<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(MARK ONE)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM __________ TO __________
COMMISSION FILE NUMBER 1-12187
[COX RADIO, INC.]
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 58-1620022
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER IDENTIFICATION NO.)
INCORPORATION OR ORGANIZATION)
1400 LAKE HEARN DRIVE, ATLANTA, GEORGIA 30319
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
Registrant's telephone number, including area code: (404) 843-5000
---------------
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes [X] No [ ]
---------------
Indicate the number of shares outstanding of each of the issuer's
classes of Common Stock, as of the latest practicable date.
There were 9,062,661 shares of Class A Common Stock outstanding as of
July 31, 1999.
There were 19,577,672 shares of Class B Common Stock outstanding as of
July 31, 1999.
<PAGE> 2
COX RADIO, INC.
FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 1999
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
PART I - FINANCIAL INFORMATION
<S> <C> <C>
ITEM 1. FINANCIAL STATEMENTS................................................ 3
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS........................................... 12
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.......... 18
PART II - OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS ................ 19
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.................................... 20
SIGNATURES................................................................... 21
</TABLE>
2
<PAGE> 3
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
COX RADIO, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1999 1998
--------- -----------
(AMOUNTS IN THOUSANDS, EXCEPT
PER SHARE DATA)
<S> <C> <C>
ASSETS
Current Assets:
Cash and cash equivalents ...................................... $ 6,461 $ 6,479
Accounts receivable, less allowance for doubtful accounts
of $2,774 and $2,862, respectively .......................... 64,256 58,190
Prepaid expenses and other current assets ...................... 4,764 3,430
--------- --------
Total current assets ........................................ 75,481 68,099
Plant and equipment, net ......................................... 56,150 51,886
Intangible assets, net ........................................... 728,811 590,686
Amounts due from Cox Enterprises, Inc. ........................... -- 30,292
Station investment notes receivable .............................. 850 7,250
Other assets ..................................................... 9,722 4,899
--------- --------
Total assets ................................................ $ 871,014 $753,112
========= ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses .......................... $ 21,281 $ 19,245
Accrued salaries and wages ..................................... 5,226 4,570
Accrued interest ............................................... 1,572 1,633
Income taxes payable ........................................... 8,502 2,686
Other current liabilities ...................................... 992 1,018
--------- --------
Total current liabilities ................................... 37,573 29,152
Notes payable .................................................... 350,266 300,235
Deferred income taxes ............................................ 127,117 110,693
Amounts due to Cox Enterprises, Inc. ............................. 5,019 --
--------- --------
Total liabilities ........................................... 519,975 440,080
--------- --------
Commitments and contingencies (Note 3)
Shareholders' Equity:
Preferred stock, $1.00 par value: 5,000,000 shares authorized,
None outstanding ............................................ -- --
Class A common stock, $1.00 par value; 70,000,000 shares
Authorized; 9,050,035 and 8,971,955 shares outstanding at
June 30, 1999 and December 31, 1998, respectively ........... 9,050 8,972
Class B common stock, $1.00 par value; 45,000,000 shares
Authorized; 19,577,672 shares outstanding at June 30, 1999
and December 31, 1998 ....................................... 19,578 19,578
Additional paid-in capital ..................................... 256,289 253,207
Retained earnings .............................................. 67,773 31,275
Class A common stock held in treasury (39,952 shares at cost) .. (1,651) --
--------- --------
Total shareholders' equity .................................. 351,039 313,032
--------- --------
Total liabilities and shareholders' equity .................. $ 871,014 $753,112
========= ========
</TABLE>
See notes to consolidated financial statements.
3
<PAGE> 4
COX RADIO, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
----------------------- -------------------------
1999 1998 1999 1998
-------- -------- --------- ---------
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
<S> <C> <C> <C> <C>
NET REVENUES:
Local ................................. $ 58,181 $ 51,059 $ 103,391 $ 89,604
National .............................. 18,506 17,117 32,250 29,900
Other ................................. 1,898 985 3,317 1,717
-------- -------- --------- ---------
Total revenues ...................... 78,585 69,161 138,958 121,221
COSTS AND EXPENSES:
Operating ............................. 17,755 16,445 32,621 29,539
Selling, general and administrative ... 30,144 28,485 55,947 50,884
Corporate general and administrative .. 2,409 2,057 4,595 3,932
Depreciation and amortization ......... 6,856 5,593 13,214 10,954
-------- -------- --------- ---------
OPERATING INCOME ......................... 21,421 16,581 32,581 25,912
OTHER INCOME (EXPENSE):
Interest income .......................... -- 184 466 211
Interest expense ......................... (5,611) (4,034) (10,457) (7,878)
Gain on sale of radio stations ........... 39,802 -- 39,802 --
Other - net .............................. (62) (92) (131) (150)
-------- -------- --------- ---------
INCOME BEFORE INCOME TAXES ............... 55,550 12,639 62,261 18,095
Income taxes ............................. 22,876 6,294 25,763 8,975
-------- -------- --------- ---------
NET INCOME ............................... $ 32,674 $ 6,345 $ 36,498 $ 9,120
======== ======== ========= =========
Basic net income per common share ........ $ 1.14 $ .22 $ 1.28 $ .32
======== ======== ========= =========
Diluted net income per common share ...... $ 1.13 $ .22 $ 1.26 $ .32
======== ======== ========= =========
Weighted average basic common shares
outstanding .............................. 28,610 28,448 28,593 28,438
======== ======== ========= =========
Weighted average diluted common shares
outstanding .............................. 28,965 28,763 28,929 28,735
======== ======== ========= =========
</TABLE>
See notes to consolidated financial statements.
4
<PAGE> 5
COX RADIO, INC.
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
(UNAUDITED)
<TABLE>
<CAPTION>
CLASS A CLASS B
COMMON STOCK COMMON STOCK ADDITIONAL
---------------- --------------- PAID-IN RETAINED TREASURY
SHARES AMOUNT SHARES AMOUNT CAPITAL EARNINGS STOCK TOTAL
------ ------ ------ ------ ------- -------- ----- -----
(AMOUNTS IN THOUSANDS)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
BALANCE AT DECEMBER 31, 1998 .............. 8,972 $8,972 19,578 $19,578 $253,207 $31,275 -- $ 313,032
Net income .............................. -- -- -- -- -- 36,498 -- 36,498
Issuance of Class A common stock
related to incentive plans
(including tax benefit on stock
options exercised) ................... 78 78 -- -- 3,082 -- -- 3,160
Repurchase of Class A common stock ...... -- -- -- -- -- -- $(1,651) (1,651)
----- ------ ------ ------- -------- ------- ------- ---------
BALANCE AT JUNE 30, 1999 .................. 9,050 $9,050 19,578 $19,578 $256,289 $67,773 $(1,651) $ 351,039
===== ====== ====== ======= ======== ======= ======= =========
</TABLE>
See notes to consolidated financial statements.
5
<PAGE> 6
COX RADIO, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30,
------------------------
1999 1998
--------- --------
(AMOUNTS IN THOUSANDS)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income ............................................ $ 36,498 $ 9,120
Items not requiring cash:
Depreciation ........................................ 3,259 2,579
Amortization ........................................ 9,955 8,375
Deferred income taxes ............................... 17,106 1,770
Gain on sale of radio stations ...................... (39,802) --
Increase in accounts receivable ....................... (6,066) (5,405)
Increase in accounts payable and accrued expenses ..... 1,753 993
Increase in accrued salaries and wages ................ 656 622
Decrease in accrued interest .......................... (61) (127)
Increase in taxes payable ............................. 7,424 1,295
Other, net ............................................ (2,301) (2,120)
--------- --------
Net cash provided by operating activities ...... 28,421 17,102
--------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures .................................. (3,201) (3,893)
Acquisitions, net of cash acquired .................... (112,587) (69,370)
Decrease in station investment notes receivable ....... 6,400 --
Increase in other long-term assets .................... (5,135) (1,561)
Increase in amounts due to (from) CEI ................. 35,311 (9,499)
Other, net ............................................ 75 15
--------- --------
Net cash used in investing activities .......... (79,137) (84,308)
--------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings of debt ................................ 50,031 65,375
Proceeds from stock options exercised ................. 1,552 845
Repurchase of Class A common stock .................... (1,651) --
Increase in book overdrafts ........................... 766 1,888
--------- --------
Net cash provided by financing activities ..... 50,698 68,108
--------- --------
Net increase (decrease) in cash and cash equivalents .. (18) 902
Cash and cash equivalents at beginning of period ...... 6,479 6,218
--------- --------
Cash and cash equivalents at end of period ............ $ 6,461 $ 7,120
========= ========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the year for:
Interest ........................................ $ 10,518 $ 8,005
Income taxes .................................... $ 1,236 $ 5,785
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING ACTIVITIES:
Value of businesses exchanged ................... $ 55,000 $ --
</TABLE>
See notes to consolidated financial statements.
6
<PAGE> 7
COX RADIO, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 1999
1. BASIS OF PRESENTATION AND OTHER INFORMATION
Cox Radio, Inc. is a leading national radio broadcast company whose
business, which constitutes one reportable segment, is devoted to acquiring,
developing and operating radio stations located throughout the United States.
Cox Enterprises, Inc. indirectly owns approximately 68% of the Common Stock of
Cox Radio.
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnote disclosures required by generally accepted accounting principles for
complete financial statements. In the opinion of management, the financial
statements reflect all adjustments considered necessary for a fair statement of
the results of operations and financial position for the interim periods
presented. All such adjustments are of a normal, recurring nature. These
unaudited consolidated interim financial statements should be read in
conjunction with the audited consolidated financial statements for the year
ended December 31, 1998 and notes thereto contained in Cox Radio's Annual Report
on Form 10-K filed with the Securities and Exchange Commission (Commission File
No. 1-12187).
The results of operations for the three and six months ended June 30,
1999 are not necessarily indicative of the results to be expected for the year
ending December 31, 1999 or any other interim period.
2. ACQUISITIONS AND DISPOSITIONS OF BUSINESSES
During the past several years, Cox Radio has actively managed its
portfolio of radio stations through selected acquisitions, dispositions and
swaps, as well as the use of local marketing agreements, or LMA's, and joint
sales agreements, or JSA's. All of the consummated and pending transactions have
been or will be accounted for as purchase transactions. Specific transactions
entered into or consummated by Cox Radio during the six months ended June 30,
1999 are discussed below.
In January 1999, Cox Radio acquired the assets of radio station WSUN-FM
(formerly WLVU-FM) serving the Tampa-St. Petersburg, Florida market in exchange
for the assets of WSUN-AM in Tampa-St. Petersburg, Florida and approximately $17
million. Prior to the acquisition, Cox Radio had been operating WSUN-FM pursuant
to an LMA since September 1998.
In January 1999, Cox Radio entered into an agreement to acquire KRTQ-FM
(formerly KTFX-FM) in Tulsa, Oklahoma for $3.5 million. Cox Radio also entered
into a Station Investment Note Receivable with the seller for $0.9 million which
is collateralized by substantially all the assets of the station. Cox Radio has
been operating this station pursuant to an LMA since January 1999. Pending
certain regulatory approvals, Cox Radio expects to consummate this acquisition
in December 1999.
On December 21, 1998 and March 1, 1999, Cox Radio purchased shares of
common stock of USA Digital Radio, Inc., a developer of digital radio
broadcasting technology, for a total purchase price of $2.5 million. Cox Radio
accounts for this investment under the cost method.
7
<PAGE> 8
2. ACQUISITIONS AND DISPOSITIONS OF BUSINESSES (CONTINUED)
In May 1999, Cox Radio acquired radio stations WVEZ-FM and WSFR-FM and
the option to purchase WMHX-FM serving the Louisville, Kentucky market and radio
stations WFJO-FM, WHPT-FM and WDUV-FM (formerly WTBT-FM) serving the Tampa-St.
Petersburg, Florida market in exchange for the Company's radio stations WYYY-FM,
WBBS-FM, WWHT-FM, WHEN-AM and WSYR-AM serving the Syracuse, New York market,
plus additional cash consideration of approximately $94 million, resulting in a
pre-tax gain of approximately $39.8 million. In June 1999, Cox Radio exercised
its option to purchase WMHX-FM in Louisville for a purchase price of
approximately $2 million. Pending regulatory approvals, Cox Radio expects to
consummate this transaction in the second half of 1999. Cox Radio has been
operating the station under a JSA since May 1999. In connection with obtaining
regulatory approvals for these transactions, Cox Radio has agreed to divest
ownership of WRVI-FM and WLSY-FM serving the Louisville, Kentucky market. Such
stations have been transferred to a trust for the benefit of Cox Radio pending
sale to a third party. In May 1999, Cox Radio and the trust entered into an
agreement for the sale of WRVI-FM and WLSY-FM for consideration of $5.0 million.
Pending regulatory approvals, Cox Radio expects to consummate this transaction
in the second half of 1999.
In May 1999, Cox Radio entered into an agreement to acquire WNGC-FM,
licensed in Athens, Georgia for approximately $78 million. Pending regulatory
approvals, Cox Radio expects to consummate this acquisition in the second half
of 1999.
In June 1999, Cox Radio disposed of the assets of WPTW-AM in Dayton,
Ohio for consideration of $0.1 million.
In August 1999, Cox Radio consummated its acquisition of WEDA-FM in
Homewood, Alabama serving the Birmingham, Alabama market for a purchase price of
approximately $5.5 million and the assumption of debt of approximately $0.2
million. Prior to the acquisition, Cox Radio had been operating this station
under an LMA since November 1998.
The following unaudited pro forma summary of operations presents the
consolidated results of operations as if all consummated and pending
transactions had occurred at the beginning of the periods presented and does not
purport to be indicative of what would have occurred had these transactions been
made as of those dates or of results which may occur in the future.
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------- ----------------------
1999 1998 1999 1998
---- ---- ---- ----
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<S> <C> <C> <C> <C>
Net revenues ..................................... $ 79,004 $ 71,430 $140,117 $126,392
Net income ....................................... 7,770 4,075 9,680 4,190
======== ======== ======== ========
Basic pro forma net income per common share ...... $ .27 $ .14 $ .34 $ .15
======== ======== ======== ========
Diluted pro forma net income per common share .... $ .27 $ .14 $ .33 $ .15
======== ======== ======== ========
Basic pro forma shares outstanding ............... 28,610 28,448 28,593 28,438
======== ======== ======== ========
Diluted pro forma shares outstanding ............. 28,965 28,763 28,929 28,735
======== ======== ======== ========
</TABLE>
8
<PAGE> 9
3. COMMITMENTS AND CONTINGENCIES
On March 7, 1997, Cox Radio entered into a $300 million, five-year,
senior, unsecured revolving credit facility with certain guarantors and banks,
including Texas Commerce Bank National Association, as Administrative Agent,
Nationsbank of Texas, N.A., as Syndications Agent, and Citibank, N.A., as
Documentation Agent. The loan proceeds were used to finance the payment of the
consideration payable for the acquisition of NewCity Communications, Inc. in
April 1997, repay certain secured debt of NewCity Communications and finance
certain other acquisitions. The remaining credit availability may be used to
finance additional acquisitions and other corporate purposes. The bank credit
facility has restrictions on the payment of dividends, certain mergers,
consolidations or dispositions of assets and establishes limitations on, among
other things, additional indebtedness and transactions with affiliates.
At June 30, 1999, Cox Radio had approximately $150 million of
outstanding indebtedness under the bank credit facility and had approximately
$150 million available under the bank credit facility.
On May 26, 1998, Cox Radio issued and sold an aggregate of $200 million
principal amount of notes in an offering exempt from registration under Rule
144A of the Securities Act of 1933, as amended. Pursuant to the Registration
Rights Agreement dated as of May 26, 1998 among Cox Radio, its wholly owned
subsidiaries WSB, Inc. and WHIO, Inc. (each a guarantor of the notes),
NationsBanc Montgomery Securities LLC, Chase Securities, Inc., and J.P. Morgan
Securities, Inc., on December 14, 1998, Cox Radio consummated an exchange offer
pursuant to which Cox Radio exchanged $200 million principal amount of the notes
originally sold on May 26, 1998, for an aggregate of $200 million principal
amount of notes (the terms and form of which are the same in all material
respects as the original notes, except as to restrictions on transfer) which
have been registered under the Securities Act of 1933. As a result of the
mergers of WSB, Inc. and WHIO, Inc. into Cox Radio, WSB, Inc. and WHIO, Inc. are
no longer guarantors of the notes. As a result of the transfer of certain
Federal Communications Commission licenses, permits and authorizations held by
Cox Radio to CXR Holdings, Inc., a wholly-owned subsidiary of Cox Radio, CXR
Holdings became a guarantor of the notes on February 1, 1999.
Cox Radio has entered into interest rate swap agreements with certain
lenders providing bank financing under the bank credit facility. Pursuant to the
interest rate swap agreements, Cox Radio has exchanged its floating rate
interest obligations on an aggregate of $100 million in principal at an average
fixed rate of 6.23% per annum having an average maturity of 6.25 years. The
fixing of interest rates for this period reduces Cox Radio's exposure to the
uncertainty of floating interest rates. The differential paid or received on the
interest rate swap agreements is recognized as an adjustment to interest
expense. The counterparties to these interest rate swap agreements are a diverse
group of major financial institutions. Cox Radio is exposed to credit loss in
the event of nonperformance by these counterparties. However, Cox Radio does not
anticipate nonperformance by the other parties, and no material loss would be
expected from their nonperformance. The fair value of the interest rate swap
agreements was not recognized in the consolidated financial statements since
they are accounted for as hedges. The estimated fair value of the interest rate
swap agreements, based on current market rates, approximated a net payable of
$39,000 at June 30, 1999 and $4.6 million at December 31, 1998.
9
<PAGE> 10
4. GUARANTOR FINANCIAL INFORMATION
CXR Holdings, a wholly-owned subsidiary of Cox Radio, is the guarantor
of Cox Radio's $200 million notes pursuant to a full and unconditional
guarantee. Separate financial statements and other disclosures concerning CXR
Holdings are not presented because CXR Holdings is comprised primarily of
non-operating assets, including Federal Communications Commission licenses,
permits and authorizations and cash royalties, and such separate financial
statements and other disclosures would not be meaningful to investors. The
following table sets forth condensed financial information of CXR Holdings as of
June 30, 1999 and for the three and six month periods ended June 30, 1999.
Comparative condensed financial information as of December 31, 1998 and for the
three and six month periods ended June 30, 1998, is presented on a pro forma
basis as though CXR Holdings had been formed on January 1, 1998. CXR Holdings
was formed on September 11, 1998, and Cox Radio transferred certain of its
Federal Communications Commission licenses, permits and authorizations to CXR
Holdings as of January 1, 1999. CXR Holdings became guarantor of the notes on
February 1, 1999. Pro forma adjustments consist solely of the recognition of
royalty income associated with royalty fees that would have been charged to Cox
Radio had CXR Holdings been formed and the corresponding assets transferred on
January 1, 1998. All other comparative financial information consists of actual
historical balances of Cox Radio as of December 31, 1998 and for the three and
six month periods ended June 30, 1998, respectively.
<TABLE>
<CAPTION>
AS OF
JUNE 30, DECEMBER 31,
1999 1998
(ACTUAL) (PRO FORMA)
---------------------------
(AMOUNTS IN THOUSANDS)
<S> <C> <C>
ASSETS:
Accounts receivable .......................... $ 13,522 $ 25,656
Intangible assets, net ....................... 303,961 176,404
Other assets ................................. 4 --
-------- --------
Total assets ................................. $317,487 $202,060
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Accrued liabilities .......................... $ 30 $ --
Shareholder's equity ......................... 317,457 202,060
-------- --------
Total liabilities and shareholder's equity ... $317,487 $202,060
======== ========
</TABLE>
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
1999 1998 1999 1998
(ACTUAL) (PRO FORMA) (ACTUAL) (PRO FORMA)
----------------------------------------------------------------
(AMOUNTS IN THOUSANDS)
<S> <C> <C> <C> <C>
Royalty income ............................... $ 6,652 $ 6,412 $ 13,522 $ 12,409
Depreciation and amortization ................ (1,092) (938) (2,252) (1,615)
------- ------- -------- --------
Operating Income ............................. $ 5,560 $ 5,474 $ 11,270 $ 10,794
======= ======= ======== ========
</TABLE>
10
<PAGE> 11
5. EARNINGS PER COMMON SHARE AND CAPITAL STRUCTURE
<TABLE>
<CAPTION>
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
--------------------------- -------------------------
1999 1998 1999 1998
---- ---- ---- ----
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
<S> <C> <C> <C> <C>
NET INCOME ................................................... $ 32,674 $ 6,345 $ 36,498 $ 9,120
======== ======== ======== ========
BASIC EPS
Weighted-average common shares outstanding ................... 28,610 28,448 28,593 28,438
======== ======== ======== ========
Basic net income per common share ............................ $ 1.14 $ .22 $ 1.28 $ .32
======== ======== ======== ========
DILUTED EPS
Weighted-average common shares outstanding - basic ........... 28,610 28,448 28,593 28,438
Shares issuable on exercise of dilutive options ............. 693 692 693 692
Shares assumed to be purchased with proceeds from options ... (521) (526) (540) (542)
Shares issuable pursuant to employee stock purchase plan .... 186 186 186 186
Shares assumed to be purchased with proceeds from
employee stock purchase plan ............................... (3) (37) (3) (39)
-------- -------- -------- --------
Shares applicable to diluted EPS ............................. 28,965 28,763 28,929 28,735
======== ======== ======== ========
Diluted net income per common share .......................... $ 1.13 $ .22 $ 1.26 $ .32
======== ======== ======== ========
</TABLE>
In January 1999, Cox Radio purchased 39,952 shares of previously
restricted Class A common stock for cash consideration of approximately $1.7
million.
11
<PAGE> 12
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the
accompanying unaudited historical Consolidated Statements of Income for the
three and six month periods ended June 30, 1999 and 1998.
This report contains forward-looking statements that are subject to
risks and uncertainties. Forward-looking statements include, but may not be
limited to, the information regarding future cash requirements of Cox Radio,
statements regarding Year 2000 issues (including problems that may arise on the
part of third parties), and statements regarding the intent, belief or current
expectations of Cox Radio and its management. For such statements, Cox Radio
claims the protection of the safe harbor for forward-looking statements
contained in Section 21E of the Securities Exchange Act of 1934, as amended. Cox
Radio's results could differ materially from those discussed in each
forward-looking statement due to various factors which are outside Cox Radio's
control, including competition for audience share and advertising revenue from
other radio stations, electronic and print media and new media technologies and
governmental regulation of the radio broadcasting industry. For a more detailed
discussion of these factors and others, see the Risk Factors section of Cox
Radio's Annual Report on Form 10-K (Commission File No. 1-12187).
GENERAL
Cox Radio is a leading national radio broadcast company whose business,
which constitutes one reportable segment, is devoted to acquiring, developing
and operating radio stations located throughout the United States. Cox
Enterprises indirectly owns approximately 68% of the Common Stock of Cox Radio
through its wholly-owned subsidiary, Cox Broadcasting, Inc.
The performance of a radio station group, such as Cox Radio, is
customarily measured by its ability to generate Broadcast Cash Flow, EBITDA and
After-Tax Cash Flow. Broadcast Cash Flow is defined as operating income plus
depreciation and amortization and corporate general and administrative expenses.
EBITDA is defined as operating income plus depreciation and amortization.
After-Tax Cash Flow is defined as net income (loss) before extraordinary items
plus depreciation, amortization and deferred tax expense (benefit). Although
Broadcast Cash Flow, EBITDA and After-Tax Cash Flow are not recognized under
generally accepted accounting principles, or GAAP, they are accepted by the
broadcasting industry as generally recognized measures of performance and are
used by analysts who report publicly on the condition and performance of
broadcasting companies. For the foregoing reasons, Cox Radio believes that these
measures will be useful to investors. However, Broadcast Cash Flow, EBITDA or
After-Tax Cash Flow should not be considered to be an alternative to operating
income as determined in accordance with GAAP, an alternative to cash flows from
operating activities (as a measure of liquidity) or an indicator of Cox Radio's
performance under GAAP.
The primary source of Cox Radio's revenues is the sale of local and
national advertising. Historically, approximately 73% and 25% of Cox Radio's
gross revenues have been generated from local and national advertising,
respectively. Cox Radio's most significant station operating expenses are
employees' salaries and benefits, commissions, programming expenses and
advertising and promotional expenditures.
Cox Radio's revenues vary throughout the year. As is typical in the
radio broadcasting industry, Cox Radio's revenues and broadcast cash flows are
typically lowest in the first quarter and higher in the second and fourth
quarters. Cox Radio's operating results in any period may be affected by the
incurrence of advertising and promotional expenses that do not necessarily
produce commensurate revenues until the impact of the advertising and promotion
is realized in future periods.
12
<PAGE> 13
ACQUISITIONS AND DISPOSITIONS
During the past several years, Cox Radio has actively managed its
portfolio of radio stations through selected acquisitions, dispositions and
swaps, as well as the use of LMA's and JSA's. All of the consummated and pending
transactions have been or will be accounted for as purchase transactions.
Specific transactions entered into or consummated by Cox Radio during the six
months ended June 30, 1999, are discussed below.
In January 1999, Cox Radio acquired the assets of radio station WSUN-FM
(formerly WLVU-FM) serving the Tampa-St. Petersburg, Florida market in exchange
for the assets of WSUN-AM in Tampa-St. Petersburg, Florida and approximately $17
million. Prior to the acquisition, Cox Radio had been operating WSUN-FM pursuant
to an LMA since September 1998.
In January 1999, Cox Radio entered into an agreement to acquire KRTQ-FM
(formerly KTFX-FM) in Tulsa, Oklahoma for $3.5 million. Cox Radio also entered
into a Station Investment Note Receivable with the seller for $0.9 million which
is collateralized by substantially all the assets of the station. Cox Radio has
been operating this station pursuant to an LMA since January 1999. Pending
certain regulatory approvals, Cox Radio expects to consummate this acquisition
in December 1999.
On December 21, 1998 and March 1, 1999, Cox Radio purchased shares of
common stock of USA Digital Radio, Inc., a developer of digital radio
broadcasting technology, for a total purchase price of $2.5 million. Cox Radio
accounts for this investment under the cost method.
In May 1999, Cox Radio acquired radio stations WVEZ-FM and WSFR-FM and
the option to purchase WMHX-FM serving the Louisville, Kentucky market and radio
stations WFJO-FM, WHPT-FM and WDUV-FM (formerly WTBT-FM) serving the Tampa-St.
Petersburg, Florida market in exchange for the Company's radio stations WYYY-FM,
WBBS-FM, WWHT-FM, WHEN-AM and WSYR-AM serving the Syracuse, New York market,
plus additional cash consideration of approximately $94 million, resulting in a
pre-tax gain of approximately $39.8 million. In June 1999, Cox Radio exercised
its option to purchase WMHX-FM in Louisville for a purchase price of
approximately $2 million. Pending regulatory approvals, Cox Radio expects to
consummate this transaction in the second half of 1999. Cox Radio has been
operating the station under a JSA since May 1999. In connection with obtaining
regulatory approvals for these transactions, Cox Radio has agreed to divest
ownership of WRVI-FM and WLSY-FM serving the Louisville, Kentucky market. Such
stations have been transferred to a trust for the benefit of Cox Radio pending
sale to a third party. In May 1999, Cox Radio and the trust entered into an
agreement for the sale of WRVI-FM and WLSY-FM for consideration of $5.0 million.
Pending regulatory approvals, Cox Radio expects to consummate this transaction
in the second half of 1999.
In May 1999, Cox Radio entered into an agreement to acquire WNGC-FM,
licensed in Athens, Georgia for approximately $78 million. Pending regulatory
approvals, Cox Radio expects to consummate this acquisition in the second half
of 1999.
In June 1999, Cox Radio disposed of the assets of WPTW-AM in Dayton,
Ohio for consideration of $0.1 million.
In August 1999, Cox Radio consummated its acquisition of WEDA-FM in
Homewood, Alabama serving the Birmingham, Alabama market for a purchase price of
approximately $5.5 million and the assumption of debt of approximately $0.2
million. Prior to the acquisition, Cox Radio had been operating this station
under an LMA since November 1998.
13
<PAGE> 14
RESULTS OF OPERATIONS
Three months ended June 30, 1999 compared to three months ended June 30, 1998:
Net Revenues. Net revenues for the second quarter of 1999 increased
$9.4 million to $78.6 million, a 13.6% increase over the second quarter of 1998.
This increase was primarily a result of the 1998 acquisition of radio stations
in Long Island, New York and current year acquisitions in Tampa, Florida and
Louisville, Kentucky and offset somewhat by the May 1999 disposition of stations
in Syracuse, New York. In addition, the stations in Atlanta and Orlando had
significant increases in net revenues which were realized as a result of
continued strong ratings performance.
Station Operating Expenses. Station operating expenses increased $3.0
million to $47.9 million, an increase of 6.6% over the second quarter of 1998.
The increase was primarily attributable to the acquisition of stations in Long
Island, New York; Tampa, Florida; and Louisville, Kentucky and offset somewhat
by the disposition of stations in Syracuse, New York. The increase was also due
to higher programming and sales related costs which are driven by ratings and
revenues, respectively.
Broadcast Cash Flow. Broadcast cash flow increased $6.5 million to
$30.7 million, a 26.6% increase over the second quarter of 1998 for the reasons
discussed above.
Corporate general and administrative expenses. Corporate general and
administrative expenses increased $0.4 million in the second quarter of 1999 to
$2.4 million primarily due to higher overhead costs incurred as a result of the
increase in number of stations owned and/or operated in 1999.
Operating Income. Operating income for the second quarter of 1999
increased $4.8 million to $21.4 million, an increase of 29.2% over the second
quarter of 1998 for the reasons discussed above.
Interest expense. Interest expense during the second quarter of 1999
totaled $5.6 million as compared to second quarter 1998 of $4.0 million as a
result of borrowings incurred to complete Cox Radio's acquisitions during 1998
and the first half of 1999.
Net Income. Net income increased $26.3 million to $32.7 million for the
second quarter of 1999, primarily as a result of the $23.8 million after-tax
gain on the sale of Cox Radio's stations in Syracuse, New York and for the
reasons discussed above.
Six months ended June 30, 1999 compared to six months ended June 30, 1998:
Net Revenues. Net revenues for the first half of 1999 increased $17.7
million to $139.0 million, a 14.6% increase over the first half of 1998. This
increase was primarily a result of the 1998 acquisition of radio stations in
Long Island, New York and current year acquisitions in Tampa, Florida and
Louisville, Kentucky and offset somewhat by the May 1999 disposition of stations
in Syracuse, New York. In addition, the stations in Atlanta, Birmingham, and
Orlando had substantial increases in net revenues which were realized as a
result of continued strong ratings performance.
Station Operating Expenses. Station operating expenses increased $8.1
million to $88.6 million, an increase of 10.1% over the first half of 1998. The
increase was primarily attributable to the acquisition of stations in Long
Island, New York; Tampa, Florida; and Louisville, Kentucky and offset somewhat
by the disposition of stations in Syracuse, New York. The increase was also due
to higher programming and sales related costs which are driven by ratings and
revenues, respectively.
Broadcast Cash Flow. Broadcast cash flow increased $9.6 million to
$50.4 million, a 23.5% increase over the first half of 1998 for the reasons
discussed above.
Corporate general and administrative expenses. Corporate general and
administrative expenses increased $0.7 million in the first half of 1999 to $4.6
million primarily due to higher overhead costs incurred as a result of the
increase in number of stations owned and/or operated in 1999.
14
<PAGE> 15
Operating Income. Operating income for the first half of 1999 increased
$6.7 million to $32.6 million, an increase of 25.7% over the first half of 1998
for the reasons discussed above.
Interest expense. Interest expense during the first half of 1999
totaled $10.5 million as compared to first half of 1998 of $7.9 million as a
result of borrowings incurred to complete Cox Radio's acquisitions during 1998
and the first half of 1999.
Net Income. Net income increased $27.4 million to $36.5 million for the
first half of 1999, primarily as a result of the $23.8 million after-tax gain on
the sale of Cox Radio's stations in Syracuse, New York, and for the reasons
discussed above.
LIQUIDITY AND CAPITAL RESOURCES
Cox Radio's primary source of liquidity is cash provided by operations.
Historically, cash requirements have been funded by Cox Radio's operating
activities and through borrowings under Cox Radio's bank credit facility
described below. For the six months ended June 30, 1999 as compared to the six
months ended June 30, 1998, cash from operations increased $11.3 million to
$28.4 million, primarily attributable to improved operations and the net change
in working capital accounts. In addition, cash requirements historically have
been funded on a temporary basis through intercompany advances from Cox
Enterprises under a revolving credit facility with Cox Enterprises. Borrowings,
if any, by Cox Radio under the Cox Enterprises credit facility would typically
be repaid by Cox Radio within 30 days. Borrowings, if any, under the Cox
Enterprises credit facility would accrue interest at Cox Enterprises' commercial
paper rate plus .40%. Cox Enterprises continues to perform day-to-day cash
management services for Cox Radio.
On March 7, 1997, Cox Radio entered into a $300 million, five-year,
senior, unsecured revolving bank credit facility. The interest rate is based on
the London Interbank Offered Rate plus a spread determined by certain leverage
ratios. This facility also includes a commitment fee on the unused portion of
the total amount available of .1% to .25% based on certain leverage ratios. At
June 30, 1999, Cox Radio had $150 million of outstanding indebtedness under the
bank credit facility and had $150 million available under the bank credit
facility. The interest rate applied to amounts due under the bank credit
facility was 5.44% at June 30, 1999.
On May 26, 1998, Cox Radio issued and sold an aggregate of $200 million
principal amount of notes in an offering exempt from registration under Rule
144A of the Securities Act of 1933, as amended. Pursuant to the Registration
Rights Agreement dated as of May 26, 1998 among Cox Radio, its wholly owned
subsidiaries WSB, Inc. and WHIO, Inc. (each a guarantor of the notes),
NationsBanc Montgomery Securities LLC, Chase Securities, Inc., and J.P. Morgan
Securities, Inc., on December 14, 1998, Cox Radio consummated an exchange offer
pursuant to which Cox Radio exchanged $200 million principal amount of the notes
originally sold on May 26, 1998, for an aggregate of $200 million principal
amount of notes (the terms and form of which are the same in all material
respects as the original notes, except as to restrictions on transfer) which
have been registered under the Securities Act of 1933. As a result of the
mergers of WSB, Inc. and WHIO, Inc. into Cox Radio, WSB, Inc. and WHIO, Inc. are
no longer guarantors of the notes. As a result of the transfer of certain
Federal Communications Commission licenses, permits and authorizations held by
Cox Radio to CXR Holdings, Inc., a wholly-owned subsidiary of Cox Radio, CXR
Holdings became a guarantor of the notes on February 1, 1999.
15
<PAGE> 16
Cox Radio has entered into interest rate swap agreements with certain
lenders providing bank financing under the bank credit facility. Pursuant to the
interest rate swap agreements, Cox Radio has exchanged its floating rate
interest obligations on an aggregate of $100 million in principal at an average
fixed rate of 6.23% per annum having an average maturity of 6.25 years. The
fixing of interest rates for this period reduces Cox Radio's exposure to the
uncertainty of floating interest rates. The differential paid or received on the
interest rate swap agreements is recognized as an adjustment to interest
expense. The counterparties to these interest rate swap agreements are a diverse
group of major financial institutions. Cox Radio is exposed to credit loss in
the event of nonperformance by these counterparties. However, Cox Radio does not
anticipate nonperformance by the other parties, and no material loss would be
expected from their nonperformance. The fair value of the interest rate swap
agreements was not recognized in the consolidated financial statements since
they are accounted for as hedges. The estimated fair value of the interest rate
swap agreements, based on current market rates, approximated a net payable of
$39,000 at June 30, 1999 and $4.6 million at December 31, 1998.
Future cash requirements are expected to include capital expenditures,
principal and interest payments on indebtedness and funds for acquisitions. Cox
Radio expects its operations to generate sufficient cash to meet its capital
expenditures and debt service requirements. Additional cash requirements,
including funds for pending or other acquisitions, will be funded from various
sources, including the proceeds from bank financing and, if or when appropriate,
other issuances of Company securities.
OTHER MATTERS
IMPACT OF THE YEAR 2000 ISSUE AND YEAR 2000 READINESS DISCLOSURE
Cox Radio recognizes the importance of the Year 2000 issue and is
proactively managing an appropriate transition into the year 2000. The Year 2000
issue is the result of computer programs and embedded computer microprocessors
being unable to distinguish between the year 1900 and the year 2000, or
misinterpreting the date field. Any of Cox Radio's systems that have
time-sensitive software may recognize a date using "00" as the year 1900 rather
than the year 2000, which could result in miscalculations or system failures. A
system or application is deemed Year 2000 compliant when it continues to produce
understandable, accurate and predictable results which conform to the original
functional specifications, regardless of the millennium change.
STATE OF READINESS
Cox Radio has implemented a project team utilizing both internal and
external resources, including those of majority shareholder, Cox Broadcasting,
to develop its Year 2000 initiative, which may, as necessary, involve upgrading
or replacing affected computer systems, software and equipment with embedded
chips, and preparing contingency and disaster recovery plans.
Cox Radio has substantially completed an inventory of current systems
and operations to identify any information technology and non-information
technology systems (including equipment with embedded chips) that do not
properly recognize dates after December 31, 1999. The project team has developed
a plan to assess, remediate, test, and, sufficiently in advance of the Year
2000, ascertain that the systems of Cox Radio that are critical to its
operations will properly recognize such dates. The plan includes on-site audits
at each of Cox Radio's stations. As of June 30, 1999, the project team has
substantially completed this audit process.
Based on the results of the inventory, Cox Radio began in the second
quarter of 1998 to remediate noncompliant systems. Cox Radio anticipates that
remediation will be complete by the end of third quarter 1999. Cox Radio uses
Cox Enterprises' financial and human resources information systems, which are
being tested by Cox Enterprises.
16
<PAGE> 17
Cox Radio has substantially completed a formal communication program
with its significant vendors to determine the extent to which it is vulnerable
to those third parties who fail to remediate their own Year 2000 non-compliance.
Cox Radio is to a large degree dependent on vendor remediation and testing of
vendor systems. Cox Radio's two most significant vendors are Marketron, which
provides Cox Radio's traffic and billing system for the majority of its
stations, and ADP which provides payroll services. Cox Radio uses Marketron Act
II Version 28.02 running on DOS 6.22, which Marketron has indicated is Year 2000
compliant; and ADP PC/Payroll for Windows Version 2.5 running on Windows 95 for
substantially all of its stations, which ADP has indicated is Year 2000
compliant. Cox Radio successfully completed testing of Marketron Act II Version
28 .02 during the second quarter of 1999 and concluded that Version 28.02
appears to be Year 2000 compliant. Cox Enterprises has successfully completed
testing of ADP PC/Payroll for Windows Version 2.5 and concluded that Version 2.5
appears to be Year 2000 compliant.
COSTS
As of June 30, 1999, costs of approximately $570,000 have been incurred
related to Cox Radio's Year 2000 initiative. Cox Radio will incur capital
expenditures and internal staff costs as well as additional outside consulting
and other expenditures related to this initiative. Cox Radio expects these costs
will not exceed approximately $1.5 million, based on currently available
information. Total incremental expenses (including depreciation and
amortization) of bringing current systems into compliance, writing off existing
non-compliant systems, and capital replacements have not had a material impact
on Cox Radio's financial condition to date and are not at present, based on
known facts, expected to have a material impact on Cox Radio's financial
condition. All costs of the Year 2000 initiative will be funded by Cox Radio's
cash flow from operations.
RISKS AND MOST REASONABLY LIKELY WORST CASE SCENARIO
If systems critical to Cox Radio's operations are not Year 2000
compliant, the most reasonably likely worst case scenario would include service
interruptions resulting from failure in electrical power and satellite feeds
providing news, weather and syndicated shows for broadcast and failure of
equipment with embedded chips including master clocks, studio equipment,
transmission equipment and telephone, security and environmental control
systems.
Based on the information currently available, Cox Radio is not aware of
any likely Year 2000 non-compliance by Cox Radio or its vendors or customers
that will materially affect its business operations; however, Cox Radio does not
control the systems of other companies, and cannot assure that such systems will
be converted on a timely basis and, if not converted, would not have an adverse
effect on Cox Radio's business operations. Furthermore, no assurance can be
given at this time that any or all of Cox Radio's systems are or will be Year
2000 compliant, or that the ultimate costs required to address the Year 2000
issue or the impact of any failure to achieve substantial Year 2000 compliance
by Cox Radio, its vendors or customers will not have a material adverse effect
on Cox Radio's financial condition.
Like most other businesses, Cox Radio is dependent on general service
outside vendors including providers of electrical power, telephony, water, fuel
for vehicles and other necessary commodities. Cox Radio also relies upon the
interstate banking system and related electronic communications for such
functions as transmitting financial data from field locations to the home office
and sweeping cash into lockboxes. Cox Radio is currently not aware of any
material non-compliance by these providers that will materially affect its
business operations; however, Cox Radio does not control these systems and
cannot assure that they will be converted in a timely fashion and, if not
converted, would not have an adverse effect on its business operations.
17
<PAGE> 18
CONTINGENCY PLANS
The Year 2000 project team is working with each station to expand and
modify existing business continuity plans to encompass potential Year 2000
exposures, including increased risk of loss of electrical power, and satellite
failures resulting in need for alternate delivery system for programming,
potential multiple systems failures and other relevant issues. It is anticipated
that contingency plans will be in place for each station by mid-November, 1999.
If the modifications and conversions required to make Cox Radio Year
2000 ready are not made or are not completed on a timely basis, the resulting
problems could have a material impact on the operations of Cox Radio.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
Cox Radio has entered into interest rate swap agreements with certain
lenders providing bank financing under the bank credit facility. Pursuant to the
interest rate swap agreements, Cox Radio has exchanged its floating rate
interest obligations on an aggregate of $100 million in principal at an average
fixed rate of 6.23% per annum having an average maturity of 6.25 years. The
fixing of interest rates for this period reduces Cox Radio's exposure to the
uncertainty of floating interest rates. The differential paid or received on the
interest rate swap agreements is recognized as an adjustment to interest
expense. The counterparties to these interest rate swap agreements are a diverse
group of major financial institutions. Cox Radio is exposed to credit loss in
the event of nonperformance by these counterparties. However, Cox Radio does not
anticipate nonperformance by the other parties, and no material loss would be
expected from their nonperformance. The fair value of the interest rate swap
agreements was not recognized in the consolidated financial statements since
they are accounted for as hedges. The estimated fair value of the interest rate
swap agreements, based on current market rates, approximated a net payable of
$39,000 at June 30, 1999 and $4.6 million at December 31, 1998.
18
<PAGE> 19
PART II - OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Company held its Annual Meeting of Stockholders on May 19, 1999.
Three matters were voted upon at the meeting: (a) the election of a Board of
Directors of seven members to serve until the 2000 Annual Meeting or until their
successors are duly elected and qualified; (b) ratification of the appointment
by the Board of Directors of Deloitte & Touche, LLP, independent certified
public accountants, as the Company's independent auditors for the fiscal year
ending December 31, 1999; and (c) adoption of the Cox Radio, Inc. 1999 Employee
Stock Purchase Plan.
The following directors were elected and they received the votes
indicated:
<TABLE>
<CAPTION>
Nominee Votes in Favor Votes Withheld
------- -------------- --------------
<S> <C> <C>
David E. Easterly 203,237,412 124,087
Ernest D. Fears, Jr. 203,265,162 96,337
Richard A. Ferguson 203,237,562 123,937
Paul M. Hughes 203,264,362 97,137
James C. Kennedy 203,236,412 125,087
Robert F. Neil 203,236,972 124,527
Nicholas D. Trigony 203,226,112 135,387
</TABLE>
Ratification of Deloitte & Touche, LLP, as independent auditors for the
fiscal year ending December 31, 1999, was approved with 203,356,298 votes in
favor, 1,251 votes opposed to, and 3,950 abstentions.
Adoption of the Cox Radio, Inc. 1999 Employee Stock Purchase Plan was
approved with 203,295,777 votes in favor, 61,722 votes opposed to, and 4,000
abstentions.
19
<PAGE> 20
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Listed below are the exhibits which are filed as part of this
Report (according to the number assigned to them in Item 601
of Regulation S-K):
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
------ -----------------------------------
<S> <C> <C>
(1) 2.1 -- Agreement and Plan of Merger, dated
as of July 1, 1996, by and among
Cox Radio, Inc., New Cox Radio II,
Inc., NewCity Communications, Inc.
and certain stockholders of NewCity
Communications, Inc. (2)
(1) 2.2 -- Guaranty by Cox Broadcasting, Inc.,
dated as of July 1, 1996, in favor
of NewCity Communications, Inc.
(1) 3.1 -- Amended and Restated Certificate of
Incorporation of Cox Radio, Inc.
(1) 3.2 -- Amended and Restated Bylaws of Cox
Radio, Inc.
(3) 4.1 -- Indenture dated as of May 26, 1998
between Cox Radio, Inc., The Bank
of New York, WSB, Inc., and WHIO,
Inc.
(4) 4.2 -- First Supplemental Indenture dated
as of February 1, 1999 by and
between Cox Radio, Inc., CXR
Holdings, Inc., and the Bank of New
York
(5) 4.3 -- Registration Rights Agreement dated
May 26, 1998 among Cox Radio, Inc.,
WSB, Inc., WHIO, Inc., and
NationsBanc Montgomery Securities,
LLC, Chase Securities, Inc., and
J.P. Morgan Securities, Inc.
(6) 4.4 -- Specimen of Class A Common Stock
Certificate.
(7) 10.1 -- Credit Agreement, dated as of March
7, 1997, by and among Cox Radio,
Inc., Texas Commerce Bank National
Association, NationsBank of Texas,
N.A. and Citibank, N.A.,
individually and as agents, and the
other banks signatory thereto (2)
(1) 10.2 -- New CEI Credit Facility.
(1) 10.3 -- Cox Radio, Inc. Long-Term Incentive
Plan.
(1) 10.4 -- Cox Radio, Inc. Employee Stock
Purchase Plan.
(1) 10.5 -- Cox Radio, Inc. Restricted Stock
Plan for Non-Employee Directors
(1) 10.6 -- Tax Allocation and Indemnification
Agreement, dated as of September
30, 1996, by and between Cox
Enterprises, Inc. and Cox Radio,
Inc.
27.1 -- Financial Data Schedule (for SEC
use only)
</TABLE>
----------
(1) Incorporated by reference to the corresponding exhibit of Cox
Radio's Registration Statement on Form S-1 (Commission File
No. 333-08737).
(2) Schedules and Exhibits intentionally omitted.
(3) Incorporated by reference to Exhibit 4.1 of Cox Radio's
Registration Statement on Form S-4 (Commission File No.
333-61179).
(4) Incorporated by reference to Exhibit 4.2 of Cox Radio's
Quarterly Report on Form 10-Q for the period ending
March 31, 1999 (Commission File No. 1-12187).
(5) Incorporated by reference to Exhibit 4.2 of Cox Radio's
Registration Statement on Form S-4 (Commission File No.
333-61179).
(6) Incorporated by reference to Exhibit 4.3 of Cox Radio's
Registration Statement on Form S-1 (Commission File No.
333-08737).
(7) Incorporated by reference to Cox Radio's Annual Report on Form
10-K for the period ending December 31, 1996 (Commission File
No. 1-12187).
(b) Reports on Form 8-K
No reports on Form 8-K have been filed during the quarter for which
this report is filed.
20
<PAGE> 21
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
COX RADIO, INC.
August 13, 1999 /s/ Maritza C. Pichon
--------------------------------
Maritza C. Pichon
Chief Financial Officer
(Principal Financial Officer and
duly authorized officer)
21
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF COX RADIO, INC. FOR THE SIX MONTHS ENDED JUNE 30, 1999
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<EXCHANGE-RATE> 1
<CASH> 6,461
<SECURITIES> 0
<RECEIVABLES> 67,030
<ALLOWANCES> (2,774)
<INVENTORY> 0
<CURRENT-ASSETS> 75,481
<PP&E> 94,935
<DEPRECIATION> (38,785)
<TOTAL-ASSETS> 871,014
<CURRENT-LIABILITIES> 37,573
<BONDS> 350,266
0
0
<COMMON> 28,628
<OTHER-SE> 322,411
<TOTAL-LIABILITY-AND-EQUITY> 871,014
<SALES> 0
<TOTAL-REVENUES> 138,958
<CGS> 0
<TOTAL-COSTS> 88,568
<OTHER-EXPENSES> 17,809
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 10,457
<INCOME-PRETAX> 62,261
<INCOME-TAX> 25,763
<INCOME-CONTINUING> 36,498
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 36,498
<EPS-BASIC> 1.28
<EPS-DILUTED> 1.26
</TABLE>
