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WIKI ANALYSIS| This company is or has gone private. Information about the company may be limited and outdated. |
Cox Radio Cox Radio is a radio broadcasting company that owns 86 radio stations covering 19 markets. Many of the company's stations are located in growing metropolitan areas in the Sun Belt region of the country. This includes Atlanta, Birmingham, Houston, Jacksonville, Miami, Orlando, San Antonio and Tampa.
Business Financials
Cox Radio's streamlined management and cluster advertising philosophy allow them to remain profitable during a turbulent time in Radio Broadcasting. They are an indirect majority-owned subsidiary of Cox Enterprises, Inc. based in Atlanta, GA. U.S. Cox Enterprises currently own 67% of the common stock of CXR, and holds roughly 95% of the voting power. Over the past year Cox Radio's revenue increased 1% compared to the industry's which fell 2% in 2007. In local add revenue Cox was up 2% even though their peers suffered a decline of 2%. In 2007 Cox Radio earned $114 million versus $113 million in 2006. Cox Radio is currently threatened by the general downturn in radio advertising and the fall of radio listeners, due to the IPod Effect, failure to keep up with market research and target audience data of internet. The company uses acquisitions, dispositions, and exchanges to manage its portfolio of radio stations.
Selected Consolidated Financial Data (amounts in millions, except per Share data)
| Statements of income Data | 2007 | 2006 | 2005 | 2004 | 2003 |
|---|---|---|---|---|---|
| Net Revenues | $ 444.9 | $ 440.5 | $ 437.9 | $ 438.2 | $ 425.9 |
| Cost of Services | 94.1 | 86.4 | 86.3 | 98.2 | 95.6 |
| Selling, General and Administrative | 176.4 | 171.4 | 169.8 | 162.6 | 162.2 |
| Corporate General and Administrative | 20.3 | 19.9 | 19.4 | 17.7 | 16.3 |
| Depreciation and Amortization | 11.2 | 11.2 | 11.2 | 11.8 | 11.8 |
| (Gain) Loss on Loan Guarantee | - | - | (0.1) | 3.1 | - |
| Impairment of Intangible Assets | 117.1 | 176.3 | 14.4 | _ | .3 |
| Other (losses on sales of assets and radio stations) | .2 | .8 | .1 | 1.1 | .6 |
| Operating Income (loss) | 25.6 | (25.5) | 136.8 | 143.7 | 139.1 |
| Interest Expense | 21.1 | 25.3 | 27.4 | 30.4 | 33.6 |
| Net Income (loss) | 1.9 | (24.4) | 61.3 | 68.0 | 66.6 |
| Net Income (loss) per common share basic | 0.02 | (0.25) | 0.61 | 0.68 | 0.66 |
| Cash and Cash Equivalents | $ 2.0 | $ 4.4 | $ 3.5 | $ 3.2 | $ 4.2 |
| Total Assets | 1,997.4 | 2,117.9 | 2,266.1 | 2,281.9 | 2,278.8 |
| Total Debt | 336.6 | 378.0 | 414.9 | 468.3 | 528.5 |
Revenue
Quarterly Results in Millions
| FY (12/07) | FY (12/06) | FY (12/05) | |
|---|---|---|---|
| 1st Quarter | 100.8 | 97.6 | 98.6 |
| 2nd Quarter | 118.0 | 117.2 | 117.3 |
| 3rd Quarter | 111.8 | 112.7 | 113.2 |
| 4th Quarter | 114.3 | 113.0 | 108.9 |
| Total | 444.9 | 440.5 | 437.9 |
Earnings Per Share - Quarterly Results
| FY(12/07) | FY(12/06) | Fy(12/05) | |
|---|---|---|---|
| 1st Quarter | $0.14 | $0.14 | $0.14 |
| 2nd Quarter | $0.21 | $0.27 | $0.20 |
| 3rd Quarter | $0.22 | $0.25 | $0.21 |
| 4th Quarter | -$0.57 | -$0.93 | -$0.06 |
| Total | $0.00 | -$0.27 | $0.61 |
Trends and Forces
The Ipod
The IPod Effect has done major damage to the advertising market of Radio Broadcasting. The number of listeners tuning into radio has slid continuously as the Ipod rises to replace it. By shrinking the audience pool advertising can reach less people and is being replaced with advertisers moving funding to advertise in other mediums.
Concentrated Focus on the Atlanta Market
Stations located in Atlanta represents 25,24, and 23 of total revenues for the years of 2007, 2006, and 2005 respectively. This leaves Cox Radio open to lose of audience share and advertising revenue to other stations, satellite radio, and Internet. As competition increases the price of advertising will decrease resulting in less income for Cox Radio. [3]
Seasonality
Within the Radio industry, advertising revenue tends to fluctuate. Cox radio's first quarter revenues are usually the lowest.
Streamlined Mangement
This can be both a positive an a negative. By having a small management team and concentrated offices Cox Radio has slimmed down their expenses as far as Real Estate and
Cox Radio has a Price to Cash Flow ratio more than 25% grater then the industry average. [4] This is considered an important financial barometer. Their Operating cash flow
- ↑ http://www.sec.gov/Archives/edgar/data/1018522/000119312508049788/d10k.htm#toc
- ↑ http://moneycentral.msn.com/investor/invsub/results/hilite.asp?Symbol=CXR
- ↑ http://www.sec.gov/Archives/edgar/data/1018522/000119312508049788/d10k.htm
- ↑ http://moneycentral.msn.com/investor/alerts/glossary.asp?TermID=52
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