded $100 million in revenues from international markets, and increased the number of vehicles sold to more than 400,000. • More than one million customers now purchase at least two Cox services. • Continued to lead the broadband industry in pioneering and providing cable telephone service, becoming the 12th largest phone company in the United States. • Won numerous quality and performance awards from clients such as Ford, General Motors, Daimler-Chrysler, Enterprise Rent-A-Car, Bank of America, BankOne, Arcadia Financial, and others. • Through Manheim Online, sold 134,000 vehicles worth $2 billion. • Built a national Internet Protocol (IP) network, over which Cox High-Speed Internet service was launched in early 2002 and which will provide capacity and power for deployment of new services in the future. • Deployed more than 300 dealer-dedicated sales reps to auctions to intensify dealer support. • Cox Business Services added 20,000 new commercial customers and increased revenues 48% over 2000. • Created the Manheim Used Vehicle Value Index, a measure of pricing trends that is quickly becoming the industry standard. • Established a formal management development focus and best practices program. 2001 REVENUES: $ 8.7 Billion 10-YEAR ANNUAL GROWTH RATE: 14% EMPLOYEES: 76,000 COX N E W S PA P E R S Cox Newspapers is one of the nation’s 10 largest newspaper publishing enterprises, with 17 daily papers and 30 nondailies. Cox Newspapers also operates a direct mail business, distributes classified advertising publications, creates customized newsletters and owns one-third of a newsprint manufacturing business. COX TELEVISION Cox Television operates both networkaffiliated and independent television stations across the country. In addition to its over-the-air broadcasting entities, Cox Television manages a full-service research firm and three television advertising sales rep firms, including TeleRep, which together are number one in this industry segment. COX RADIO Cox Radio is the third largest radio broadcasting company in the United States in terms of net revenues and the largest pure-play radio station operator in the country. The company operates, acquires and develops radio stations that advance its clustering strategy, primarily in the Sun Belt. Cox Radio is a publicly traded company (NYSE: CXR), of which Cox Enterprises owns approximately 62%. Jay R. Smith Andrew S. Fisher Robert F. Neil President President President & Chief Executive Officer $1.35 billion $617 million $395 million 15,300 2,900 2,300 Cox Newspapers produces Cox Television operates Cox Radio operates 17 15 81 daily newspapers, with a Sunday circulation of 1.6 million stations in 11 markets reaching 30 million reaching viewers 18 markets 13 million stations in listeners each week • Merged the weekday afternoon Atlanta Journal with the morning Atlanta Constitution and held overall circulation. • Maintained number-one ratings in 90% of our local newscasts, and sales market leadership in nine of our 11 markets. • Grew revenue and cash flow despite the worst advertising decline in the radio industry in recent history. • Capitalized on clustering concept in North Carolina and Palm Beach, FL, markets, where multiple Cox publications are selling advertising in tandem. • WSB-TV continued its leadership: number one in every news time period in the highly competitive Atlanta market. • Increased ratings company-wide during 2001 with 12 of our 18 markets posting ratings share growth. • Advanced Seattle’s KIRO-TV news into second place during the early morning and late nighttime slots. • Ended 2001 with 75% of our stations ranked in the top-10 in their target demographic. • Reduced width of newsprint pages at The Atlanta Journal-Constitution, resulting in cost savings and a more reader-friendly design. • Further strengthened the leadership position of the Valpak direct mail coupon brand through packaging redesign and the establishment of common mailing dates among franchisees. • Continued to grow revenues for 50%owned Trader Publishing despite downturn in advertising economy, demonstrating the strength of classified advertising in multiple categories. • Centralized operations in the three-station Pittsburgh regional cluster, including successful joint-selling activity. • Attracted 56 new client stations to our advertising sales rep businesses totaling $290 million in annual billings. • Enhanced the content focus on all station Web sites to extend our local station brands, and grew Web user statistics dramatically. • Remain well-positioned for future growth with a healthy mix of start-up and developing stations. • Increased year-over-year non-traditional revenue 24%. • Launched Cox Radio Interactive and 76 Web sites to create value for listeners and advertisers online. • Raised more than $7 million in response to the September 11 attacks, with particularly strong fundraising in the Long Island, NY market. 1 A Message from Jim Kennedy Chairman and Chief Executive Officer of Cox Enterprises, Inc. During more than a century of our company’s existence, we five years. When we made that commitment back in 1992, Cox was a $2.5 billion business. With a little luck and a stronger economy, I believe we will be a $10 billion business by the end of 2002. Although business grew and operations were stable during the year, it required vigilance and fiscal responsibility. Fortunately, our media businesses helped us recognize the early warnings of a recession, and our newspaper, radio and television groups began making contingency plans more than a year ago. All of our businesses did a great job with expense control, but it’s important to note that we were able to continue making key investments that will help us grow. That’s one of the benefits of being privately owned: We have the flexibility to make those investment decisions and manage our business for the long term. have experienced good times and bad, peace and war, prosperity and recession; and the one constant has been that we have always continued to push forward and grow. This year, we faced an extraordinarily tough economy, made worse by the horrible events of September 11, and we were particularly hard hit in our businesses that are primarily supported by advertising. But this isn’t the first time Cox has faced an advertising recession, and it won’t be the last. We have managed through tough times before and gained valuable experience, and we will manage through tough times again. In spite of the business recession of 2001, our company was able to increase revenues from $7.8 to almost $8.7 billion, and we grew our income before depreciation and amortization by 7%. The diversified nature of our company, coupled with Many factors account for the resiliency of Cox. Great brands such as AutoTrader.com. Great traditions such as the Dayton Daily News. Manheim’s superior market position. Cox Communications’ exemplary customer service. Number one ratings throughout the Cox Radio and Cox Television station groups. The successful evolution of new Internet ventures. But a common thread running through this report is that we have been in business for a long time and we are good at what we do. We execute well. the investments we made in previous years, helped fuel this growth. Our managers can be very proud that they were able to operate in a tough environment with minimal disruptions to our operations. There have been no major staff reductions or dramatic restructurings that often go with difficult business conditions. And we are still on track to achieve our longer-term goal of doubling the size of our company every COX ENTERPRISES consolidated revenues (IN MILLIONS) $8,691.2 $7,823.6 $6,097.3 $4,791.9 $5,223.5 $4,289.0 $3,634.8 $2,314.5 1991 2 $2,486.3 $2,637.7 $2,844.4 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 (Pictured L to R) David Easterly: Vice Chairman Dennis Berry: President and Chief Operating Officer Jim Kennedy: Chairman and Chief Executive Officer bid. We put together a compelling offer that demonstrated confidence in our business and in the power of the broadband platform, as well as a willingness to act opportunistically and take risks that carry a reasonable expectation of return. Finally, and most importantly, strong execution is a function of good people. We are fortunate to have a powerful For example, our cable company continued to transform itself from a single-service provider into a multi-service one. Cox Communications has invested billions in technology upgrades and infrastructure, while continuing to generate cash flow growth that meets the expectations of Wall Street. But it’s not just about technology. It’s also about fulfilling customer needs, and I can’t think of a better example than Manheim Auctions. The depth and breadth of their customer relationships and their market knowledge are simply unmatched in the industry and could serve as a model for virtually any business. And the outstanding performance of our newspapers, radio and TV stations in covering the tragic events of September 11 will stand for years as one of the finest examples of superior execution in this company’s history. Taking calculated risks is also part of our history. Consider our Internet ventures. As we’ve done with every other major medium that has come along, Cox jumped in early. And we’ve made tremendous strides – AutoTrader.com, for example, is now the clear leader in the online automotive classifieds category. Still, Internet businesses are works in progress, given the relative infancy of the medium and the pace of changing technology and consumer tastes. As we learn more about how advertisers and viewers use online products and services, we’ll need to stay flexible enough to quickly make adjustments and stay ahead of the curve so that Cox can capitalize on all of the opportunities that are available to us. Similarly, Cox took one of the boldest risks in our history during this difficult year – making a bid for AT&T Broadband, which represents the largest base of broadband subscribers in the industry. Although we were not successful, I will never regret our decision to workforce of 76,000 employees who make smart decisions every day. I can’t predict when the economy will turn or if 2002 will be a markedly better year than 2001. But I do know this: We have the people and market position necessary to fully capitalize on a recovery and the opportunities that will come with it. Before closing, I must acknowledge the contributions of one who has personified all Cox strengths for more than 30 years – David Easterly, who retired at the end of 2001. From his years as a reporter at the Dayton Daily News to his vice chairmanship of Cox Enterprises, David has always been an effective leader for our company. He’s a smart operator with an inquisitive nature, always looking over the horizon for the next great opportunity – and usually finding it. We will miss David’s daily leadership, but he leaves us in good shape and in the very capable hands of Dennis Berry, our new president and chief operating officer. While most of us certainly do not have any desire to repeat a year like 2001, it is important that we not forget it, either. Achieving success under adverse conditions is how we grow smarter and ultimately stronger. We proved our competitive mettle last year, and we can do it again if necessary. I have never been more confident of our future. We have great people, in great businesses, operating in strong local markets, and there are exciting times ahead. My thanks to all Cox employees for an extraordinary effort this year and for doing your part to help us achieve our goals. Jim Kennedy Chairman and Chief Executive Officer Cox Enterprises, Inc. 3 COX CABLE DIGITAL TELEPHONE C O M M U N I C AT I O N S HIGH-SPEED INTERNET ACCESS ADVANCED DIGITAL SERVICES Strength Matters Executional Excellence In six short years, Cox Communications has transformed from a single-service cable television company into a multi-service broadband communications company. This transformation has required investment dollars, new marketing strategies, network upgrades, a unified IT platform, customer service enhancements and other operational initiatives necessary to support a multi-service offering. The dramatic transformation has been accomplished while maintaining strong operational and financial results. There has never been any question that this strategy was the right one to pursue. The challenge was in the execution. Knowing Cox Communications’ strength – the ability to get the job done – there also was no question that this challenge could be met and a new standard of excellence set. 4 ADVERTISING SALES COMMERCIAL VOICE, INTERNET AND VIDEO SERVICES THE POWER OF “BUNDLING” Cox Communications is the nation’s fifth largest cable television company today in terms of subscribers, but in the minds of many industry analysts, competitors and customers, the company is an industry leader on multiple fronts. Relative to company size, we have developed new broadband services more extensively than any other U.S. broadband company. After 40 years of offering a single service, cable television, over the past few years we have added high-speed Internet access, digital cable, and residential and commercial telecommunications services. The company is successfully “bundling” these offerings together to increase the penetration of each service. At the end of 2001, more than one million Cox customers enjoyed at least two Cox services in their homes. For them, bundling offers savings and the convenience of onestop shopping for communications and entertainment services. For us, bundling increases customers’ propensity to remain with Cox, yields operational efficiencies, and provides a competitive advantage over other providers that don’t deliver the full bundle of services. At the same time, we have invested heavily in upgrading our delivery network and are farther along than most of our industry peers – 90% of homes passed can receive high-speed Internet service from Cox, 93% can receive digital cable, and 33% have access to residential telephone. Advantage: Telephony Telephony, in particular, has distinguished the company from many of its peers. We are one of only two U.S. cable television companies widely offering competitive circuit-switched, facilities-based phone service today. Consider the numbers: •Cox is now the nation’s 12th largest phone company and 3rd largest in California. •We serve more than 453,000 residential customers who have 583,000 lines. •Over 17 million calls a day are processed over Cox’s switches. •Our telephone service is now available in nine markets covering 3.3 million homes. “The ultimate in customer service is a deep and sincere commitment to our customers that extends throughout our organization – not just in call centers like this one in Phoenix, but into every corner of the company. All employees are trained and empowered to deliver the exceptional customer care that sets Cox apart,” says Jim Robbins, President and CEO. Telephony not only represents a new revenue stream for Cox, but is also a critical component of our overall multi-service broadband strategy. With access to multiple services, customers are more likely to rely on Cox for two or more advanced services, which drives incremental penetration. Telephone customers also help to improve customer retention. Homes that subscribe to phone and at least one additional Cox service “churn,” or turnover, at a rate significantly lower than customers with one service. Marketing new services works hand-in-hand with customer care, for which Cox enjoys the best reputation in the industry. A heavy emphasis on training and a fully integrated back-office billing and customer service platform have helped us elevate our customer care processes along with the dramatic growth in new services. Our 20,000 employees have access to comprehensive training resources and development opportunities to enhance their skills and knowledge, ensuring a long continuation of Cox’s standing as a service-oriented, sales-driven and customer-focused organization. That mission is further driven by the company’s strength of management. Our local and corporate leadership teams average 15 years of experience with the company, ensuring continuity, consistency and depth of experience and expertise. 5 MANHEIM WHOLESALE AUCTIONS CYBERLOTS AUCTIONS RECONDITIONING PAINTLESS DENT REPAIR VEHICLE CERTIFICATION Strength Matters Deep Customer Relationships For automotive dealers, Manheim is the single largest auction system for buying and selling used vehicles. Eighty-six thousand car dealers in the U.S. – that’s 90% of the marketplace – are Manheim customers. Ninety percent of all dealers across the country attend a Manheim auction at least once a month. We sell vehicles for every significant consign or in the country – factories, rental companies, fleet operators, leasing firms and finance organizations who rely on Manheim to have their vehicle inventories warehoused, marketed, transported, titled, reconditioned and more. The breadth and depth of Manheim’s relationships with professional used car buyers and sellers is unmatched, making us the de facto stock exchange of the used car industry – an industry that keeps America mobile, generates more than $376 billion in sales at the retail level and represents a major portion of our nation’s economy. 6 VEHICLE INSPECTION DEALER FINANCIAL SERVICES TITLING THE INDUSTRY’S “TRADING FLOOR” Used car sales outnumber new car sales four to one, and the remarketing of used cars is a $376 billion industry, with more than 42 million used vehicle transactions occurring in 2001. At the center of the auto remarketing industry are wholesale auctions – large, energetic meeting places where the fast-paced bidding sets the current value of a vehicle each and every time a unit is sold. Auctions today are sophisticated businesses. Car dealers, manufacturers, leasing organizations and rental car companies all look to auctions to help them manage their inventories, and they use the auctions’ added services and information to help manage their overall businesses more profitably. Manheim stands apart from its competitors by offering a range of services that address the special needs of each participant. The company’s services include: •Auctions. Manheim operates auctions in every major U.S. market, as well as Canada, the U.K., France, Australia and New Zealand. In North America this year, Manheim sold more than five million vehicles with a total value of $54 billion. Overseas, we increased the number of vehicles sold to more than 400,000. •Reconditioning. Manheim is the nation’s largest provider of vehicle reconditioning services, providing mechanical, body and paint and detail services. •Certification. Wholesale certification services are available to vehicle sellers at each of Manheim’s auction sites. •Post-sale inspections. Vehicle buyers can purchase with more confidence and obtain a Manheim after-the-sale inspection report at every auction location. •Financing. Manheim Automotive Financial Services provides floor-plan financing to independent dealers throughout the U.S. •Remarketing Solutions. Manheim’s Remarketing Solutions subsidiary delivers title services, end of lease/rental inspections, recovery services and transportation services to auction participants across the U.S. “Every one of our auctions is a team effort involving lots of behind-thescenes activities that lead to the successful remarketing of a car or truck,” emphasizes Dean Eisner, President and CEO (left), shown here alongside Darryll Ceccoli, COO of Manheim Auctions. Technology Across the Board Manheim provides and uses technology to enhance every aspect of the remarketing process. We have applied new technology to drive Internet sales, customer communication and business-tobusiness applications. In fact, more than 30,000 dealers now use Manheim Online (MOL) to purchase cars, check the pulse of the market and plan their auction visits. Manheim’s online Cyberlot sales continue to grow, from 12,000 units in 1998 to 135,000 units in 2001 – a compound annual growth rate of 124%. Manheim Auctions became a Cox company in l968. Over the years, the business has grown phenomenally and today is Cox’s second largest revenue producer. But there is still room for significant expansion as Manheim further deepens its relationships with customers, introduces new products and services and expands geographically in the U.S. and abroad. 7 COX N E W S PA P E R S DAILY NEWSPAPERS NON-DAILIES DIRECT MAIL ADVERTISING REAL ESTATE & CLASSIFIED GUIDES NEWSPRINT MANUFACTURING Strength Matters Greater Cooperation Yields Greater Performance Newspapers, by their nature, tend to be independent organizations that reflect the communities they serve. A key goal for Cox Newspapers has been to find a way to preserve this individuality, while tapping into synergies that are inherent in a large publishing organization. CoxNet is one realization of this goal. Using a wide area network, CoxNet allows all Cox papers, regardless of size, to share editorial and advertising content. Sharing resources, people and, most of all, ideas throughout Cox Newspapers is helping to build a more effective and productive organization. One measure of success: comparing our operating performance during the recession of the past year to the performance during the recession of 1990-91. Today, the newspaper group is generating MEETING CHALLENGES The past months have been challenging ones in every sense for Cox Newspapers. For journalists, the September 11 attacks and the war on terrorism represented possibly the biggest story of a generation. Editorial staffs responded to this challenge admirably. Staffs worked around-theclock to produce an array of extra editions in the hours and days following the attacks. Among the most memorable coverage: an illustration of the Statue of Liberty with the World Trade Center reflected in her eyes by editorial cartoonist Mike Luckovich of The Atlanta JournalConstitution and an editorial in the Palm Beach Post published on Thanksgiving Day. Wise Moves On the business side of Cox Newspapers, 2001 presented a very different type of challenge: the inevitable decrease in advertising dollars that comes with a recession. Our response to this challenge was equally as effective. The company began planning for weaker economic conditions more than a year ago by trimming discretionary costs and holding payroll expenses. As a result, the newspaper group has been able to weather the downturn with minimal disruption to operations. Innovative thinking also has played a role in this process. The reduction in the page width of our newspapers this year was a win-win decision – contributing major financial savings and improving the appearance of the paper. Similarly, merging the weekday editions of the afternoon Atlanta Journal into the morning Atlanta Constitution was not only a financial success, but also a way to improve the overall newspaper by increasing the editorial and opinion pages from two to three. more profitability on every dollar than it did a decade ago and producing a higher level of product quality. This is teamwork that matters. 8 Wise Investments Successfully managing through good times and bad is a major reason Cox Newspapers is entering its 104th year. In that period, we have grown from the Dayton Daily News to nearly 50 dailies and non-daily newspapers and shoppers in eight states. The newspaper group also includes Valpak, a direct mail business that reaches more than 50 million households a month, and a 50% interest in Trader Publishing, which circulates vehicle and employment classified guides in the nation’s top 55 markets, as well as Harmon Homes real estate guides and For Rent apartment guides. Cox Newspapers’ presence now extends beyond the printed page. All of our daily newspapers now maintain companion online editions, and these sites have enjoyed significant audience growth in the past year. In Atlanta, for instance, ajc.com has seen visitors to its site jump from 40,000 per day to 90,000 per day during 2001. Covering the war on terrorism has been a collaborative effort at Cox, bringing together reporters and editors working across 11 time zones. “We had an early tip on the story about two Texas women who were held hostage in Afghanistan and were able to quickly provide a local, national and international perspective. That's a great model for how a news organization can work together for readers,” says Jay Smith, president of Cox Newspapers. 9 COX TELEVISION NETWORK AFFILIATED STATIONS INDEPENDENT STATIONS FULL-SERVICE RESEARCH ORGANIZATION Strength Matters Number One in Local News News is crucial in local television. It is essentially the one area of programming where an over-the-air broadcaster can distinguish itself. In truth, every station can bid on the syndicated programming available to its market. And, network affiliation determines the network feed and profile. Local service, most particularly news, is the area where the creativity, talent and local sensitivity of a station comes through. Fortunately, great local news is a core competency for Cox Television. Our approach is consistent: hire good journalists to provide the best local information possible; conduct research to assure that the station stays attuned to the style of news that viewers want; and deliver the information in the most professional, meaningful and engaging manner possible. Following that strategy, Cox Television’s level of success in local news is virtually unmatched by peer broadcasting companies. 10 TELEVISION ADVERTISING SALES REP FIRMS “Producers, sales people, accountants, camera crews, technical directors, writers, researchers, editors and many more professionals help Cox Television succeed. We have some of the best people in the industry on our staffs – many of whom have risen through the ranks,” says Andy Fisher, President, Cox Television. READY FOR THE DIGITAL TRANSITION An exciting development at Cox Television today is the transition to digital television. We currently have seven stations on the air with digital signals. By the end of 2002, all Cox Television stations will have digital transmitters operational. Presently, only a modest percentage of television viewers are equipped to see digital television, but those who do are giving the technology rave reviews for signal performance and improved sound quality. A New Era Cox Television will invest more than $60 million to put our television group onto the digital band. In the long run, digital television not only will provide higher quality video and audio, it will also provide ancillary data to support the television broadcast much like a Web site does today. Digital capability opens the door to transmitting multiple streams of video, so that more than one television signal at a time can be received or more than one television program can come across one signal. It also means a future full of new opportunities. We expect to be well equipped – technically and creatively – to give digital audiences the dramatically expanded and more sophisticated viewing choices that will be sought in the coming years. Industry Leadership Cox entered the television business in l948 when thenChairman Jim Cox, Jr. authorized the launch of WSBTV in Atlanta. Today, Cox Television is a 15-station enterprise and our television advertising rep business is by far the largest in the nation. In spite of the soft advertising climate in 2001, we continued to grow, particularly in our rep businesses, which attracted 56 new client stations and extended contracts with 19 current customers. The result was an almost $50 million increase in total contract value in 2001. This growth extended our share of the national spot and representation business to 48%, a 15% increase over last year and an accomplishment that makes the Cox organization 60% larger than its nearest competitor. That’s strength that matters. 11 COX RADIO PROGRAMMING RADIO ADVERTISING SALES Strength Matters Ask, Listen and Learn Cox Radio’s ability to execute has earned us an enviable reputation as one of the radio industry’s most skilled station operators. There are two aspects to this strong position: sales and programming. Cox Radio invests significant resources in training our sales force in consultative selling. The idea is to approach every client as their overall marketing consultant and provider, rather than simply an agent of airtime sales. The second component of our success is research-based programming. Cox Radio is a firm believer in listening to the target audience and providing what they want to hear. Our stations continually ask, listen and learn. ORGANIZATION OF LOCAL EVENTS INTERACTIVE WEB SITES SOLID BRANDS, LOCAL FOCUS Cox Radio continues to outperform its peers by building great local brands and focusing on customers. While every station management team is given the freedom to operate, all Cox Radio stations share the same basic philosophy of operational excellence. We have a balanced portfolio of stations clustered in attractive, high-growth markets, and our growth plan is straightforward: Keep improving our current stations and successfully integrate new ones. During 2001, we were particularly active in integrating new stations, and achieved noteworthy successes in Houston where KHPT-FM became the most successful revenue generating start-up in Cox Radio history, posting over a 2,000% increase in a market that was down 9.5%. We also had great success in the Greenville/Spartanburg, NC market with our start-up, WHZT-FM. In 2001, Cox Radio continued to deliver results to shareholders. Our stock price increased 13%, compared to the Standard & Poor’s 500 Index which declined 14%. Much of the company’s success in 2001 can be traced to our early preparation for an economic downturn. We laid out budget contingency plans to deal with tough market conditions before the economy slowed. This allowed us to reduce our costs without negatively impacting the strength of our brands. A Community Voice Our stations are regularly a part of local events that support charities, schools, and other community organizations. This local involvement was dramatically demonstrated after the events of September 11, when our Long Island, NY stations went commercial-free for six days, providing invaluable support for firefighters and rescue workers. Those same stations participated in candlelight vigils and raised more than $1.4 million for the tragedy’s victims, while other Cox stations nationwide helped rally their communities through fundraisers and special programming. Digital Ready While a nationwide rollout of digital radio is still five-to-seven years away, Cox Radio designated Miami, where we operate four radio stations, to serve as the technology’s test market. To further our participation in the pilot program, we are an investor in iBiquity Digital Corporation, which is developing and will license this technology. Radio was the first venture for the Cox family outside the world of newspapers. Jim Cox, Jr. convinced his father that the new technology would extend the reach of the Dayton Daily News. As a result, WHIO-AM, Dayton, came aboard in 1934. Seventy-one years later, Cox Radio is the nation’s third largest radio broadcasting company in terms of revenues and the largest pure-play radio station group in the country. 12 Bob Neil, President and CEO of Cox Radio, puts a lot of responsibility in the hands of the local stations. “Using research and community knowledge, each station follows the company’s basic operating and sales philosophies while adding their own local flavor,” he says. 13 A U T O T R A D E R .COM VEHICLE ADVERTISING SEARCH PRICING Strength Matters A Marketplace That Works The most successful Web sites are those that provide a new and better way of doing things and offer a valuable service that customers are willing to buy. AutoTrader.com fits the description perfectly. We are now the world’s largest online marketplace for used cars, bringing together tens of thousands of buyers and sellers every day. Buyers like our site because they can efficiently search the world’s largest database of used cars and drilldown to exacting details, plus get critical information on pricing, financing and other services. Sellers, on the other hand, know that AutoTrader.com delivers a huge buying audience. Dealers in particular see the value. They are able to advertise their vehicle inventory to a huge, motivated audience at up to 90% less than what it would cost using traditional advertising media. AutoTrader.com combines three Cox strengths – media experience, a strong auto classified advertising brand and automotive knowledge and relationships – to create a new asset. Since its founding in late 1997, AutoTrader.com has grown significantly. The past 12 months have been a period of continued rapid growth: revenues more than doubled; paying customers increased 47%, and monthly visitors grew from 3.6 million to 5.8 million, a 62% increase. Chip Perry, President and CEO, AutoTrader.com 14 FINANCING INSURANCE CARE HISTORY COX INTERACTIVE CITY SITES BROADBAND HOME PAGES ADVERTISING SALES MEDIA ONLINE STRATEGIC CREATIVE & MEDIA PLACEMENT STUDIO Strength Matters One Network, Many Sites Cox Interactive Media is built on the classic Cox belief in the value of the local advertising marketplace, and the Cox tradition of embracing the challenges of new media. Launched in 1997, Cox Interactive commands the number one local site ranking in eight of the 20 markets we serve. Two sites, SanDiegoInsider.com and AccessAtlanta.com, are the #1 and #2 rated local sites, respectively, in the U.S. What underpins this audience success is a product and brand strategy developed, again in the Cox tradition, through extensive consumer research. Cox Interactive’s local sites are designed to reflect the basic Internet attribute of utility. In our case, that means helping our users find what they need – home, job, car, product, service, restaurant, concert – when they need it, in close proximity to their home or office. And it means promoting the “find it fast” difference aggressively to online consumers in our markets. The success of this strategy is evident in the rapid audience growth of the network: Unique users grew to 6 million a month in December, a 51% increase year-over-year. Cox Interactive has unique experience in programming high-speed broadband products and services. We have been the content programming partner for Cox Communications high-speed broadband access services since 1997. In addition to the network’s 20 core major market sites, Cox Interactive also delivers local programming to an additional 10 markets served by Cox Communications. This growth and expansion of Cox Interactive is made possible through the networking of our sites into a common technological platform. One network serving many sites is one of the invisible but critical strengths of Cox Interactive, and it will serve us well in the future as we continue to follow the evolving course of this new medium. Peter Winter, President, Cox Interactive Media 15 COX C O M M U N I C AT I O N S , I N C . Tulsa, OK Stillwater, OK Muskogee, OK McAlster, OK Manhattan/Junction City, KS Salina, KS Wichita, KS Humboldt County, CA New England Cleveland, OH Bentonville, AR Fayetteville/Springdale, AR Northern Virginia Topeka, KS Ft. Smith, AR Hampton Roads, VA SE Kansas Roanoke, VA S.W. Missouri Rocky Mount, NC Jonesboro, AR Greenville, NC Russellville, AR New Bern, NC Omaha, NE Dodge City/ Garden City, KS Santa Barbara/Bakersfield, CA Las Vegas, NV Enid, OK Orange County, CA San Diego, CA Phoenix, AZ Tucson/Sierra Vista, AZ Oklahoma City, OK Tyler, TX West Texas Bryan, TX Georgetown, TX Bossier City, LA Alexandria, LA Middle Georgia Pensacola/Ft. Walton Beach, FL Gainesville/Ocala, FL New Orleans, LA Victoria, TX Lake Charles, LA Baton Rouge, LA Lafayette, LA New Iberia, LA Locations Following is a list of Cox Communications’ largest operations (those serving 15,000 or more customers). ARIZONA NEBRASKA Phoenix Tucson/Sierra Vista Omaha (including Council Bluffs, Iowa) ARKANSAS Las Vegas Bentonville, Fayetteville/Springdale, Fort Smith, Jonesboro, Russellville and nearby areas* NEW ENGLAND CALIFORNIA Humboldt Orange County/Palos Verdes San Diego Santa Barbara/Bakersfield NEVADA New England operation encompasses portions of Rhode Island, Connecticut and Massachusetts NORTH CAROLINA North Carolina operation includes Greenville, New Bern, Rocky Mount and nearby areas OHIO FLORIDA Cleveland area Gainesville/Ocala Pensacola/Ft. Walton Beach OKLAHOMA GEORGIA Middle Georgia (Macon, Warner Robins and nearby areas) KANSAS Kansas operation includes Dodge City/Garden City, Manhattan/Junction City, Salina, Southeast Kansas, Topeka, Wichita and nearby areas LOUISIANA Alexandria, Bossier City, Lafayette, Lake Charles, New Iberia and nearby areas* Baton Rouge New Orleans Greater Oklahoma (Enid, Muskogee, Stillwater, McAlster and nearby areas) Oklahoma City Tulsa TEXAS Bryan, Georgetown, Tyler, Victoria and nearby areas* West Texas (Lubbock, Midland, Amarillo, San Angelo, Abilene and nearby areas. Also includes Clovis, New Mexico.) VIRGINIA Hampton Roads Northern Virginia (Fairfax County and Fredericksburg) Roanoke *These locations are part of the Middle America Cox (MAC) operation, encompassing portions of Arkansas, Louisiana, Missouri, Oklahoma and Texas. 16 Management James O. Robbins President and Chief Executive Officer Kimberly C. Edmunds Vice President, Customer Service Jay A. Rolls Vice President, Data Engineering Patrick J. Esser Executive Vice President, Operations Lynne E. Elander Vice President, Video Product Management Joseph J. Rooney Vice President, Marketing Jimmy W. Hayes Executive Vice President, Finance and Administration Chief Financial Officer F. William Farina Vice President, Advertising Sales Christopher J. Bowick Senior Vice President, Engineering Chief Technical Officer Dallas S. Clement Senior Vice President, Strategy and Development Mae A. Douglas Senior Vice President and Chief People Officer John M. Dyer Senior Vice President, Operations James A. Hatcher, Esq. Senior Vice President, Legal and Regulatory Affairs Scott A. Hatfield Senior Vice President and Chief Information Officer Claus F. Kroeger Senior Vice President, Operations Jill Campbell Vice President, Operations Susan W. Coker Treasurer Ellen M. East Vice President, Communication and Investor Relations William J. Fitzsimmons Vice President, Accounting and Financial Planning Chief Accounting Officer Roy Frederickson Vice President, Product Development John G. Hildebrand Vice President, Multimedia Technology Jayson R. Juraska Vice President, Business Development Hugh A. McCarley Vice President, Engineering Technology Charles H. McElroy Vice President and General Manager, Cox Business Services Richard A. Mueller Vice President, Network Planning, Engineering and Operations Carrington F. Phillip, Esq. Vice President, Regulatory Affairs David Pugliese Vice President, Sales and New Product Management James H. Renken Vice President, Operations Support Robin H. Sangston, Esq. Vice President and Assistant General Counsel John P. Spalding, Esq. Vice President and Assistant General Counsel Mark S. Williams Vice President, Operations Engineering Robert C. Wilson Vice President, Programming Albert W. Young Vice President, Telephony Engineering LOCAL MANAGEMENT Each of the following holds the position of Vice President/ General Manager of the operation listed. Philip C. Ahlschlager North Carolina Janet H. Barnard Omaha, NE David A. Bialis Oklahoma Gregory Bicket New England Keith Crossley Humboldt, CA J. Michael Dyer Middle Georgia William K. Geppert San Diego, CA L. Keith Gregory Pensacola/Ft. Walton Beach, FL Kevin Haynes Cleveland, OH Richard A. Hook Middle America Donald J. Karell Kansas Mark Lipford Las Vegas, NV Catherine McCollough Roanoke, VA Gary T. McCollum Northern Virginia Julie O. McGovern Santa Barbara/Bakersfield, CA Paul Cronin Acting General Manager New Orleans, LA J. Stephen Rizley Phoenix, AZ Gretchen H. Shine Tucson/Sierra Vista, AZ Jacqui Vines Baton Rouge, LA Connie S. Wharton West Texas Franklin R. Bowers Hampton Roads, VA Leo W. Brennan Orange County, CA 17 MANHEIM AUCTIONS Seattle, WA Grantville, PA Manheim, PA Hatfield, PA Portland, OR New Castle, Ontario Newburgh, NY Minneapolis, MN North Dighton, MA Toronto, Ontario Shakopee, MN Detroit, MI Clifton Park, NY Milwaukee, WI Fairfield, NJ Chicago, IL Port Newark, NJ Fort Wayne, IN Bolingbrook, IL Salt Lake City, UT Bordentown, NJ Omaha, NE Cranberry Township, PA Grove City, OH Hayward, CA Commerce City, CO Elkridge, MD Denver, CO Cincinnati, OH Kansas City, MO Fresno, CA Fredericksburg, VA Granite Harrisonburg, VA St. Louis, MO City, IL Louisville, KY Las Vegas, NV Kenly, NC Statesville, NC Springfield, MO Nashville, TN Albuquerque, NM Darlington, SC Phoenix, AZ Atlanta, GA Hattiesburg, MS Tucson, AZ Dallas, TX Honolulu, HI Ft. Worth, TX El Paso, TX Los Angeles, CA Anaheim, CA Fontana, CA Riverside, CA Oceanside, CA San Antonio, TX Pensacola, FL Scott, LA New Orleans, LA Tampa, FL Houston, TX Clearwater, FL Orlando, FL Daytona Beach, FL Lakeland, FL West Palm Beach, FL Davie, FL Bayamon, PR Locations Arizona Manheim’s Arizona Auto Auction Manheim’s Greater Phoenix Auto Auction Manheim’s Tucson Auto Auction Manheim’s Pensacola Auto Auction Manheim’s St. Pete Auto Auction Manheim’s West Palm Beach Auto Auction California Manheim’s Bay City Auto Auction Manheim’s California Auto Dealer’s Exchange Manheim’s Fresno Auto Auction Manheim’s Los Angeles Dealer Auto Auction Manheim’s Riverside Auto Auction Manheim’s San Diego Auto Auction Manheim’s Southern California Auto Auction Georgia Manheim’s Atlanta Auto Auction Manheim’s Bishop Brothers Auto Auction Manheim’s Georgia Dealers’ Auto Auction Colorado Manheim’s Colorado Auto Auction Manheim’s Denver Auto Auction Florida Manheim’s Central Florida Auto Auction Manheim’s Daytona Auto Auction Manheim’s Florida Auto Auction of Orlando Manheim’s Greater Tampa Bay Auto Auction Manheim’s Imperial Auto Auction Manheim’s Lakeland Auto Auction Manheim’s Lauderdale-Miami Auto Auction Manheim’s Orlando Orange County Auto Auction 18 Plus 30 locations in the United Kingdom, France, Australia and New Zealand Hawaii Manheim’s Aloha Auto Auction Illinois Manheim’s Arena Auto Auction Manheim’s Auction Way Sales Manheim’s Gateway Auto Auction Manheim’s Greater Chicago Auto Auction Maryland Manheim’s Baltimore-Washington Auto Exchange Massachusetts Manheim’s American Auto Auction Michigan Manheim’s Detroit Auto Auction Manheim’s Metro Detroit Auto Auction Minnesota Manheim’s Minneapolis Auto Auction Manheim’s Northstar Auto Auction Mississippi Manheim’s Mississippi Auto Auction Indiana Manheim’s Fort Wayne Vehicle Auction Manheim’s Louisville Auto Auction Missouri Manheim’s 166 Auto Auction Manheim’s Kansas City Auto Auction Manheim’s St. Louis Auto Auction Kentucky Manheim’s Mid-America Auto Auction Nebraska Manheim’s Omaha Auto Auction Louisiana Manheim’s Greater New Orleans Auto Auction Manheim’s Lafayette Auto Auction Nevada Manheim’s Greater Las Vegas Auto Auction Manheim’s Greater Nevada Auto Auction Locations (CONTINUED) New Jersey Manheim’s National Auto Dealers Exchange Manheim’s Skyline Auto Exchange Manheim’s Skyline Port Newark Facility New Mexico Manheim’s Albuquerque Auto Auction New York Manheim’s Newburgh Auto Auction Manheim’s Northway Exchange Auto Auction North Carolina Manheim’s Aycock Auto Auction Manheim’s Statesville Auto Auction Ohio Manheim’s Cincinnati Auto Auction Manheim’s Ohio Auto Auction Oregon Manheim’s Portland Auto Auction Pennsylvania Manheim’s Butler Auto Auction Manheim’s Hatfield Auto Auction Manheim’s Keystone Auto Auction Manheim Auto Auction South Carolina Manheim’s Clanton’s Auto Auction Tennessee Manheim’s Nashville Auto Auction Manheim’s Nashville Dealer Auto Auction Manheim’s Tennessee Auto Auction Texas Manheim’s Big H Auto Auction Manheim’s Dallas Auto Auction Manheim’s Dallas-Fort Worth Auto Auction Manheim’s Dealers Auto Auction of Dallas Manheim’s El Paso Auto Auction Manheim’s Fort Worth Vehicle Auction Manheim’s San Antonio Auto Auction Manheim’s Texas Hobby Auto Auction Utah Manheim’s Utah Auto Auction Virginia Manheim’s Fredericksburg Auto Auction Manheim’s Harrisonburg Auto Auction Washington Manheim’s South Seattle Auto Auction Wisconsin Manheim’s Metro Milwaukee Auto Auction Puerto Rico Manheim’s Caribbean Auto Dealers Exchange Canada Manheim’s Oshawa Dealers Exchange Manheim’s Toronto Auto Auction Other Operations Dent Wizard Manheim Auctions Government Services Manheim Automotive Financial Services St. Louis, MO Atlanta, GA Atlanta, GA Remarketing Solutions Manheim Europe Manheim Interactive Manheim Asia Pacific Nashville, TN U.K. and France Atlanta, GA Australia and New Zealand Management Dean H. Eisner President and Chief Executive Officer David Berkstresser Vice President, Group Operations Thomas Nohstadt Vice President, Business Development Keith N. Williams Vice President, Group Operations Darryll M. Ceccoli Chief Operating Officer Michael W. Broe Vice President, Group Operations Charles E. Novince Vice President, Special Operations/Daimler-Chrysler David Young Vice President, Group Operations Mark Brunn Vice President, Career Development David R. Nutter Vice President, Reconditioning Operations John Bailey Managing Director, Manheim Europe Kelly G. Conger Vice President, Group Operations Kyle E. Ohman Vice President, Group Operations Kevin Beattie President, Dent Wizard Louis A. Fazio Vice President, Factory Operations Berta M. Phelps Vice President, Special Operations Tony Giurato Vice President, Special Operations/ General Motors Robert W. Pohle Vice President, Special Operations David A. Harrison Executive Vice President, Operations Ralph M. Liniado Senior Vice President, Development Harold J. Logan Senior Vice President, Marketing Jamie D. Porter Senior Vice President, Operations Ronald J. Robbins Senior Vice President, Industry Relations Richard E. Deckard Vice President and Chief Information Officer Michael P. Lasini Vice President, Sales Jeffrey J. Lenar Vice President, Real Estate Michael J. Langhorne Vice President and Chief Financial Officer Michael F. Moumousis Vice President, National Accounts Diane Fiorillo Barton Vice President, Marketing David Munnikhuysen Vice President, Support Services Michael L. Russo Vice President, National Accounts Milton J. Schoof Vice President, National Accounts David Fowles Managing Director, Manheim Asia-Pacific Joe Luppino Chief Operating Officer, Manheim Interactive Leon L. Lyon Vice President and General Manager – MAFS Nick Peluso President, Logistics Group Daniel E. Thomas Vice President, Group Operations William A. Tiedemann Vice President, Special Operations/Ford 19 COX N E W S PA P E R S , I N C . Springfield, OH Dayton, OH Middletown, OH Grand Junction, CO Hamilton, OH Washington, D.C. Tarboro, NC Rocky Mount, NC Norfolk, VA Elizabeth City, NC Greenville, NC Greenville, SC Atlanta, GA Waco, TX Austin, TX Newspapers Other Operations Longview, TX Marshall, TX Nacogdoches, TX Lufkin, TX Largo, FL West Palm Beach, FL Locations DAILIES CIRCULATION The Atlanta Journal-Constitution (GA) Austin American-Statesman (TX) The Palm Beach Post (FL) Dayton Daily News (OH) Waco Tribune-Herald (TX) Springfield News-Sun (OH) The Daily Sentinel (Grand Junction, CO) Longview News-Journal (TX) Journal-News (Hamilton, OH) The Middletown Journal (OH) The Daily Reflector (Greenville, NC) The Lufkin Daily News (TX) Rocky Mount Telegram (NC) The Daily Advance (Elizabeth City, NC) The Daily Sentinel (Nacogdoches, TX) The Marshall News Messenger (TX) Palm Beach Daily News (FL) Total DAILY SUNDAY 410,360 184,869 169,204 150,444 40,460 31,621 644,880 239,983 211,221 200,319 50,490 38,443 29,950 29,446 22,617 22,026 20,985 14,910 14,394 34,047 37,397 24,091 23,061 23,478 16,904 16,537 11,525 11,837 8,933 7,056 5,923 10,808 8,075 6,415 1,174,723 1,597,986 Source: Internal Annual Average Circulation as of December 31, 2001 20 NON-DAILIES CIRCULATION Florida Pennysaver (West Palm Beach, FL) Tri-County Shoppers News (Springfield, OH) Pulse-Journal (Mason, OH) The Western Star (Lebanon, OH) Fairfield Echo (OH) The Nickel (Grand Junction, CO) Telegram Advantage (Rocky Mount, NC) Duplin Times (Kenansville, NC) The Star Press (Springboro, OH) The Germantown Press (OH) Today’s Express (Morrow, OH) The Bastrop Advertiser (TX) North Lake Travis Log (Lago Vista, TX) The Enterprise (Williamston, NC) The Chowan Herald (Edenton, NC) The Miamisburg/West Carrollton News (OH) Westlake Picayune (Austin, TX) Oxford Press (OH) Monroe Times (OH) Beaufort-Hyde News (Belhaven, NC) Bertie Ledger-Advance (Windsor, NC) Lake Travis View (Austin, TX) The Franklin Chronicle (OH) The Smithville Times (TX) The Pflugerville Pflag (TX) The Standard Laconic (Snow Hill, NC) The Times-Leader (Ayden-Grifton, NC) The Farmville Enterprise (NC) The Perquimans Weekly (Hertford, NC) The Weekly Herald (Robersonville, NC) 418,526 67,100 31,817 29,043 23,698 19,994 13,885 12,656 12,069 10,519 7,145 5,101 5,065 4,679 4,508 4,480 4,072 4,031 3,912 3,545 3,447 3,132 2,637 2,553 2,530 2,461 2,228 1,754 1,580 1,550 Total 709,717 Source: Internal Annual Average Circulation as of December 31, 2001 Management Jay R. Smith President Mark P. Mansfield President, Cox Newsprint Supply, Inc. Brian G. Cooper Senior Vice President Ron Martin Senior Editor Editor, The Atlanta Journal-Constitution Jay Campbell Vice President, Circulation Michael Q. Parker Vice President, Internet Strategy and Solutions Cathy Coffey Vice President, Advertising Stan Richmond Vice President, Operations Susan S. Davidson Vice President, Human Resources Buddy Solomon Vice President, Finance and Controller Karla Garrett Harshaw Senior Editor, Community Newspapers Caroline C. John Vice President, Marketing, Research and Promotion Jim Todesco Director, Online Advertising Jenny Trautman Director, Information Technology Newspaper Publishers Gary Borders The Daily Sentinel (Nacogdoches,TX) Glenn McCutchen Longview News–Journal (TX) Edwina Blackwell Clark The Journal–News (Hamilton, OH) George Orbanek The Daily Sentinel (Grand Junction, CO) Carl E. Esposito The Middletown Journal (Hamilton, OH) Joyce Reingold Palm Beach Daily News (FL) Belinda Gaudet The Lufkin Daily News (TX) Dan C. Savage Waco Tribune-Herald (TX) Tom Giuffrida The Palm Beach Post (FL) William R. Swaim Springfield News-Sun (OH) Tim Hobbs The Daily Advance (Elizabeth City, NC) Brad Tillson Dayton Daily News (OH) Roger S. Kintzel The Atlanta Journal–Constitution D. Jordan Whichard III The Daily Reflector (Greenville, NC) Michael A. Laosa Austin American–Statesman (TX) Raye P. Woodin, III Rocky Mount Telegram (NC) Phil Latham The Marshall News Messenger (TX) Other Operations LOCATION MANAGEMENT Valpak Largo, FL, and Elm City, NC William B. Disbrow, President & CEO Cox Custom Media Greenville, SC Todd H. Taylor, President PAGAS Mailing Services Tarboro and Charlotte, NC Brenda Cook, President & CEO SP Newsprint Atlanta, GA Dr. James L. Burke, President & CEO Norfolk, VA Conrad M. Hall, President & CEO Washington, D.C. News Bureau Washington, D.C. Andrew N. Alexander, Bureau Chief CoxNet Atlanta, GA John Reetz, Director (33% owned) Trader Publishing Co. (50% owned) 21 COX TELEVISION Seattle, WA New York City, NY Reno, NV Johnstown, PA Pittsburgh, PA Steubenville, OH Dayton, OH San Francisco, CA San Jose, CA Charlotte, NC Atlanta, GA El Paso, TX Television Other Operations Orlando, FL Locations STATION MARKET KTVU-TV San Francisco/Oakland KICU-TV San Jose/San Francisco WSB-TV KIRO-TV AFFILIATION GM 5 FOX Jeff Block 1 5 IND Tom Raponi 6 Atlanta 9 ABC Greg Stone 1 Seattle 12 CBS John Woodin 2 WFTV-TV Orlando 20 ABC David Lippoff 2 WRDQ-TV Orlando 20 IND David Lippoff 7 RANK IN TARGET* AUDIENCE WPXI-TV Pittsburgh 21 NBC Ray Carter 1 WSOC-TV Charlotte 27 ABC Lee Armstrong 1 WAXN-TV Charlotte 27 IND Lee Armstrong 7 WHIO-TV Dayton 60 CBS Harry Delaney 1 WJAC-TV Johnstown 96 NBC Dick Schrott 1 KFOX-TV El Paso 101 FOX Teresa Burgess 3 KRXI-TV Reno 110 FOX Marty Ozer 3 KAME-TV Reno 110 UPN Marty Ozer 5 WTOV-TV Steubenville 150 NBC Tim McCoy 1 *November 2001 Nielsen 22 MARKET SIZE Other Operations TeleRep New York Steven J. Herson, President Harrington, Righter & Parsons, Inc. New York Murray L. Berkowitz, President MMT Sales New York Larry Strumwasser, President The Eagle Group Atlanta Michael Pelaia, Executive V.P., COO Management Andrew S. Fisher President, Cox Television William M. Spell Vice President, Sales and Marketing Bruce R. Baker Executive Vice President, Television Stations John D. Tramontanis Controller John G. Boyette Senior Vice President, Finance and Administration Judith L. Versteeg Vice President, Human Resources Sterling E. Davis Vice President, Engineering Heidi Wiedenbauer Bureau Chief, Washington, D.C. News Bureau Thomas E. McClendon Vice President and Director of Research David F. Grayson Director, Cox Retail Marketing 23 COX RADIO, INC. Stamford/Norwalk, CT Bridgeport, CT New Haven, CT Long Island, NY Dayton, OH Richmond, VA Louisville, KY Tulsa, OK Greenville/Spartanburg, SC Atlanta, GA Birmingham, AL Honolulu, HI Jacksonville, FL Houston, TX San Antonio, TX Orlando, FL Tampa, FL Miami, FL Locations MARKET (1) STATION ATLANTA WSB-AM WSB-FM WALR-FM WBTS-FM WFOX-FM WBHJ-FM WBHK-FM WAGG-AM WRJS-AM WZZK-FM WODL-FM WBPT-FM WHKO-FM WHIO-AM WDPT-FM WDTP-FM WJMZ-FM WHZT-FM KRTR-FM KXME-FM (4) KGMZ-FM KCCN-FM KINE-FM KCCN-AM KHPT-FM KLDE-FM KTHT-FM KKBQ-FM WAPE-FM WFYV-FM WKQL-FM WMXQ-FM WOKV-AM WBWL-AM BIRMINGHAM DAYTON GREENVILLE/ SPARTANBURG HONOLULU HOUSTON JACKSONVILLE 24 RANK IN TARGET 1 3 4 4 12 1 1 8 34 2 17 (2) 1 8 12 (3) 3 5 2 4 5 1 4 19 12 13 13 14 1 1 3 3 6 19 FORMAT VP/GM News/Talk Adult Contemporary Urban Adult Contemporary Contemporary Hit Radio/Rhythmic Oldies Contemporary Urban Hits Urban Adult Contemporary Gospel Gospel Country Oldies ‘80s Country News/Talk ‘80s ‘80s Urban Rhythmic/Contemporary Hit Radio Adult Contemporary Rhythmic Top 40 Oldies Hawaiian Contemporary Hit Radio Hawaiian Adult Contemporary News/Talk/Sports ‘80s Oldies Rhythmic Top 40 Country Contemporary Hit Radio Classic Rock Oldies ‘80s News/Talk News/Talk David Meszaros Tony Kidd Lori Rechin-Sheridan David DuBose To Be Determined Donna Hall Sam Church Austin Vali Michael Kelly Chris Wegmann Dick Williams Locations (continued) LONG ISLAND LOUISVILLE MIAMI ORLANDO RICHMOND SAN ANTONIO SOUTHERN CT TAMPA TULSA WBLI-FM WBAB-FM WHFM-FM WVEZ-FM WRKA-FM WSFR-FM WPTI-FM WEDR-FM WHQT-FM WFLC-FM WPYM-FM WCFB-FM WWKA-FM WDBO-AM WMMO-FM WHTQ-FM WPYO-FM WKLR-FM WKHK-FM WMXB-FM WDYL-FM (4) WARV-FM KONO-FM KONO-AM KCYY-FM KCJZ-FM KKYX-AM KSMG-FM KISS-FM WPLR-FM WEZN-FM (4) WYBC-FM WKHL-FM WEFX-FM WSTC-AM WNLK-AM WDUV-FM WWRM-FM WPOI-FM WSUN-FM WBBY-FM WHPT-FM KRMG-AM KRAV-FM KWEN-FM KRTQ-FM KJSR-FM 2 3 (5) 3 5 5 9 1 2 7 (2) 5 6 10 1 2 5 1 4 4 4 32 1 (6) 5 11 20 6 1 1 2 4 3 5 28 36 1 4 (2) 4 6 7 2 2 3 3 6 Contemporary Hit Radio Adult-Oriented Rock Adult-Oriented Rock Adult Contemporary Oldies Classic Rock ‘80s Urban Adult Contemporary Urban Adult Contemporary Hot Adult Contemporary Contemporary Hit Radio/Rhythmic/Dance Urban Adult Contemporary Country News/Talk Rock Adult Contemporary Classic Rock Contemporary Hit Radio/Rhythmic/Dance Classic Rock Country Hot Adult Contemporary Alternative Country Oldies Oldies Country Contemporary Hit Radio Classic Country Hot Adult Contemporary Adult-Oriented Rock Adult-Oriented Rock Adult Contemporary Urban Adult Contemporary Oldies Classic Rock News/Talk News/Talk/Sports Easy Listening Soft Adult Contemporary ‘80s Alternative Rock Soft Rock Classic Rock News/Talk Adult Contemporary Country Active Rock Classic Rock Kim Guthrie Elizabeth Hamma Jerry Rushin Mike Disney Rich Reis Bill Hendrich Debbie Morel Steve McCall Ben Reed Caroline Devine John Ryan Robin Faller Howard Tuuri Jay O’Connor Chuck Browning Source: Arbitron Market Reports four-book average for Winter 2001, Spring 2001, Summer 2001 and Fall 2001. (1) (2) (3) (4) (5) (6) Metropolitan market served; city of license may differ. The station format was changed during 2001; therefore, the station’s audience share and audience rank information for 2001 are not applicable. Audience share and audience rank information for WDPT-FM and WDTP-FM are combined because the stations are simulcast. Station operated by Cox Radio under a Joint Sales Agreement. Audience share and audience rank information for WBAB-FM and WHFM-FM are combined because the stations are simulcast. Audience share and audience rank information for KONO-FM and KONO-AM are combined because the stations are simulcast. Management Robert F. Neil President and Chief Executive Officer Neil O. Johnston Vice President and Chief Financial Officer Richard A. Ferguson Vice President and Co-Chief Operating Officer Richard A. Reis Group Vice President Gregg A. Lindahl Vice President, Cox Radio Interactive Jarrett A. O’Connor Regional Vice President Roxann L. Miller Vice President, Research Marc W. Morgan Vice President and Co-Chief Operating Officer Kimberly A. Guthrie Regional Vice President Robert B. Reed Regional Vice President 25 A U T O T R A D E R .COM Management Boston, MA Chicago, IL Norfolk, VA Los Angeles, CA Chip Perry President and Chief Executive Officer Jim McKnight Executive Vice President and Chief Operating Officer Brad Mohs Senior Vice President and Chief Technology Officer Atlanta, GA Dallas, TX Ft. Lauderdale, FL Joe George Vice President, Product Management Stan Green Vice President, Technology & Operations Regional Offices Boston, MA Chicago, IL Dallas, TX Ft. Lauderdale, FL Los Angeles, CA Norfolk, VA John McCormick, Regional Director Eric Webb, Regional Director Craig Hunt, Regional Director Alan Smith, Regional Director Dean Sloan, Regional Director Kenneth Lees, Regional Director Hal Greene Vice President, Dealer Sales Beth Jordan Vice President, Sales Operations Dave Raphael Vice President, National Sales Bill Templeton Vice President, Finance, and Chief Financial Officer HEADQUARTERS Atlanta, GA Rebecca Watson Vice President, Dealer Services Clark Wood Vice President, Marketing Greg Easterly General Manager, Auctions 26 COX INTERACTIVE MEDIA Network Management Peter M. Winter President Seattle, WA R. Scott Whiteside Vice President, Chief Operating Officer Cleveland, OH Pittsburgh, PA Dayton, OH Northern, VA Omaha, NE San Francisco, CA Roanoke, VA Santa Barbara, CA Palos Verdes, CA Providence, RI CT Humboldt, CA Hampton Roads, VA J. Lacey Lewis Vice President, Chief Financial Officer Neil Helms Vice President, Sales Las Vegas, NV Charlotte, NC Orange County, CA Oklahoma City, OK San Diego, CA Phoenix, AZ Tucson, AZ Atlanta, GA Macon/Middle Georgia, GA Steven Rosenboro Vice President, General Counsel West Texas, TX Austin, TX San Antonio, TX Baton Rouge, LA New Orleans, LA City Sites Broadband Sites Tom Bates Vice President, Product and Marketing Orlando, FL West Palm Beach, FL Joseph Y. Gallo Vice President, Chief Technology Officer Rodney Mayers Vice President, Business Development Gary R. Mills Vice President, Business Alliances Network of City Sites Khadeeja Sherrell Vice President, Human Resources SITE CITY STUDIO MANAGER AccessAtlanta.com Austin360.com GoCarolinas.com ActiveDayton.com HRtide.com* VegasValley.com* InsideNewOrleans.com* allnva.com* AccessOKC.com* DiscoverOmaha.com* OCnow.com* icFlorida.com AccessArizona.com* Pittsburgh.com OSO.com* sa360.com SDinsider.com* BayInsider.com SeattleInsider.com GoPBI.com * also have broadband site Atlanta, GA Austin, TX Charlotte, NC Dayton, OH Hampton Roads, VA Las Vegas, NV New Orleans, LA Northern Virginia Oklahoma City, OK Omaha, NE Orange County, CA Orlando, FL Phoenix, AZ Pittsburgh, PA Providence, RI San Antonio, TX San Diego, CA San Francisco, CA Seattle, WA West Palm Beach, FL Ken Womack Eric Braun Guy Cherp Tim Darcy Mavis Carr Jaeynka Postupack Beth James Roger Thompson Brian Blansett Kevin Sladovnik Gary Burch Brian O’Shea Kathryn Langman Kristen Heiser Tom Viall Glenn McLaren Chris Dudas Matt Konigsmark Margot Sinclair Savell Jon Glass Regional Management Keith Greer Regional Manager – West Claudine Langan Regional Manager – East Chris Coda Regional Sales Director – East Linda Napolitano Hansen Regional Sales Director – West CORPORATE SITE CIMedia.com Atlanta, GA Network of Broadband Sites SITE CITY SITE CITY BatonRouge.SimplyLocal.com Cleveland.SimplyLocal.com Connecticut.SimplyLocal.com Humboldt.SimplyLocal.com MiddleGeorgia.SimplyLocal.com Baton Rouge, LA Cleveland, OH Connecticut Humboldt County, CA Macon/Middle Georgia PalosVerdes.SimplyLocal.com Roanoke.SimplyLocal.com SantaBarbara.SimplyLocal.com Tucson.SimplyLocal.com WestTexas.SimplyLocal.com Palos Verdes, CA Roanoke, VA Santa Barbara, CA Tucson, AZ West Texas 27 COX ENTERPRISES, INC. Location Cox Enterprises, Inc. 6205 Peachtree Dunwoody Road Atlanta, GA 30328 (678) 645-0000 www.coxenterprises.com Management James C. Kennedy Chairman and Chief Executive Officer Michael J. Mannheimer Vice President, Materials Management David E. Easterly Vice Chairman John C. Mellott Vice President, Business Development G. Dennis Berry President and Chief Operating Officer Andrew A. Merdek Vice President, Legal Affairs and Secretary Robert C. O’Leary Executive Vice President and Chief Financial Officer Gregory B. Morrison Vice President and Chief Information Officer Timothy W. Hughes Senior Vice President, Administration Alexander V. Netchvolodoff Senior Vice President, Public Policy Preston B. Barnett Vice President and General Tax Counsel Thomas B. Whitfield Vice President, Direct Marketing Richard J. Jacobson Vice President and Treasurer John C. Williams Vice President, Marketing and Communications Marybeth H. Leamer Vice President, Human Resources Alexandra M. Wilson Vice President, Public Policy Other Operations Clarendon Farms, Inc. Hualalai Land Corp. Burton, SC Kailua-Kona, HI Ted R. Moring, Farm Manager Franklin T. Boteilho, Ranch Manager A Successful Kickoff Season 2001 marked a successful first season for a new women’s professional soccer league – the Women’s United Soccer Association. The league met or exceeded goals for fan attendance, sponsorship and television ratings this year, proving that women’s soccer has great potential for attracting a large national following. Cox Enterprises operates the Atlanta Beat, one of eight teams in the league, while Cox Communications operates the San Diego Spirit. Cox Enterprises also provides administrative support for the WUSA, which moved its headquarters from New York to Atlanta during the off-season. Cox is proud to support the league and the positive impact its players can have on the millions of young girls worldwide who play soccer and deserve good role models. 28 CXE-009 Cover.cgla r1 3/25/02 12:47 PM Page d Board of Directors Barbara Cox Anthony Anne Cox Chambers Arthur M. Blank Richard L. Braunstein Chairman, Dayton Newspapers Chairman, Atlanta Newspapers Co-Founder and Retired Chairman, Home Depot, Inc. Chairman, The Arthur M. Blank Family Foundation, AMB Group, LLC and the Atlanta Falcons Member, Dow, Lohnes & Albertson, PLLC Thomas O. Cordy David E. Easterly Carl R. Gross James C. Kennedy Retired President and Chief Executive Officer, The Maxxis Group, Inc. Vice Chairman, Cox Enterprises, Inc. Retired Senior Vice President and Chief Administrative Officer, Cox Enterprises, Inc. Retired President, Cox Newsprint Supply Chairman and Chief Executive Officer, Cox Enterprises, Inc. Ben F. Love Robert C. O’Leary Paul J. Rizzo Director, Chase Bank of Texas Retired Chairman and Chief Executive Officer, Texas Bancshares, Inc. Executive Vice President and Chief Financial Officer, Cox Enterprises, Inc. Retired Vice Chairman, IBM For more information about Cox Enterprises, please contact: Brian Farley, Executive Director – Corporate Communications Cox Enterprises, Inc. • 6205 Peachtree Dunwoody Road • Atlanta, GA 30328 • 1- 877- 4COXNEWS Visit our Web site: www.coxenterprises.com All trademarks and service marks referenced in this document are the property of their respective companies. Cox Enterprises is an Equal Opportunity Employer. CXE-009 Cover.cgla r1 3/25/02 12:47 PM Page a Exceptional employees build exceptional businesses. The exceptional Cox Enterprises employees featured in this annual report are: Cox Communications (pgs.4-5): Sean Vincent and Dawna Mitchell-Customer Service Representatives Manheim Auctions (pgs.6-7): Cindy Senft-Customer Service Supervisor, David Barker-Land Rover Certification Mechanic, Valorie Obie-Asst. Detail Manager, Jackie Sanford-Fleet/Lease Coordinator, Sisavanh Xayaphet-GM Mechanic, Malcom CruzWorld Omni Mechanic, Parrish Lambert-MAFS Manager, Nelle Ashmore-Dealer Sales, Pat Salasky-Office Manager, Greger Roner-General Manager, Rosalyn Bruce-Vehicle Registration, Barry Bligen-Lot Manager, Gardner Newman-Asst. Factory Manager, Jamie Porter-Senior Vice President, Operations, Judy Fields-Administrative Manager, Rosa Lanham-Title Clerk, Elinor Taylor-Dealer Sales, Harriet Frazier-Office, Sean O'Connell-Arbitration Manager, Sean McPartland-Accounting, Katie Judge-Public Relations Specialist, Fred Reynolds-Driver, Dave Harrison-Executive Vice President, Operations, Chris Bomar-Accounting, Marius Moore-Accounting Supervisor Cox Newspapers (pg.9): Dan Chapman-Reporter, Bob Deans-White House Correspondent, Brian Gaar-Reporter, Chuck Holmes-Foreign Editor, Terry Jo Ryan-Reporter, J.B. Smith-Reporter, Gary Susswein-Reporter, Cindy Van Auken-Reporter Cox Television (pgs.10-11): James Cosby-Local Sales Manager, Lynn Eugenio-Accounting Manager, Jackie Gailey-Producer, Don Griffin-Consumer Reporter, Rahna Harris-Traffic Manager, Johnny Hsu-Technical Operator (audio), Aleta Keel-Traffic Manager, Cyndi Quitmeyer-Video Tape Editor, Robert Martinez-Sales Manager, Emil J. Meynarez-Director/Technical Director, Keenan Pandergrass-Director of Research, Charlene Zarzeczny-Assistant Director/Stage Manager Cox Radio (pg.12): Roger Allen-Oldies Format Coordinator, Nancy Cambino-General Sales Manager, Brian Elam-General Sales Manager, Keith Lawless-General Sales Manager, Sharon Solieau-Account Manager, Norma Lopez-Account Manager 6205 PEACHTREE DUNWOODY ROAD ATLANTA, GEORGIA 30328 678-645-0000 WWW.COXENTERPRISES.COM S