COX COMMUNICATIONS ANNOUNCES FIRST QUARTER FINANCIAL RESULTS FOR 1995.ATLANTA--(BUSINESS WIRE)--May 11, 1995--Cox Communications, Inc. (NYSE NYSE See: New York Stock Exchange : COX) today reported financial results for the three months ended March 31, 1995. On February February: see month. 1, 1995, Cox Communications Cox Communications is a privately owned subsidiary of Cox Enterprises providing digital cable television and telecommunications services in the United States. It is the third-largest[2] cable television provider in the United States, serving more than 6. completed its acquisition of the cable television operations of The Times Mirror Company, resulting in the formation of the nation's fourth largest multiple system operator serving some 3.2 million customers. In commenting on the Company's results, Jim Robbins Rob·bins , Frederick Chapman 1916-2003. American microbiologist. He shared a 1954 Nobel Prize for work on the cultivation of the polio virus. , President and Chief Executive Officer, said, "Our first quarter results were right inline with our expectations. Strong basic customer growth continued positioning us well for our overall annual objectives. First quarter results reflected the February acquisition of Times Mirror's cable operations and the effect of the second round of rate regulations implemented last July July: see month. . "In addition, we recently announced the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of the Cox/Times Mirror programming venture. This restructuring resulted in an increase in our ownership to 50% from 33%. Our original financial commitment of $100 million remains unchanged. We are particularly excited about the opportunity to create value for our shareholders through this newly restructured partnership." RESULTS FROM OPERATIONS The historical results below include the financial results attributable to the Times Mirror acquisition from the February 1, 1995, date of acquisition. Revenues for the three months ended March 31, 1995, were $271.2 million, a 51% increase over revenues of $179.5 million for the same period in 1994. Operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. (operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. before depreciation and amortization) for the current quarter increased 46% to $102.8 million from $70.4 million for the same quarter in 1994. The Company reported operating income for the current quarter of $45.9 million, a 16% increase over operating income of $39.7 million for the same quarter in 1994. This strong growth was primarily attributable to the February acquisition of the Times Mirror cable television systems. Revenue growth was moderated by the July 1994 implementation of the second set of rate regulations. Equity in net losses of affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. for the current quarter was $17.8 million, a $9.2 million increase over the same quarter in 1994 due to the October October: see month. 1994 purchase of an additional 25% interest in SBC (1) (SBC Communications Inc., San Antonio, TX, www.sbc.com) A large, national telecommunications company that grew from a multitude of local and regional companies, including Southwestern Bell, Pacific Bell and Nevada Bell, into a single, unified brand by 2002. CableComms and ownership interests in Teleport Verb 1. teleport - transport by dematerializing at one point and assembling at another science fiction - literary fantasy involving the imagined impact of science on society transport - move something or somebody around; usually over long distances and several start-up Start-up The earliest stage of a new business venture. ventures. Interest expense for the quarter was $28.6 million, a $22.7 million increase over the same period in 1994 due to $1.364 billion of debt assumed in connection with the Times Mirror Acquisition. Net income for the three months ended March 31, 1995 was $1.8 million as compared to net income of $14.3 million for the three months ended March 31, 1994. PRO FORMA As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma RESULTS The pro forma results below include the financial results attributable to the Times Mirror acquisition for all periods. Revenues for the three months ended March 31, 1995, were $313.1 million, a 3% increase from revenues of $304.3 million for the same period in 1994. Basic customers at the end of the quarter were 3,196,184. This number reflects a change in the method used to measure customers that were in systems formerly owned by Times Mirror to a method consistent with that used by Cox. On a comparable basis, basic customers for the first quarter increased 4.7% over the same quarter of 1994. Regulated revenues grew 3.7% from the first quarter of 1994 to $215.8 million. The impact of rate regulation on regulated revenue growth was partially offset by rate increases instituted in many of Cox's systems on February 1, 1995. These rate increases reflected the allowable pass-through pass-through n. 1. An opening between two rooms, especially a shelved space between a kitchen and dining room that is used for passing food. 2. A route through which something is permitted to pass. 3. of inflation adjustments and external costs, primarily programming fee increases. A la carte revenues increased 13.3% to $9.1 million reflecting continued growth in this segment of revenue. Premium service revenues for the quarter were $47.9 million, down 4.7% from the comparable quarter of 1994 reflecting the January January: see month. 1995 launch of The Disney Channel  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. on the Cable Programming Services
("CPS (1) (Characters Per Second) The measurement of the speed of a serial printer or the speed of a data transfer between hardware devices or over a communications channel. CPS is equivalent to bytes per second. ") tier. The Disney Channel was previously offered as a
premium service. The introduction of The Disney Channel enhances the
customer value of the CPS tier and provides a comparative offering to
that provided by Direct Broadcast satellite competitors.As a result of the change in the Disney Channel service, first quarter premium service units decreased 4% to 1,852,365. Excluding the impact of The Disney Channel change, premium service revenues increased 5% due to unit growth in other premium services. Advertising revenues increased to $14.5 million for the quarter, a strong 14.6% improvement over the same period of 1994. This increase reflected solid gains in the automotive, retail and service industries as well as improved economic conditions in southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . Pay-per-view pay-per-view n. A service offered by cable television companies that allows subscribers to view special programs for an additional charge. pay revenues decreased 8.4% to $8.6 million due to a regional boxing event shown in the first quarter of 1994 that was not repeated in 1995. Operating cash flow for the first quarter was $122.8 million, a 1% increase over operating cash flow of $121.8 million for the first quarter of 1994 and a 3% increase over the fourth quarter of 1994. Operating cash flow as a percentage of revenues (operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: ) was 39.2% for the current quarter as compared to 40.0% in the first quarter of 1994. This decrease is attributable to the increased impact of rate regulation. The operating margin for the current quarter reflects an improvement of almost two percentage points from the 1994 fourth quarter margin of 37.3%. Revenues stated above include revenues from our satellite operations (Cox Satellite Programming and PRIMESTAR PrimeStar is a now-defunct U.S. direct broadcast satellite (DBS) organization formed in 1991. PrimeStar was the first DBS system in the United States but slowly declined in popularity with the arrival of DirecTV in 1994 and Dish Network in 1996. ) of $8.1 million for the current quarter, an 89.7% increase over revenues of $4.3 million for the same quarter of 1994. Operating cash flow includes a loss from our satellite operations of $657,000 for the current quarter as compared to income of $41,000 for the first quarter of 1994. Interest expense for the first quarter was $36.4 million, a $4.3 million increase over 1994 resulting from higher interest rates in 1995. Equity in net losses of affiliated companies increased $6.2 million due to ownership interests in Teleport and several start-up ventures, such as SBC CableComms. As a result of the factors above, net income decreased $1.6 million to $954,000. The pro forma information discussed above and attached herin does not reflect the pending Newport News Newport News, independent city (1990 pop. 170,045), SE Va., on the Virginia peninsula, at the mouth of the James River, off Hampton Roads, near Norfolk; inc. 1896. acquisition, which is expected to close in mid- mid- pref. Middle: midbrain. 1995. Reflecting this acquisition on a pro forma basis, revenues for the three months ended March 31, 1995 would have been $318.1 million and operating cash flow would have been $125.5 million. Cox Communications, Inc. is a fully-integrated, diversified diversified (di·verˑ·s , broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). communications company Communications Company is a communications unit of the United States Marine Corps. They are part of Combat Logistics Regiment 37 , 3rd Marine Logistics Group (3MLG) and III Marine Expeditionary Force (III MEF). The unit is based out of the Marine Corps Base Camp Smedley D. , serving some 3.2 million customers, with interests in U.S. and international cable distribution systems, programming, telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and technology. Internationally, Cox has a 50% stake in SBC CableComms, a cable/telephony business in the United Kingdom; and a 50% interest in STOFA A/S, a Danish cable and SMATV SMATV Satellite Master Antenna Television operating company operating company A business that engages in transactions with outsiders. . Programming interests include Discovery Communications, which operates The Discovery Channel and The Learning Channel in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and internationally; UK Gold, an entertainment channel in the United Kingdom featuring BBC BBC in full British Broadcasting Corp. Publicly financed broadcasting system in Britain. A private company at its founding in 1922, it was replaced by a public corporation under royal charter in 1927. and Thames Television Thames Television was a franchise holder of the British ITV television network, serving London on weekdays between 1968 and 1992. It was both a broadcaster and a producer of television programmes, making shows both for the local region it covered and for networking nationally programming; UK Living, a cable network in the United Kingdom primarily targeted to women; the Spanish-language network GEMS; BBC World
BBC World is the BBC's international news and current affairs television channel. It has the biggest audience of any BBC channel. and BBC Prime BBC Prime is the BBC's general entertainment TV channel in Europe, Africa and the Middle East. It was launched in January 1995 and began broadcasts in Africa in March 1999. It is funded by subscription available either as part of a satellite package or as a stand-alone channel. in Europe; Australian Australian pertaining to or originating in Australia. Australian bat lyssavirus disease see Australian bat lyssavirus disease. Australian cattle dog a medium-sized, compact working dog used for control of cattle. Information Media Pty Limited in Australia; the Outdoor Life Channel; and Speedvision Network. Cox Communications has a comprehensive telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. strategy that includes investments in the Sprint Telecommunications Venture, a partnership with three cable companies and the Sprint Corporation, to develop advanced telephony services; and Teleport, the largest alternative access provider in the U.S. (See attached financial information.) -0-
Cox Communications, Inc.
Consolidated Statements of Income
(Unaudited)
(Thousands of Dollars)
Pro Forma
Three Months Ended Three Months Ended
March 31 March 31
1994 1995 1994 1995
Revenues:
Regulated $121,557 $186,278 $208,038 $215,796
A la carte 849 6,558 8,051 9,126
Premium service 33,465 42,487 50,228 47,877
Pay-per-view 4,697 7,071 9,405 8,612
Advertising 7,391 12,521 12,664 14,516
Satellite 4,288 8,136 4,288 8,136
Other 7,217 8,168 11,667 9,032
Total revenues 179,464 271,219 304,341 313,095
Costs and expenses:
Operating 61,111 103,326 101,665 118,119
Selling, general and
administrative 47,958 65,064 80,887 72,163
Operating cash flow 70,395 102,829 121,789 122,813
Depreciation and
amortization 30,689 56,901 65,889 68,703
Operating income 39,706 45,928 55,900 54,110
Interest expense (5,928) (28,622) (32,075) (36,377)
Equity in net losses
of affiliated
companies (8,573) (17,819) (11,653) (17,819)
Other, net 1,732 3,226 2,267 3,389
Income before income
taxes 26,937 2,713 14,439 3,303
Income taxes 12,593 947 11,915 2,349
Net income $ 14,344 $ 1,766 $ 2,524 $ 954
Cox Communications, Inc.
Consolidated Balance Sheets
December 31 March 31
1994 1995
(unaudited)
(Thousands of Dollars)
Assets
Cash $ 3,346 $ 6,373
Accounts and notes receivable, less
allowance for doubtful accounts
of $3,993 and $5,803 41,875 92,263
Net plant and equipment 664,265 1,439,282
Investments 568,990 723,623
Intangible assets 542,678 2,610,807
Other assets 53,518 72,918
Total $1,874,672 $4,945,266
Liabilities and Shareholders' Equity Accounts payable and accrued expenses $ 88,833 $ 141,348 Deferred income 16,213 43,941 Deferred income taxes 97,092 400,730 Other liabilities 49,895 99,747 Debt 750,000 2,357,810 Amounts due to Cox Enterprises, Inc. 37,813 91,049 Shareholders' equity: Preferred stock, $1 par value; 5,000,000 shares authorized and none issued - - Class A Common stock, $1 par value; 286,000,000 shares authorized; 236,201,085 shares issued and outstanding - 236,201 Class C Common stock, $1 par value; 14,000,000 shares authorized; 13,798,896 shares issued and outstanding - 13,799 Common stock, $1 par value; 1,000 shares authorized and 100 shares outstanding 1 - Additional paid-in capital 670,495 1,393,487 Retained earnings 163,839 165,605 Foreign currency translation adjustment (1,221) 1,555 Net unrealized gain (loss) on securities 1,712 (6) Total shareholders' equity 834,826 1,810,641 Total $1,874,672 $4,945,266
Cox Communications, Inc.
Consolidated Statements of Cash Flows
Three Months
Ended March 31
1994 1995
(unaudited)
(Thousands of dollars)
Cash flows from operating activities Net income $ 14,344 $ 1,768 Items not requiring cash: Depreciation and amortization 30,689 56,901 Equity in net losses and undistributed earnings of affiliated companies 8,573 17,819 Deferred income taxes (268) 2,441 Decrease in accounts receivable 3,806 2,824 Decrease in accounts payable and accrued expenses (16,578) (18,083) (Increase) decrease in prepaid expenses (12,092) 1,579 Other, net (3,912) (5,251) Net cash provided by operating activities 24,562 59,996 Cash flows from investing activities Capital expenditures (34,919) (57,806) Acquisitions, net of cash acquired - 26,709 Investments in affiliated companies (29,456) (139,992) Other, net 1,783 5,439 Net cash used in investing activities (62,592) (165,650) Cash flows from financing activities Revolving credit repayment, net - (7,199) Increase in amounts due to CEI 21,655 94,227 Increase in bank overdrafts 10,869 21,653 Net cash provided by financing activities 32,524 108,681 Net increase (decrease) in cash (5,506) 3,027 Cash at beginning of period 14,244 3,346 Cash at end of period $ 8,738 $ 6,373
Cox Communications, Inc.
Summary of Operating Statistics and Investments
Operating Statistics - U.S. Broadband Distribution
March 31, 1995
Homes Passed 4,963,756 Basic Subscribers 3,196,184 Basic Penetration 64.4% Premium Service Units 1,852,365 Premium Penetration 58.0%
U.S. Broadband International Broadband
Distribution Investments Distribution Investments
3.2 million customers in 32 clusters (a) 100.0% SBC CableComms (U.K.) 50.0% 154,000 customers in TWC Cable 50.0% STOFA (Denmark) 50.0%
(a) 3.3 million customers including Cox's pro rata share of TWC
Cable.
Telecommunications and Technology Investments
Omaha MTA 100.0% TCG San Diego 53.7% PCS Southern WirelessCo. 15.0% California MTA 40.0%(a) ICTV 35.4% PhillieCo. 17.6% ISD (CableMaster) 25.5% Teleport Communications National Cable Group (TCG) 30.1% Communications 12.5% TCG Hartford 7.7% PRIMESTAR Partners 10.4% TCG Los Angeles 9.6% StarSight Telecast 10.6% TCG Omaha 65.0% Telecorp Systems 24.5% TCG Phoenix 56.2%
(a) Adjusted for pending transactions
U.S. Programming Investments International Programming Investments DCR Associates 14.0% Australia Information Discovery Communications 24.6% Network 27.5% E! Entertainment 10.5% BBC Europe 10.0% Home Shopping Network 0.1% Discovery International 24.6% Television Food Network 1.9% GEMS 50.0% The Sunshine Network 5.3% UK Gold 37.9% Cox Times Mirror UK Living 49.6% Programming Venture 50.0% Outdoor Life Channel 33.3% Speedvision Network 66.7% Turner Broadcasting System 0.1% Viewer's Choice 20.0% CONTACT: Cox Communications, Inc., Atlanta Dallas Clement Clement, in the Bible Clement, in Philippians, one of Paul's coworkers. He is traditionally identified with St. Clement of Rome, the likely author of a letter written from there to the Corinthian church in c.A.D. 96. , 404/843-5677 (analysts and investors) Ellen East, 404/843-5854 (financial and trade press) |
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