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T H E 6205 Peachtree Dunwoody Road Atlanta, GA 30328 678-645-0000 N A T U R E O F BALANCE COX ENTERPRISES, INC. Cox Enterprises Consolidated Revenues 2004 ANNUAL REPORT www.coxenterprises.com In Millions of Dollars 8,858 9,882 10,750 12,000 11,552 E 7,973 9,000 6,191 C 6,000 5,304 N 4,863 A 4,358 L 3,635 A 2,844 B 3,000 94 95 96 97 98 99 00 01 02 03 04 T H E 6205 Peachtree Dunwoody Road Atlanta, GA 30328 678-645-0000 N A T U R E O F BALANCE COX ENTERPRISES, INC. Cox Enterprises Consolidated Revenues 2004 ANNUAL REPORT www.coxenterprises.com In Millions of Dollars 8,858 9,882 10,750 12,000 11,552 E 7,973 9,000 6,191 C 6,000 5,304 N 4,863 A 4,358 L 3,635 A 2,844 B 3,000 94 95 96 97 98 99 00 01 02 03 04 Cox Enterprises At-A-Glance Cox Communications Manheim Cox Newspapers Cox Television Cox Radio AutoTrader.com Cox Communications is one of the largest broadband communications companies in the U.S., delivering cable TV, high-speed Internet and telecommunications services, as well as new advanced services including high-definition TV, entertainment on demand and digital video recorders. Manheim is the world’s leading provider of used vehicle services and marketplaces for the millions of cars that change hands every year. Manheim supports sellers in getting the maximum value for their vehicles, and provides buyers a reliable and safe market to purchase a wide array of cars. Technological innovation is incorporated at every stage of Manheim’s processes. Cox Newspapers is one of the nation’s 10 largest newspaper publishing enterprises, with 17 daily papers and 25 non-dailies. Cox Newspapers operates a direct mail business, distributes classified advertising publications, creates customized newsletters and owns one-third of a newsprint manufacturing business. Cox Television operates both network-affiliated and independent television stations across the country as well as local cable channels. In addition to its broadcasting entities, Cox Television owns three television advertising sales rep firms, which together are number one in this industry segment. Cox Radio is the largest pure-play radio station group and one of the largest radio broadcasting companies in the United States, based on revenues. The company operates 79 stations, including 66 FM and 13 AM stations in 18 markets. With a focus on operating excellence and the customer, Cox Radio’s high-performing radio clusters fit well with current media-buying approaches. A majority-owned subsidiary of Cox Enterprises, the company stock is traded on the New York Stock Exchange under the symbol “CXR.” AutoTrader.com, headquartered in Atlanta, GA, is the world’s largest online auto classifieds marketplace and consumer information Web site. Through easy-to-use search tools and innovative merchandising products, AutoTrader.com unites buyer and seller online – dramatically improving the way people research, locate and advertise vehicles. Cox Enterprises is the majority owner of AutoTrader.com. BY THE NUMBERS C OX E N T E R P R I S E S is one of the nation’s leading media companies and providers of automotive services. We are a Top 10 national player, based on Revenues: $6.4 billion Employees: 23,500 Cox Communications has 6.6 million total customer relationships in 22 states, including 6.3 million basic cable subscribers. Through Cox Business Services, it serves more than 140,000 business locations. RELATED OPERATIONS Cox Media revenues, in every major business Advertising sales category where we compete. HIGHLIGHTS OF THE YEAR • Increased number of “bundled” customers (those subscribing to at least two major Cox services) to more than 2.7 million, representing 44% of total basic cable customers. 2004 REVENUES: $11.6 BILLION 10-YEAR COMPOUND ANNUAL GROWTH RATE: 15% EMPLOYEES: 77,000 • Again received the highest honor in J.D. Power and Associates’ Residential Local Telephone Customer Satisfaction StudySM in the Western Region. Also ranked highest nationwide for bundled customer satisfaction in J.D. Power and Associates’ 2004 Residential Long Distance Telephone Service StudySM. • Turned up the speed on Cox High Speed Internet, giving Cox customers faster speeds and even greater value at no additional cost. • Following the destruction caused by the largest natural disaster to hit a Cox property, restored service and 265 miles of hurricanedamaged network within 30 days to customers in Florida’s Gulf Coast region. BY THE NUMBERS Revenues: $2.4 billion Employees: 32,000 Manheim registers to sell 10 million vehicles at its 116 locations worldwide and online. RELATED OPERATIONS Manheim Automotive Financial Services Financing, insurance and related services Remarketing Solutions Resale services for vehicle consignors Dent Wizard BY THE NUMBERS Revenues: $1.4 billion Employees: 15,000 Cox Newspapers publishes 17 daily newspapers with a Sunday circulation of 1.52 million. RELATED OPERATIONS RELATED OPERATIONS Valpak TeleRep Harrington, Righter & Parson MMT Sales National direct mail advertising Cox Custom Media Commercial newsletter publishing Trader Publishing Automotive paintless dent removal Manheim Government Services SP Newsprint Auto Body Repair Repairs for dealers, insurance companies, rental car companies and others (33% owned) Recycled newsprint producer PAGAS Mailing Services Direct mail advertising HIGHLIGHTS OF THE YEAR HIGHLIGHTS OF THE YEAR • Opened new Manheim DRIVE Center designed to enhance future of entire automotive remarketing business. • Posted record performance at Valpak and PAGAS. • Manheim Simulcast expanded to 500 lanes at 80 auctions. • Increased dealer sales percentage at almost every auction location. • Grew MAFS, Manheim’s financing arm, to be the second largest contributor to the bottom line. • Started Auto Body Repair business to support dealers, insurance and rental car companies for their auto body repair needs. Revenues: $694 million Employees: 2,700 Cox Television operates 15 stations and 2 local cable channels in 11 markets—reaching 30 million viewers—and a Washington, D.C. bureau. (50% owned) 749 publications Vehicle, employment and real estate guides Disposal services for government and utilities BY THE NUMBERS • Internet advertising revenue increased 27% and achieved profitability a year ahead of plan. • More than 1 million users registered on Cox Newspapers Web sites. • Continued to advance employee training at all levels. • Record revenues and operating cash flow at 50%-owned Trader Publishing. 96 new publications launched. National ad sales representation BY THE NUMBERS Revenues: $438 million Employees: 2,200 Cox Radio operates 79 stations in 18 markets, reaching over 13 million listeners each week. RELATED OPERATIONS HIGHLIGHTS OF THE YEAR CXRi – Internet Web Sites • Strong ratings and sales led Cox Television stations to record profit. HIGHLIGHTS OF THE YEAR • Four stations achieved 50% of all local news viewing in at least one primary news strip. • The 2004 Cox Television Political Initiative provided free candidate air-time and “Get Out The Vote” public service campaigns in addition to extended news coverage. • Station Internet sites drew 40% more unique users and became profitable. • WFTV’s hurricane coverage – marked with distinctive “firsts” and defining moments – dominated the market ratings. • Stations completed their digital transition to full-power DTV signals, with first-in-themarket broadcasts of local High Definition specials. • Posted record financial results despite soft demand in radio advertising. • Station clusters raised cash, food, water, pet supplies, and facilitated blood donations in response to the Florida hurricanes. • Continued to invest in our station brands, resulting in some of the best rating periods in the company’s history. • Launched a Customer Service Initiative to improve accountability with our advertisers. • Announced plans to roll out HD Radio to 80% of our stations over the next four years. BY THE NUMBERS Revenues: $190 million Employees: 1,020 AutoTrader.com aggregates in a single location an average of 2.6 million vehicle listings from approximately 37,000 dealers and 250,000 private owners. This provides the largest selection of vehicles attracting an average of 8.1 million unique visitors every month. HIGHLIGHTS OF THE YEAR • Increased revenue 42% and profits 76% over 2003. • Shown by independent research to facilitate $50 billion in retail automotive sales, 14% of the entire U.S. market. • Increased Web site traffic from 7.3 million to 8.1 million average monthly visitors. Cox Enterprises Management James C. Kennedy Chairman and Chief Executive Officer Preston B. Barnett Vice President and General Tax Counsel Sanford H. Schwartz Vice President, Business Development David E. Easterly Vice Chairman Richard D. Huguley Vice President, Development John C. Williams Vice President, Marketing Dennis Berry President and Chief Operating Officer Richard J. Jacobson Vice President and Treasurer Alexandra M. Wilson Vice President, Public Policy Robert C. O’Leary Executive Vice President and Chief Financial Officer Marybeth H. Leamer Vice President, Human Resources Location Timothy W. Hughes Senior Vice President, Administration Michael J. Mannheimer Vice President, Supply Chain Services and Chief Procurement Officer John G. Boyette Senior Vice President, Investments and Administration Andrew A. Merdek Vice President, Legal Affairs, General Counsel and Secretary Alexander V. Netchvolodoff Senior Vice President, Public Policy Gregory B. Morrison Vice President and Chief Information Officer Cox Enterprises, Inc. 6205 Peachtree Dunwoody Road Atlanta, GA 30328 (678) 645-0000 www.coxenterprises.com Cox Media Hot Line 1-877-4-COXNEWS (1-877-426-9639) • Customer base totals approximately 14,000 paying dealers, an increase of 28% over 2003. • Added Yahoo! Autos and Edmunds as exclusive listings distribution partners to complement existing deals with AOL, Univision and Internet Broadcasting Systems, Inc. • Signed up Audi and Volvo as OEM-certified partners, bringing the total in December 2004 to 22 partners with 231,000 listings. • The Cox-owned national advertising sales rep firms led its segment, handling over half of all national spot dollars on non-network owned television stations. Debuting in September 2004, the 145,000-square-foot, 30-acre Manheim DRIVE Center, located south of Atlanta, GA, is the remarketing industry’s first and only research and development facility. Our thanks to the employees appearing in this report: James O. Robbins President and Chief Executive Officer Dean H. Eisner President and Chief Executive Officer Jay R. Smith President Andrew S. Fisher President Robert F. Neil President and Chief Executive Officer Chip Perry President and Chief Executive Officer Back Cover from left to right: Leigh DuBray – Security Officer, John Willis – Fleet Assistant, Peter Ayala – Building Technician; Front Cover from left to right: Mark Dawson – Director of Information Services, Helen Zhang – Senior Tax Specialist, Carol Larner – Assistant Vice President and Assistant Treasurer; Page 4 from left to right: Don King – Transmission Supervisor, Mary McHale – Marketing Manager – Cox Business Services, Brian Wilson – Data Network Engineer; Page 5 from left to right: Karen White – NC Retail CSR (Customer Service Representative), Cheyenne Sanford – C/R Support Coordinator II; Page 6 from left to right: Owen Stephens – Director of Career Development, Sharon Kay Falls and Ed Falls – Ed – Dealer Sales Representative, Portland Auto Auction, Sharon – Marketing Customer Service Representative, Nivia Banks – Mercedes-Benz Account Coordinator, Patti Bailey – Auction Manager, Fort Worth Vehicle Auction; Page 7 from left to right: Terry Clare – Technician, Gene Laird – Fuel Truck Supervisor, FAAO; Page 8 from left to right: Julia Wallace – Editor, The Atlanta Journal-Constitution, Emily Mendez – Editor, La Palma, Omar Gallaga – Editor, ¡ahora sí!; Page 9 from left to right: Eddie Sears – Editor (Ret.) The Palm Beach Post, Lino Dominguez – Publisher & Editor, Mundo Hispánico, Mary Kay Johnson – General Manager, Cox Target Media / Valpak Los Angeles; Page 10 from left to right: Annette Parks Taylor – Director of Engineering, WPXI, Eric Minor – Anchor, WTOV; Page 11 from left to right: Tom Terry – Chief Meteorologist, WFTV, Lauren Cervantes – Executive Producer, KFOX, Ray Maker – Engineer, KIRO; Page 12 from left to right: Jeanetta Gill – Traffic Coordinator, Cox Radio Tulsa, David Meszaros – Vice President and General Manager, WSB AM; Page 13 Clockwise from top: Eugene Brooks – Director of Marketing and Promotions, WFOX (top), Julie Bruner-Sells – General Sales Manager, WBLI, Kevin Vargas – Program Director, KISS (bottom); Page 14 from left to right: Peggy Booker – Collections Team Leader, Eastern Division, Christina Zara – Business Intelligence Support Manager, Alec Tuckman – Internet Consultant; Page 15 from left to right: Crestard Falhoun – Technical Customer Care Representative, Jonathan Carven – Internet Specialist. CHATTAHOOCHEE RIVER, GEORGIA The Nature of Balance There is a balance in nature. It can be there and you might not even notice. Consider the soft carpet of moss at the foot of pine trees. The weathered boulders of the coast washed with the morning’s fresh mist. That kind of hidden balance can often be found in our various businesses. Toughness together with generosity. Innovation alongside tradition. At Cox Enterprises, we strive to maintain the balance between providing value to stakeholders and offering services to customers. We balance investments in our businesses and in our communities. In the pages ahead, we’ll explore our balance throughout the events of 2004. Also observed in these pages are beautiful places, in our home state of Georgia, where nature’s balance is at work every day. These places have received financial and volunteer support from Cox Enterprises through our partnerships with: Upper Chattahoochee RiverKeeper, Trust for Public Land, Piedmont Park Conservancy, PATH Foundation, The Nature Conservancy, Clean Air Campaign, and Wetlands America Trust. Let’s explore the nature of balance at Cox Enterprises. A Message From Jim Kennedy and Dennis Berry Experience teaches us that the difference between falling short and achieving success, in business and in life, is often the result of striking just the right balance. As we review 2004, many of our strongest performances were the result of charting a sensible middle course – to weigh risk with diligence, and expansion with sound strategic thinking. It was a year of solid accomplishment in large part because, in every subsidiary and at every level of our operations, Cox people took a balanced approach to meeting our goals and serving our customers. Balance In Our Business A hallmark of our founder, Governor James M. Cox, was the recognition that customers could be profitably served through more than one product or even one industry. At Cox, we have always appreciated that new media technologies can complement existing ones, rather than make them obsolete. Through the years, experts predicted that radio would mark the death of newspapers, television would destroy radio, cable would make broadcast TV irrelevant, and the Internet would overwhelm all of them. In fact, and to our great benefit, just the opposite has occurred. Our audiences seek a variety of news, information and entertainment options that fit their particular needs throughout their day. Because we have consistently chosen to embrace the new, while recognizing the enduring value of the old, we stand today as one of America’s most successful and diversified media enterprises. Our balanced array of media properties allows us to touch millions of readers, viewers and listeners in many different ways. This is one reason we have never been afraid to have our properties compete against one another – for advertising dollars or subscription revenue. In fact, competition has strengthened, rather than limited, their ability to perform. We also take a balanced approach when we make critical strategic decisions. In 2004, we completed the important step of taking Cox Communications private, acquiring the 38 percent stake of our broadband operations that had been publicly owned. We believe this transaction, the largest ever cash minority buy-in, will allow us to properly balance stability with growth for years to come. Jim Kennedy Chairman and Chief Executive Officer Dennis Berry President and Chief Operating Officer 2 Balance In Our Communities As significant as our work accomplishments can be for ourselves and for our customers, the Balance For The Long Term importance of balance extends far beyond our workplace into our family and community life. In 2004, for instance, we were reminded of the awesome power of nature and how quickly it can bring tragedy and upheaval to the communities we serve. When four hurricanes struck Florida in quick succession, Cox newspaper, cable and broadcast properties took We are marathoners, not sprinters. This thought succinctly explains why the lead in warning Floridians of the storms’ advance. Afterward, Cox employees played we chose to acquire the 38 percent important roles in helping their neighbors rebuild. Just as we strive to be good stewards public stake of Cox Communications, of the assets and values that have served our Company so well, we also take seriously our our broadband operation. The $8.5 responsibility to be good stewards of our communities and natural resources. billion cash transaction, the largest In this year’s report we spotlight several of these commitments to organizations like the of its kind ever undertaken, demon- Trust for Public Land, The Nature Conservancy and Wetlands America Trust, all devoted strates the Company’s commitment to to the preservation of our natural surroundings. Our efforts at the corporate level are focus on long-term growth – a focus magnified many times over by the contributions made to community and charitable that is not always shared by the public organizations by Cox subsidiaries, as well as the time and talent of thousands of Cox markets that tend to think ahead only employees who volunteer in communities across America. to next quarter’s financial results. As we look ahead, it’s clear that our Company will have a bright future if we continue to take a balanced approach to our operations and decisions, and if we seek balance in our family and community life. We are grateful for the commitment of every one of our 77,000 employees, whose energy, innovation and sound judgment will help us continue to build on more than 100 years of success. Since their founding nearly 40 years ago, our cable operations have flourished during both their private and public periods, growing to the third largest in the nation. Though the financial structure of our Sincerely, broadband properties has changed, their entrepreneurial culture, dedication to customer care, commitment to technological investment, industryleading reputation and strong growth Jim Kennedy Chairman and Chief Executive Officer Dennis Berry President and Chief Operating Officer potential are stronger than ever. 3 C O X C O M M U N I C AT I O N S Solid as a rock, Cox Communications is a leader among broadband communications companies. For more than 40 years, Cox has been a dependable provider of cable TV programming, and today remains one of the largest, most successful cable companies in the nation. Over the past decade, Cox has leveraged its success as a cable company to also deliver advanced broadband services. Cox has used its integrated broadband network to provide high-speed Internet, telephone and other advanced services and product features in a way that has customers praising the consistent, stable level of customer care they receive. In fact, Cox Communications received the highest honor in J.D. Power and Associates’ 2004 Residential Local Telephone Customer Satisfaction Study (Western Region) for overall customer satisfaction, for the second year in a row. There’s a reason Cox customers are so pleased: The simplicity of receiving bundled services from one provider is a point of great convenience, and Cox is a leader in delivering multiple services seamlessly, simply and easily over its sophisticated digital platform. The Company’s leadership and longevity in offering advanced broadband services are a huge part of the Company’s success. Cox maintains its stability with a dynamic mix of flexibility and attention to the changing needs of its customers. In 2004, Cox sped up Cox High Speed Internet; for instance, customers of its most popular service level, Preferred, saw their service speed up to 4.0 Mbps of download speed and 512 Kbps upload, at no extra cost. These speeds made Cox High Speed Internet the fastest broadband Internet service currently available for under $40 a month for bundled customers. For its millions of cable, telephone and high-speed Internet customers, it was just another reason why Cox is their stable, consistent “Friend in the Digital Age.” 4 Stability B Nothing shows more confidence in the growth of Cox Communications than Cox Enterprises’ acquisition of all outstanding public shares for $8.5 billion on December 8, 2004. This transaction empowers Cox Communications to focus on the long-term, better positioning the Company for future growth. The Company is known for its strong operations, driven by excellent management and employee talent. Among the numerous residential and commercial broadband services delivered with an unparalleled commitment to customer care, Cox Digital Telephone is a prime example of the Company’s commitment to growth. First launched in 1997, Cox’s telephone service quickly propelled the Company to become one of the largest phone companies in the nation. Starting in 2003, Cox began powering many of its new phone launches with Voice over Internet Protocol (VoIP) technology, which allows the Company to deliver phone service over the same private, managed digital platform as its high-speed Internet services. Cox Digital Telephone was launched via VoIP technology in five markets in 2004, with more scheduled in 2005. VoIP allows Cox to introduce the service in smaller markets where traditional circuit-switched technology isn’t economically viable. Whether via circuit-switched or VoIP technology, Cox Digital Telephone delivers reliability, savings and convenience to its 1.3 million customers. Another example of the Company’s exciting growth is enhanced video offerings like digital video recorders (DVR) and highdefinition television, now available in Cox markets nationwide. These services, as well as Entertainment on Demand, make it easier than ever for customers to take control of their viewing and greatly enhance the Company’s cable service and competitive position. Competition among providers of cable, Internet and telephone services is keen, but as a leader in the industry, Cox is well positioned to maintain and grow its already strong relationships with residential and commercial customers. With Cox Communications’ powerful, integrated network, its excellent customer care, and its exciting, powerful communications and entertainment services, growth is a natural. A L A N C E Growth CUMBERLAND ISLAND MANHEIM Manheim develops and utilizes innovative technologies in every aspect of its business to enhance customer and employee experiences. Across 115 locations worldwide, technology solutions developed by Manheim assist dealers in pricing vehicles, managing accounts, checking sale inventory, and buying and selling cars. This reach extends beyond the physical auction through manheim.com, providing Internet access to sale information and around the clock buying and selling opportunities. Technology also plays a major role in adding efficiency to the operations, with widespread use of portable computing, wireless communications networks and data warehousing to facilitate activities like inspections, title transfers and arbitration. To assist thousands of dealers in managing their business, Manheim provides Tracker DMS, a system to manage purchases, accounting, reporting and inventory management. Manheim employees also benefit from a sophisticated and flexible information system, and Main Street, an Intranet site to share ideas and best practices. Nowhere in the Cox portfolio of businesses is the Company’s commitment to forward thinking and innovative technologies more apparent than at the new Manheim DRIVE Center located just south of Atlanta. The 145,000-square-foot, 30-acre facility – aptly named for the center’s goals of Development, Research, Innovation, Vision and Excellence – is dedicated to advancing the remarketing industry. This includes testing new technologies, products and processes and providing a place where customers, employees and other industry members can share expertise. New Manheim DRIVE innovations such as biometric identification and RFID (Radio Frequency Identification) for vehicle location may be concepts today, but are likely to be commonplace in the industry sooner than most may think. Clearly, high tech is second nature at Manheim. 6 High Tech B Manheim’s commitment to technology reinforces its leadership position in the remarketing industry, but it is the Company’s high touch approach to customers and employees that sets it apart. More than 65,000 dealers attend one of the Company’s 130 live auctions every week. These gathering places allow dealers to conduct their business among people who know their names and constantly strive to meet their needs. At the auctions, dealers regularly take the opportunity to buy and sell cars, communicate among their peers and meet with major manufacturers and consignors. They also take advantage of Manheim’s array of services, including financing, reconditioning, arbitration, title management, electronic selling and more. Experienced Manheim staff at these locations help buying and selling dealers with their marketplace needs. For example, Manheim’s financial services staff provides thousands of buying dealers funds to build floor plans for their purchases so they can acquire their inventory needs. Similarly, Manheim has more than 500 trained and dedicated representatives to assist consigning dealers in selling more of the cars they bring for sale. The Company succeeds in being an effective marketplace by creating stimulating events, attracting more buyers and sellers, bringing energy and excitement to the process, and standing with pride behind its work. In addition to serving customers, Manheim is committed to providing growth opportunities for its 32,000 employees. In 2004, more than a quarter of the workforce participated in formal professional development opportunities, including exchange programs between its operations in the U.S., Canada, Europe, Australia and Asia. Nice touch. A L A N C E High Touch DODD CREEK, RAVENCLIFF WILDERNESS AREA COX NEWSPAPERS If one word can describe the entire Cox Newspapers and COXnet staff, that word would have to be committed. Editors and staffers who go beyond the expected to bring to their readers the world’s events written with the local perspective... Columnists who can recognize and spot trends and explain how these ideas affect international, national or local issues... Journalists committed to the highest ethical standards... That’s the Cox Newspapers way, and it has been recognized inside the industry and out, year after year. Only Cox Newspapers can claim back-to-back recognition from Editor & Publisher, the industry’s trade publication, for Editor of the Year honors. First, in 2004, Edward M. Sears, editor of The Palm Beach Post, was credited by the publication for turning The Post into a “journalistic powerhouse” by “combining aggressive newsroom recruiting with an insistence on oldfashioned newspaper values.” Then in early 2005 came the same honor for Julia Wallace, editor of The Atlanta Journal-Constitution, for her “thinkglobal-write-Atlanta philosophy.” This commitment to journalistic excellence extends through all 17 Cox daily newspapers, the 25 non-dailies and COXnet. The Dayton Daily News’ hard-hitting series on the Peace Corps, for instance, brought to light the dangers and abuse faced by volunteers. In Atlanta, Journal-Constitution religion writer Gayle White insightfully predicted the impact of religion and values on the outcome of the 2004 presidential election. And at COXnet, more than 21,000 stories were available throughout the group, with Cox maintaining its status as one of the major contributors to The New York Times News Service and its 650 client newspapers around the globe. 8 Committed B Cox Target Media and Trader Publishing both provide creative solutions for thousands of advertisers – Cox Target Media through its national Valpak network and Trader Publishing through its many classified advertising publications. Cox Target Media’s formula for success is simple but effective: deliver the advertisers’ coupons that consumers would most like to see in the Valpak envelope. Better content raises redemption rates, which drives advertiser sales. Recent strategic initiatives, especially targeting the restaurant industry, have done just that. In 2004, Cox Target Media capped three years of solid growth by selling, producing and distributing nearly 19 billion coupons – a record volume in Valpak’s 36-year history. The increase in volume and earnings has been complemented by a similarly significant drop in production costs – 15% over the past four years – the result of concerted quality improvement initiatives. Taken together, these two trends have significantly strengthened the Valpak brand and positioned Cox Target Media for continued success in coming years. Trader Publishing has also experienced a year of strong growth, starting 96 new publications just in 2004. One focus for the year was adding 26 Spanish language titles out of the Company’s total of 749. No other company in the United States has the depth and breadth of specialty publishing offered by Trader. But the Company’s commitment to creative solutions doesn’t end with print publications as demonstrated by the growth of Trader Electronic Media, which offers targeted online advertising options. The acquisition of several Internet-only advertisers has broadened Trader Electronic Media’s offering, which sets the stage for continued strong growth. Committed and creative, Cox Newspapers brings to life editorial and advertising opportunities for readers and clients alike. A L A N C E Creative CLEAN AIR CAMPAIGN, DOWNTOWN ATLANTA COX TELEVISION At Cox Television, the goal is to connect viewers to their communities and advertisers to their customers. The foundation of these connections are outstanding news broadcasts, distinctive public service, and a broad spectrum of advertising options over the air and the Internet. Cox news broadcasts are the leaders in most markets. In fact, in 2004, four stations had more than half of all news viewing in at least one of the major news time periods, a record unmatched in major market broadcasting. The reason people turn to Cox stations is exemplified by WFTV in Orlando, FL. As four hurricanes battered the state in the fall of 2004, Chief Meteorologist Tom Terry took to the air as the first to predict that Hurricane Charley was changing paths and would directly hit Orlando and Central Florida. Whole communities reacted immediately to his report, giving them crucial additional time to prepare for the storm. Ratings leaped. With news, substance is everything. The same dedication in sales was embodied by the Image Plus program that gives small advertisers special access to high-quality production and timeslots they might not normally be able to afford to reach consumers and grow their businesses. It has proven to be a lucrative new market, demonstrated by commitments for $9 million across the Cox group. Nationwide, the Cox sales reps provide the same uncompromising service to hundreds of stations from the major group owners. 10 Substance B In television, viewers are acutely sensitive to the balance between substance and style. TV literally reflects and sets styles instantly seen and evaluated by viewers. The strongest editorial content must be matched by a clear and interesting presentation style and Cox stations are leaders in serving community expectations. New weather sets and presentations were rolled out in multiple markets and new investments were made in digital editing capability. As the digital broadcasting and high definition (HDTV) era dawns, higher quality pictures are increasingly the centerpiece of viewer expectation. In 2004, Cox Television stations completed its rollout of HD technology with all stations now at maximum licensed power. Station Web sites also now feature high-quality video. This investment in the newest technology emphasizes the Company’s belief in the future and the sensitivity of today’s increasingly tech-savvy consumer. The sales style at the stations and the three national ad sales representation firms illustrates the Company’s commitment to the highest level of client service. Relentless execution, a sense of urgency, and providing tangible results are the traditional Cox style that will never go out of fashion. A L A N C E Style PIEDMONT PARK, ATLANTA COX RADIO Cox Radio has one overriding principle and that’s operational excellence. It’s the priority at every Cox Radio station, along with an uncompromising determination to serve advertisers and listeners with great radio programming. That’s why Cox Radio has always limited the commercial loads on its stations to make sure listeners keep listening and advertisers are heard. Another part of the oneness that runs through every Cox Radio station, whether it’s a Louisville station playing Oldies or a Tulsa FM station broadcasting the latest country hits, is the dedication to the local community. Every one of the Cox Radio stations contributes to the lifeblood of its community hosting concerts, fun-runs, charitable events, job fairs and much more. Another one of the things you’ll soon find happening across Cox Radio stations is the switch to HD Radio™. In the next four years, 80 percent of the Company’s stations will be broadcasting in HD, or high definition. This new technology allows, at a minimum, better sound quality: AM will sound like FM; FM will sound like CDs. And HD Radio™ opens up a wide world of possibilities to improve content and services as more and more digital receivers come into the market. One thing’s for sure: there’s one company that has both the initiative and the know-how to bring the value of HD Radio™ to its member stations and ultimately to its listeners and advertisers, and that one is Cox Radio. 12 One B Based on revenues, Cox Radio is the largest pure-play radio station group and is one of the largest radio broadcasting companies in the country. What enables the Company to achieve success is its many stations – 79 in 18 markets – that give Cox Radio just the right mix of diverse formats. A Cox Radio station is the number one station in nine of 18 total markets. In 17 markets, Cox operates one of the top three stations and in all 18 markets, a Cox station is among the market’s top five. Cox Radio’s many stations operate in healthy, high-growth metropolitan areas such as Atlanta, Orlando, Houston and Jacksonville, and Cox stations give listeners many format choices. The combination of market reach and format diversity allows Cox Radio to devise highly effective, targeted media placement programs for advertisers. Finally, Cox Radio is made up of many community-minded professionals. Nowhere was this more evident than among the staff of Cox Radio’s Florida stations in the wake of the hurricanes that hit their state during the fall of 2004. Station-backed relief efforts included a concert in Jacksonville benefitting the Red Cross Disaster Relief Fund, collecting bottled water for victims in Miami and fundraisers for cash, blood, food and even pet supplies in Tampa and Orlando. One Company comprised of many. That’s Cox Radio’s perfect balance. A L A N C E Many WOLF CREEK, UNION COUNTY AUTOTRADER.COM AutoTrader.com is a successful example of the symbiosis between virtual and actual. As an online “many-to-many marketplace”, AutoTrader.com unites tens of thousands of car buyers and sellers on a daily basis in a way that could never be accomplished in the “real world.” That might be enough for some but not AutoTrader.com. They keep offering more. With innovative tools for dealers, such as their Dynamic Display Ad and multiple photo features, AutoTrader.com assists dealers in merchandising their inventories in exciting ways. The Web site delivers real customers – and real profits – to dealers, with an ROI much higher than traditional media. As a result, 14,000 dealers have been enrolled to date. From the consumer’s standpoint, AutoTrader.com provides a virtual solution to a comprehensive shopping process. Instead of driving from lot to lot, the buyer can search thousands of lots and driveways from their home or office. A powerful and cost-effective advertising medium, AutoTrader.com has pioneered presenting detailed information online about real-time inventory. You could say it’s virtually impossible to find another online company as innovative and customer-oriented as AutoTrader.com. And odds are that’s absolutely right. 14 Virtual B While AutoTrader.com’s marketplace may be virtual, the Company’s facilitation of more than $50 billion in annual transactions – representing 14 percent of the entire U.S. market – through consumer, dealer and private owner use of the site is both real and quantifiable. AutoTrader.com is the world’s largest online automobile classifieds marketplace and consumer information Web site, offering on average 2.6 million vehicle listings from 37,000 dealers and 250,000 private owners. On a monthly basis, there are 8.1 million visitors to the AutoTrader.com site. But while the “.com” part of the name indicates a virtual company, the technology would be meaningless without skilled, committed people standing behind it. With a workforce more than 1,000 strong, AutoTrader.com is a company that is absolutely real and that cares about its communities. In 2004, AutoTrader.com employees made commitments to their communities through a number of projects including: supporting hurricane relief efforts at Florida dealerships, raising funds for St. Jude’s Children’s Hospital, and making donations as a LifeBoard member of the American Red Cross and to Project Open Hand. Virtual and actual. AutoTrader.com has found the balance. A L A N C E Actual ARABIA MOUNTAIN TRAIL, LITHONIA Ourselves and Others Nature is the quintessential example of balance. On the previous pages, we have seen the beautiful and serene side of nature. We know, however, that nature has an entirely different side, one that can be dark and violent. This other side became all too clear for residents of the Southeast last August and September as a series of hurricanes brought devastation and destruction to the region. But even these forces of nature were balanced by something equally powerful – people pulling together to survive and recover from these storms. And many of these people were our own. Coverage From the Center of the Storm Williams and Steve Noble both lost their homes during For many of our Florida-based news organizations, being Hurricane Ivan, they and many other employees affected in “the eye of the storm” took on an entirely new mean- by the hurricane returned to work immediately to begin ing as they found themselves experiencing it firsthand while the process of rebuilding the system and serving customers. covering the actual story. At The Palm Beach Post, this meant Within hours of the hurricane, more than 100 employees keeping critical employees – those necessary for the from throughout the country descended on Gulf Coast paper to be published – on the job during the two to help their co-workers repair more than 265 miles of hurricanes that struck the area. To do so, The Post had damaged network and repair lines to more than 35,000 to provide temporary shelter and meals for employees homes in less than 30 days. Employees in Cox’s Central and their families, totaling well over 300 people, for more Florida operation demonstrated a similar commitment than three days for Frances and two days for Jeanne. to customer care and teamwork when the Gainesville The same kind of cooperation was visible when Hurricane Isabel hit the eastern seaboard in September, 2003. Cox’s largest North Carolina daily and Ocala areas were hit by two more hurricanes. The community service aspect of news coverage was exemplified at Orlando’s WFTV-TV. The staff ’s reporting of fast- newspaper, The Daily Reflector in moving Hurricane Charley, which veered Greenville, opened its doors to staff off its projected course to head straight members of its two sister dailies, toward Orlando in a matter of hours, the Rocky Mount Telegram and the transmitted critical information to area Elizabeth City Daily Advance. Several of Cox’s non-dailies also used Cox’s North residents about the changing and fastapproaching storm. The station’s Carolina facility in Greenville to Chief Meteorologist Tom Terry is produce their newspapers. Likewise, credited with giving Orlando the first The Enterprise relocated staffs from warning that Charley was headed its two other Cox non-dailies to its way. During the night, employees Williamston, NC, facility, which was worked tirelessly to air updated less likely to lose power or be flooded. weather crawls, post information on At Cox Communications’ Gulf the station’s Web site and even operate Coast operation, getting the job done was a priority, bilingual phone banks to provide critical news to even if you were a victim yourself. Though Tucker the Hispanic community. 16 PHOTOS PROVIDED BY THE PALM BEACH POST. Ourselves and Others Weeks later in Orlando, when Hurricane Frances In the immediate aftermath of the storm, The Palm came bearing down, the actions of one Cox employee will Beach Post distributed free papers to those waiting in line stand as an inspiration to us all. Keith Altiero of Cox for supplies and to those in shelters so that victims could Radio’s WDBO-AM joined his station’s crew, in spite of keep abreast of relief efforts. The Post also spearheaded the fact that he was still weak from cancer treatments. a massive fundraising effort “United to Help” from Keith worked the critical hours during and after the which all proceeds went to help victims in surrounding storm, running on adrenaline for 48 hours straight. And counties. Cox Radio’s Miami stations WEDR-FM and when the final hurricane of the season, Jeanne, assaulted WHQT-FM joined the campaign, and even in Ohio, Florida yet again, he was back at the station hard at Cox newspapers ran promotional ads so their readers work. By November 30, the official hurricane season was could contribute. More than $100,000 was raised. over and Keith was fighting cancer once more. He lost his fight on December 19, 2004. Cox Broadcasting properties also were major players in fundraising and donation efforts in their respective communities. In Orlando, Cox’s radio and TV stations The Many Faces of Relief staged a live remote to collect relief money, blood donations, Cox employees displayed a level of concern and compas- food and pet supplies. In Jacksonville, Cox Radio stations sion in the aftermath of these storms that was equal to promoted a free concert that raised $75,000 in monetary the level of commitment and cooperation displayed in donations for the Red Cross Disaster Relief Fund. In the storms’ midst. Hollywood, FL, near Miami, two Cox Radio stations Our automotive divisions found many ways to help. delivered vast amounts of water to victims, thanks to the Gene Laird, a Manheim gas truck operator, braved the generosity of their listeners. Although many were them- treacherous trip from Orlando to Pensacola to deliver selves victims of Ivan’s destruction, Cox Communications 250 gallons of much-needed fuel to fellow employees employees created and contributed to relief funds that at Manheim’s Pensacola auction. Similarly, Manheim’s raised more than $57,000 to benefit their co-workers, as Mississippi Auto Auction sent a truckload of ice and water well as funds and volunteer activities that helped the to its sister auction in Pensacola, where such basics were whole Gulf Coast community bounce back. And well almost non-existent. Florida Auto Auction provided gas beyond the Florida state line, Cox Radio crews in to keep the news trucks running at Cox’s WFTV-TV in Tulsa, OK, generated nearly $6,000 for hurricane victims. Orlando. The channel returned the favor by running These are only a few of the hundreds of examples announcements for employees and customers on the of the extraordinary measures demonstrated by Cox people auction’s business status. And, Scott Guillerm, a key and divisions during an extraordinary series of events. accounts consultant with AutoTrader.com, joined a com- They underscore, again, that Cox employees not only pany team of volunteers. They traveled to auto dealers take care of each other, but also take care of others in across Florida’s western Gulf Coast, bringing relief their communities. It’s a great example of the nature of supplies and helping to clear debris from their lots. balance at Cox. 18 PHOTOS PROVIDED BY THE PALM BEACH POST. Cox Communications ��������� �������������� ������������ ������������� ������������ ���������� ����������������� �������������� �������������� �������������� ���������� ����������� ��������������� ������������� ����������� �������� ������������������������������ ����������������� ����������� ����������������������� ����������� ������������� ��������������� ����������������� ��������������������������� ���������� ������������� ����������������� ����������� ��������������� ��������� �������������� ������������� ������������ ���������������� ��������� ���������������� �������������� ��������� �������������� ���������� �������������� ��������� ������������ ���������� ���������������� ��������������� ���������������� ��������������� ������������� �������������� CORPORATE OFFICERS James O. Robbins President and Chief Executive Officer James A. Hatcher, Esq. Senior Vice President, Legal and Regulatory Affairs Patrick J. Esser Executive Vice President and Chief Operating Officer Scott A. Hatfield Senior Vice President and Chief Information Officer Jimmy W. Hayes Executive Vice President, Finance Chief Financial Officer Claus F. Kroeger Senior Vice President, Operations Christopher J. Bowick Senior Vice President, Engineering Chief Technical Officer Jill Campbell Senior Vice President, Operations 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 F. William Farina Senior Vice President, Advertising Sales Joseph J. Rooney Senior Vice President, Marketing Robert C. Wilson Senior Vice President, Programming Andrew I. Albert Vice President, Programming Susan P. Ballance Controller Preston B. Barnett Vice President, Tax Susan W. Coker Vice President and Treasurer Ellen M. East Vice President, Communications and Public Affairs William J. Fitzsimmons Vice President, Accounting and Financial Planning Chief Accounting Officer Steve M. Gorman Vice President, High Speed Internet Marketing and Product Management Thomas G. Guthrie Vice President, Information Technology Operations Erin B. Hand Vice President, Talent and Development Scott Hightower Vice President, Data/Voice Product Development John G. Hildebrand Vice President, Multimedia Engineering Veenod Kurup Vice President, Data Product Services J. Lacey Lewis Vice President, Investor Relations Sherryl D. Love Vice President, Materials Management 20 Andrew A. Merdek Secretary Richard A. Mueller Vice President, Network Planning, Engineering and Operations Stephen K. Necessary Vice President, Video Product Development Alexander V. Netchvolodoff Vice President, Public Policy Belinda Turner Patterson Vice President, People Services Katherine S. Payne Vice President, Programming Carrington F. Phillip, Esq. Vice President, Regulatory Affairs David Pugliese Vice President, Product Management and Marketing Robert N. Redella Vice President, Mergers and Acquisitions Jay A. Rolls Vice President, Telephone and Data Engineering LOCATIONS Following is a list of Cox Communications’ largest operations (those serving 15,000 or more customers). Arizona Arizona operation includes Phoenix, Tucson, Sierra Vista and nearby areas Nebraska Omaha (including Council Bluffs, Iowa) Arkansas Bentonville, Fayetteville/Springdale, Fort Smith, Jonesboro, Russellville and nearby areas* California Humboldt Orange County/Palos Verdes San Diego Santa Barbara/Bakersfield Nevada Las Vegas New England New England operation encompasses Rhode Island and portions of Connecticut and Massachusetts North Carolina North Carolina operation includes Greenville, New Bern, Rocky Mount and nearby areas Florida Central Florida (Gainesville, Ocala and nearby areas) Gulf Coast (Pensacola, Ft. Walton Beach and nearby areas) Georgia Middle Georgia (Macon, Warner Robins and nearby areas) Ohio Cleveland area Oklahoma Oklahoma operation includes Oklahoma City, Tulsa, Enid, Muskogee, Stillwater, McAlester and nearby areas Kansas Kansas operation includes Dodge City/Garden City, Manhattan/Junction City, Salina, Southeast Kansas, Topeka, Wichita and nearby areas Texas Bryan, Georgetown, Tyler, Victoria and nearby areas* West Texas (Lubbock, Midland, Amarillo, San Angelo, Abilene and nearby areas. Also includes Clovis, New Mexico.) Louisiana Alexandria, Bossier City, Lafayette, Lake Charles, New Iberia and nearby areas* Baton Rouge New Orleans Virginia Hampton Roads Northern Virginia (Fairfax County and Fredericksburg) Roanoke *These locations are part of the Middle America Cox operation, encompassing portions of Arkansas, Louisiana, Missouri, Oklahoma and Texas. OPERATIONS MANAGEMENT Robin H. Sangston, Esq. Vice President and Assistant General Counsel Janet H. Barnard Vice President and Region Manager, Middle America Percy J. Kirk Vice President and Region Manager, Omaha, NE Kevin H. Haynes Vice President and General Manager, Cleveland, OH Debbie Siek Vice President, Customer Care David A. Bialis Vice President and Region Manager, Oklahoma Thomas H. ”Duffy” Leone Vice President and Region Manager, Orange County, CA Marilyn S. Humphrey Vice President and General Manager, Roanoke, VA Greg Bicket Vice President and Region Manager, New Orleans, LA Gary T. McCollum Vice President and Region Manager, Northern Virginia Franklin R. Bowers Vice President and Region Manager, Hampton Roads, VA J. Stephen Rizley Vice President and Region Manager, Arizona Julie O. McGovern Vice President and General Manager, Santa Barbara/Bakersfield, CA Leo W. Brennan Vice President and Region Manager, Las Vegas, NV Philip C. Ahlschlager Vice President and General Manager, North Carolina Paul J. Cronin Vice President and Region Manager, New England Keith N. Crossley Vice President and General Manager, Humboldt, CA Kimberly C. Edmunds Vice President and Region Manager, Kansas J. Michael Dyer Vice President and General Manager, Middle Georgia William K. Geppert Vice President and Region Manager, San Diego, CA Mike J. Giampietro Vice President and General Manager, Central Florida John P. Spalding, Esq. Vice President and Assistant General Counsel William R. Stemper Vice President, Cox Business Services Mary E. Thigpen Vice President, Strategy Mark S. Williams Vice President, Engineering Field Operations Ali M. Zanjani Vice President, Sales and Distribution Jacqui D. Vines Vice President and General Manager, Baton Rouge, LA Connie S. Wharton Vice President and General Manager, West Texas L. Keith Gregory Vice President and General Manager, Gulf Coast, FL 21 Manheim ������������������������������������������� ������������������������� ����������� �������������� ����������� ������������ ������������ ����������������� ������������ ��������������� ��������������� ����������������� ������������� ������������ ���������������� ����������� ������������� ������������� ����������� ��������������� ��������������� �������������� �������������� ������������������ ��������� ���������������������� ����������� ����������������� ��������������� ������������ ���������� ��������������� ��������������� ���������� ������������������ ���������������� ���������������� ��������������� ������������� ������������� �������������� ��������� ��������������� ������������� �������������� �������������� ��������������� �������������� ����������� ����������� ������������ ���������� ���������� ��������������� ����������� ����������� ������������� ������������� ������������� ����������� ����������� ��������������� ��������������� ������������� ��������������� ��������� ��������� �������������� ����������� ������������ ����������������� ������������ ������������������� ��������� ������������� MANAGEMENT: EXECUTIVE CORPORATE OPERATIONS SALES Dean H. Eisner President and Chief Executive Officer Andrew M. Drake Vice President, Product Management David M. Berkstresser Vice President, Operations, Southwest Diane F. Barton Vice President, Operations Jamie D. Porter Executive Vice President, Operations Jeffrey J. Lenar Vice President, Real Estate Anthony J. Giurato, Jr. Vice President, Operations, Midwest Joseph J. Cadigan, Jr. Vice President, Operations Kyle E. Ohman Vice President, Operations, Southeast Michael P. Lasini Vice President, Sales Daniel E. Thomas Vice President, Operations, West Michael F. Moumousis Vice President, National Accounts Keith N. Williams Vice President, Operations, Northeast Charles E. Novince Vice President, National Accounts J. David Young Vice President, Operations, Florida Michael L. Russo Vice President, National Accounts Michael W. Broe Senior Vice President, New Business Ventures Michael J. Langhorne Senior Vice President, Chief Financial Officer Ralph M. Liniado Senior Vice President, Development Harold J. Logan Senior Vice President, Strategic Planning and Industry Relations Nick H. Peluso Senior Vice President, Sales Michael S. Lang Vice President, Marketing Joe Luppino Vice President, Chief Technology Officer Lilicia Perry Vice President, Human Resources 22 Michael L. McKinney Vice President, Dealer Sales David Munnikhuysen Vice President, Reconditioning Operations Thomas J. Nohstadt Vice President, International Development David R. Nutter Vice President, Auto Body Repair Berta M. Phelps Vice President, Best Practices Robert W. Pohle Vice President, Special Operations William A. Tiedemann Vice President, Auction Services Gary W. Edwards Vice President, Auto Body Repair, Southeast Andrew W. Ingalls Vice President, Auto Body Repair, Great Lakes Jeff R. Corigliano Vice President, Auto Body Repair, West NORTH AMERICAN LOCATIONS Arizona Manheim’s Arizona Auto Auction Manheim’s Greater Auto Auction of Phoenix Manheim’s Tucson Auto Auction California Manheim’s Bay City Auto Auction Manheim’s California Auto Dealer’s Exchange Manheim’s Fresno Auto Dealers Auction Manheim’s Los Angeles Dealers Auto Auction Manheim’s Riverside Auto Auction Manheim’s San Diego Auto Auction Manheim’s Southern California 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 Manheim’s Pensacola Auto Auction Manheim’s St. Pete Auto Auction Manheim’s West Palm Beach Auto Auction Georgia Manheim’s Atlanta Auto Auction Manheim’s Bishop Brothers Auto Auction Manheim’s Georgia Dealers Auto Auction Manheim DRIVE Center 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 Indiana Manheim’s Fort Wayne Vehicle Auction Manheim’s Louisville Auto Auction Kentucky Manheim’s Mid-America Auto Auction Louisiana Manheim’s Greater New Orleans Auto Auction Manheim’s Lafayette 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 Manheim’s Michigan Auto Auction Minnesota Manheim’s Minneapolis Auto Auction Manheim’s Northstar Auto Auction Mississippi Manheim’s Mississippi Auto Auction Missouri Manheim’s 166 Auto Auction Manheim’s Kansas City Auto Auction Manheim’s St. Louis Auto Auction Nebraska Manheim’s Omaha Auto Auction Nevada Manheim’s Greater Las Vegas Auto Auction Manheim’s Greater Nevada Auto Auction New Jersey Manheim’s National Auto Dealers Exchange Manheim’s Skyline Auto Exchange OTHER BUSINESSES INTERNATIONAL LOCATIONS John E. Bailey Managing Director, Manheim Europe England Manheim Auctions – Birmingham Manheim Auctions – Bristol Manheim Auctions – Clochester Manheim Auctions – Coventry Manheim Auctions – Gloucester Manheim Auctions – Haydock Manheim Auctions – Knottingley Manheim Auctions – Leeds Manheim Auctions Leeds – Commercials Manheim Auctions – Leicester Manheim Auctions – Manchester Manheim Auctions – Mansfield Manheim Auctions – Middlesbrough Manheim Auctions – Northampton Manheim Auctions – Rotherham Manheim Auctions – Washington Manheim Auctions – Wimbledon Portfolio Europe – Manchester Vehicle Remarketing Solutions – Coventry KAH Systems – Newcastle upon Tyne Mark J. Brunn Vice President and General Manager, Remarketing Solutions Kelly G. Conger President, Dent Wizard H. David Fowles Managing Director, Manheim Asia-Pacific Leon L. Lyon Vice President and General Manager, MAFS 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’s Auto Auction South Carolina Manheim’s Clanton’s Auto Auction Tennessee Manheim’s Nashville 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 Manheim’s Virginia Auto Exchange 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 Australia Fowles Auction Group – Adelaide Fowles Auction Group – Brisbane Fowles Auction Group – Canberra Fowles Auction Group – Hobart Fowles Auction Group – Launceston Fowles Auction Group – Melbourne Fowles Auction Group – Newcastle Fowles Auction Group – Perth Fowles Auction Group – Sydney Fowles Auction Group – Townsville Portfolio Australia – Melbourne New Zealand Fowles Auction Group – Auckland Fowles Auction Group – Christchurch Fowles Auction Group – Wellington Thailand Manheim Asia Pacific – Bangkok Scotland Manheim Scottish Auctions – Glasgow Belgium Portfolio Europe – Antwerp Spain Manheim Directo – Madrid 23 Cox Newspapers ������������������ ���������� ������������� �������������� ���������������� ����������� ��������������� ����������� ������������������ �������������� �������������� ����������� ������������ �������� ���������� ���������������� ���������� MANAGEMENT Jay R. Smith President Roger S. Kintzel Senior Publisher Jay Campbell Vice President, Circulation Cathy Coffey Vice President, Advertising Susan S. Davidson Vice President, Human Resources Karla Garrett Harshaw Senior Editor, Community Newspapers ������������ ��������������� ���������� ��������� ������������������� PUBLISHERS Caroline C. John Group Vice President, Community Newspapers Vice President, Marketing Mark P. Mansfield President, Cox Newsprint Supply, Inc. Stan Richmond Vice President, Operations Buddy Solomon Vice President and Chief Financial Officer Gary Borders The Lufkin Daily News (TX) Glenn McCutchen Longview News-Journal (TX) Edwina Blackwell Clark Journal-News (Hamilton, OH) The Middletown Journal (OH) John C. Mellott The Atlanta Journal-Constitution (GA) Karla DeLuca The Daily Sentinel (Nacogdoches, TX) George Orbanek The Daily Sentinel (Grand Junction, CO) Douglas E. Franklin Dayton Daily News (OH) Joyce Reingold Palm Beach Daily News (FL) Tom Giuffrida The Palm Beach Post (FL) Dan C. Savage Waco Tribune-Herald (TX) Tim Hobbs The Daily Advance (Elizabeth City, NC) William R. Swaim Springfield News-Sun (OH) Michael A. Laosa Austin American-Statesman (TX) Phil Latham The Marshall News Messenger (TX) 24 D. Jordan Whichard III The Daily Reflector (Greenville, NC) Raye P. Woodin III Rocky Mount Telegram (NC) DAILIES CIRCULATION The Atlanta Journal-Constitution (GA) Austin American-Statesman (TX) The Palm Beach Post (FL) Dayton Daily News (OH) Waco Tribune-Herald (TX) The Daily Sentinel (Grand Junction, CO) Longview News-Journal (TX) Springfield News-Sun (OH) JournalNews (Hamilton, OH) The Daily Reflector (Greenville, NC) The Middletown Journal (OH) Rocky Mount Telegram (NC) The Lufkin Daily News (TX) The Daily Advance (Elizabeth City, NC) The Daily Sentinel (Nacogdoches, TX) News Messenger (Marshall, TX) Palm Beach Daily News (FL) Total DAILY SUNDAY 399,471 178,591 167,543 137,889 39,740 29,781 29,081 28,583 21,755 21,151 20,015 14,437 13,798 10,551 8,318 6,997 5,900 613,560 229,775 202,195 185,728 48,575 33,732 35,865 35,425 24,174 23,226 21,972 16,732 16,118 10,281 9,919 7,442 6,607 1,133,601 1,521,326 Source: Internal Annual Average Circulation as of December 31, 2004 NON-DAILIES CIRCULATION Florida Pennysaver (West Palm Beach, FL) Western Star (Lebanon, OH) Mundo Hispánico (Atlanta, GA Spanish language) Pulse-Journal (Mason, OH) LaPalma (West Palm Beach, FL Spanish language) ¡ahora sí! (Austin, TX Spanish language) The Nickel-Grand Junction (Grand Junction, CO) Fairfield Echo (OH) The Duplin Times (Kenansville, NC) North Lake Travis (Lago Vista, TX) The Chowan Herald (Edenton, NC) Bastrop Advertiser (TX) The Enterprise (Williamston, NC) Oxford Press (OH) Beaufort-Hyde News (Belhaven, NC) Pflugerville Pflag (TX) Lake Travis View (Austin, TX) Bertie Ledger-Advance (Windsor, NC) Westlake Picayune (Westlake Hills, TX) Smithville Times (TX) Standard Laconic (Snow Hill, NC) Farmville Enterprise (NC) Times-Leader (Ayden-Grifton, NC) Perquimans Weekly (Elizabeth City, NC) Weekly Herald (Robersonville, NC) 443,500 58,166 55,000 47,603 30,549 23,214 23,126 22,896 13,818 5,465 5,301 5,166 4,732 3,597 3,510 3,218 3,208 3,121 3,055 2,666 2,426 1,800 1,690 1,547 1,035 Total 769,409 Source: Internal Annual Average Circulation as of December 31, 2004 RELATED 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 Jeffrey J. Means, CEO SP Newsprint (33% owned) Atlanta, GA Joseph R. Gorman, President & CEO Trader Publishing Co. (50% owned) 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, General Manager 25 Cox Television ����������� ������������� �������� ����������������� ���������������� ����������������� �������������� ���������� ���������������� ������������� ����������� ����������� ������������ ������������������ MANAGEMENT John D. Tramontanis Controller Bruce R. Baker Executive Vice President David F. Grayson Director, Cox Retail Marketing Sterling E. Davis Vice President, Engineering Shereta D. Williams Director, Development & Digital Services William M. Spell Vice President, Sales and Marketing Deborah A. Thomas Vice President, Human Resources 26 RELATED OPERATIONS Andrew S. Fisher President Amelia L. DiVenere Vice President, Finance and Administration ����������� Heidi Wiedenbauer Bureau Chief Washington News Office Washington, D.C. TeleRep New York Steven J. Herson, President Harrington, Righter & Parsons, Inc. New York Murray L. Berkowitz, President MMT Sales New York Larry Strumwasser, President FIRM LOCATION California TeleRep TeleRep HRP HRP MMT MMT Los Angeles San Francisco Los Angeles San Francisco Los Angeles San Francisco Florida TeleRep HRP MMT Miramar Tampa Tampa Georgia TeleRep HRP MMT Atlanta Atlanta Atlanta Illinois TeleRep HRP MMT Chicago Chicago Chicago Massachusetts TeleRep HRP MMT Michigan TeleRep HRP MMT Boston Boston Boston Detroit Southfield Troy BROADCAST STATION MARKET KTVU-TV KICU-TV WSB-TV KIRO-TV WFTV-TV WRDQ-TV WPXI-TV WSOC-TV WAXN-TV WHIO-TV WJAC-TV KFOX-TV KRXI-TV KAME-TV WTOV-TV San Francisco/Oakland San Jose/San Francisco Atlanta Seattle Orlando Orlando Pittsburgh Charlotte Charlotte Dayton Johnstown El Paso Reno Reno Steubenville Pittsburgh Dayton FIRM LOCATION Minnesota TeleRep HRP MMT Minneapolis Minneapolis Minneapolis Missouri TeleRep HRP St. Louis St. Louis New York TeleRep HRP MMT New York New York New York North Carolina MMT Charlotte Pennsylvania TeleRep HRP MMT Philadelphia Philadelphia Philadelphia Texas TeleRep TeleRep HRP MMT Dallas Houston Dallas Dallas Virginia HRP Arlington Washington TeleRep HRP MMT Seattle Seattle Kent AFFILIATION MANAGEMENT 6 6 9 12 20 20 22 28 28 56 97 100 114 114 152 FOX IND ABC CBS ABC IND NBC ABC IND CBS NBC FOX FOX UPN NBC Tim McVay Tom Raponi Greg Stone John Woodin Bill Hoffman Bill Hoffman Ray Carter Lee Armstrong Lee Armstrong Harry Delaney Dick Schrott John Witte Marty Ozer Marty Ozer Tim McCoy 22 56 IND UPN Ray Carter Harry Delaney MARKET SIZE* CABLE CHANNEL PCNC UPN 17 *Market size by population according to Nielsen. 27 Cox Radio ������������� �������������� �������������������� ��������������� ��� ���������� ��� ������������ �������������� ��������� �������������������������� ��� �������������� ��������������� ������������ ���������������� ����������� ��������������� ����������� ��������� ��������� MANAGEMENT Robert F. Neil President and Chief Executive Officer Marc W. Morgan Executive Vice President and Chief Operating Officer Richard A. Ferguson Executive Vice President Neil O. Johnston Vice President and Chief Financial Officer Richard A. Reis Group Vice President 28 Caroline J. Devine Regional Vice President Kimberly A. Guthrie Regional Vice President Jarrett A. O’Connor Regional Vice President Robert B. Reed Regional Vice President Gregg A. Lindahl Vice President, CXRi Roxann L. Miller Vice President, Research MARKET (1) STATION Atlanta WSB-AM WALR-FM WSB-FM WBTS-FM WFOX-FM 1 2 7 7 23 News/Talk Urban Adult Contemporary Adult Contemporary Rhythmic CHR Urban Contemporary Birmingham WBHJ-FM WBHK-FM WZZK-FM WBPT-FM WAGG-AM WZZK-AM (formerly WRJS-AM) WNCB-FM (formerly WODL-FM) WHKO-FM WHIO-AM WZLR-FM WDPT-FM WJMZ-FM WHZT-FM KCCN-FM KRTR-FM KPHW-FM (formerly KXME-FM) KINE-FM KRTR-AM (formerly KHNR-AM) KKNE-AM (formerly KHCM-AM) KLDE-FM KKBQ-FM KTHT-FM KHPT-FM WFYV-FM WOKV-AM WAPE-FM WMXQ-FM WJGL-FM (formerly WKQL-FM) WBLI-FM WBAB-FM WHFM-FM 1 1 9 10 17 27 -(2) 2 6 8 12 1 1 2 2 5 6 -(2) -(2) 9 9 13 17 1 1 2 5 -(2) 2 7 -(3) Hip Hop R&B/Soul Country 80’s Gospel Classic Country New Country Country News/Talk Classic Rock 80’s Urban Rhythmic CHR Hawaiian CHR Adult Contemporary Rhythmic CHR Hawaiian Adult Contemporary Easy Listening Traditional Hawaiian Oldies Country Country Legends 80’s Classic Rock News/Talk CHR 80’s Classic Hits CHR Mainstream Rock Mainstream Rock Louisville WVEZ-FM WSFR-FM WRKA-FM WPTI-FM 2 5 6 14 Adult Contemporary Classic Rock Oldies New Country Miami WHQT-FM WEDR-FM WFLC-FM WHDR-FM (formerly WPYM-FM) WCFB-FM WPYO-FM WDBO-AM WHTQ-FM WWKA-FM WMMO-FM WKLR-FM WKHK-FM WMXB-FM WDYL-FM KONO-FM KONO-AM KISS-FM KSMG-FM KCYY-FM KELZ-FM KKYX-AM 1 2 6 -(2) 1 2 3 4 6 8 1 2 3 4 1 -(4) 2 3 4 10 19 Urban Adult Contemporary Urban Contemporary Hot Adult Contemporary Active Rock Urban Adult Contemporary Rhythmic CHR News/Talk Classic Rock Country Rock Adult Contemporary Classic Rock Country Hot Adult Contemporary New Rock Oldies Oldies Active Rock Hot Adult Contemporary Country Mainstream CHR Classic Country WEZN-FM WPLR-FM WYBC-FM (5) WKHL-FM WEFX-FM WSTC-AM WNLK-AM 2 1 2 4 5 19 35 Adult Contemporary Classic Rock/Mainstream Urban Adult Contemporary Oldies Classic Rock News/Talk News/Talk WWRM-FM WDUV-FM WSUN-FM WXGL-FM WPOI-FM WHPT-FM 1 2 4 4 8 12 Adult Contemporary Soft Adult Contemporary Alternative Rock Classic Hits 80’s Classic Rock KWEN-FM KRTQ-FM KJSR-FM KRMG-AM KRAV-FM 2 2 2 3 4 Country Active Rock Classic Rock News/Talk Adult Contemporary Dayton Greenville-Spartanburg Honolulu Houston Jacksonville Long Island Orlando Richmond San Antonio Southern Connecticut Bridgeport/Fairfield County New Haven Stamford-Norwalk Tampa Tulsa RANK IN TARGET FORMAT Source: Arbitron Market Reports fourbook average for Winter 2004, Spring 2004, Summer 2004 and Fall 2004. (1) Metropolitan market served; city of license may differ. (2) The station format was changed; therefore, the station’s rank information for 2004 is not applicable. (3) Audience share and audience rank information for WBAB-FM and WHFM-FM are combined because the stations are simulcast. (4) Audience share and audience rank information for KONO-FM and KONOAM are combined because the stations are simulcast. (5) Station operated by Cox Radio under a Joint Sales Agreement. 29 AutoTrader.com �������������� ����������������� ������������ ����������������� ����������� ����������� ����������� ������������ ����������� ����������� ������������� ������������������������ ���������������� ����������� ����������� ������������� ������������ ���������� ������������ �������������� ��������� ���������� �������������� ���������� ������������� ������������� ����������� ������������ ���������������� �������������� ����������� �������� �������������� ���������� �������������� ������������������ �������������� ��������� ����������������� ������������� ���������� ������������� ���������������� ������������ ������������� ���������������� ������������� �������������������� ��������������� ���������� ����������� �������������� ������������� ����������� ������������� ��������������� ����������� ������������ ������������� ������������������ ������������ ��������� ����������������� ��������������� ����������� �������������� ����������� ����������������� ����������� ������������� ����������� ������������� ����������������� ��������������� ��������������� ����������� ������������ ������������� ���������� �������������� �������������� ����������� ������������ ����������� ��������������������� ���������������� ���������� ���������� ���������� ����������� ��������������� ����������� ����������� ������������ ��������������� ���������������� ������������������� ��������� ������������������ ������������� ���������� ��������� ����������������������������� ���������� MANAGEMENT John McCormick Regional Vice President, East Division Jim McKnight Executive Vice President and Chief Operating Officer Alan Smith Regional Vice President, West Division Sue Boehlke Senior Vice President, Operations Brian Goddard Vice President, Application Development Hal Greene Senior Vice President, Sales Bill Templeton Senior Vice President and Chief Financial Officer Dan Crowe Chief Information Officer Beth Jordan Vice President, Sales Operations 30 REGIONAL OFFICES Chip Perry President and Chief Executive Officer Joe George Senior Vice President, Operations ��������� Davis Ray Vice President, Dealer Services Sylvia Taylor Vice President, Human Resources Rebecca Watson Vice President, Organizational Services and Community Relations Clark Wood Vice President, Marketing Boston, MA David Crawford Regional Director (Northeast) Chicago, IL Eric Webb Regional Director (Midwest) Dallas, TX Jim Cox Regional Director (Southwest) Ft. Lauderdale, FL Craig Hunt Regional Director (South) Los Angeles, CA Ian MacDonald Regional Director (West) Norfolk, VA Roger Hilterbrandt Regional Director (Mid-Atlantic) HEADQUARTERS Atlanta, GA MARKETS WITH FIELD SALES REPRESENTATIVES Alabama Birmingham Mobile Arizona Phoenix Tucson Arkansas Little Rock California Fresno Los Angeles/ Orange County Riverside Sacramento San Bernardino San Diego San Francisco San Jose Colorado Denver Colorado Springs Connecticut New Haven Stratford Delaware Wilmington Florida Destin Ft. Lauderdale Jacksonville Miami Naples Orlando Tampa West Palm Beach Kentucky Frankfort Louisville Louisiana New Orleans Massachusetts Boston Georgia Atlanta Maryland Annapolis Baltimore Hawaii Honolulu Maine Portland Iowa Des Moines Michigan Detroit Grand Rapids Lansing Idaho Boise Illinois Benton Chicago Peoria Indiana Gary Indianapolis Kansas Wichita Minnesota Minneapolis/St. Paul Missouri Kansas City Springfield St. Louis Mississippi Jackson Nebraska Omaha North Carolina Charlotte Raleigh Winston-Salem Oklahoma Oklahoma City Tulsa New Hampshire Manchester Oregon Eugene Portland New Jersey Newark Trenton Pennsylvania Philadelphia Pittsburgh New Mexico Albuquerque Las Cruces Roswell Rhode Island Providence Nevada Las Vegas New York Albany Buffalo Long Island New York City Rochester Syracuse Ohio Akron Cincinnati Cleveland Columbus Lima Toledo South Carolina Columbia Greenville Tennessee Chattanooga Knoxville Memphis Nashville Utah Salt Lake City Virginia Harrisonburg Norfolk Richmond Roanoke Washington Olympia Seattle Spokane Washington, D.C. Wisconsin Green Bay Madison Milwaukee Texas Austin Dallas/Fort Worth El Paso Houston Lubbock San Antonio Cox Enterprises, Inc. OTHER OPERATIONS Clarendon Farms, Inc. Burton, SC Ted R. Moring, Farm Manager Hualalai Land Corp. Kailua-Kona, HI Franklin T. Boteilho, Ranch Manager 31 Cox Enterprises Board of Directors SEATED LEFT TO RIGHT James C. Kennedy, Anne Cox Chambers, Barbara Cox Anthony, Paul J. Rizzo, Thomas O. Cordy BACK LEFT TO RIGHT Dennis Berry, Robert C. O’Leary, Richard L. Braunstein, David E. Easterly, Arthur M. Blank, Carl R. Gross Barbara Cox Anthony Chairman, Dayton Newspapers Anne Cox Chambers Chairman, Atlanta Newspapers Dennis Berry President and Chief Operating Officer, Cox Enterprises, Inc. 32 Arthur M. Blank Co-Founder and Retired Chairman, The Home Depot, Inc. Chairman, The Arthur M. Blank Family Foundation, AMB Group, LLC and the Atlanta Falcons Richard L. Braunstein Member, Dow, Lohnes & Albertson, PLLC Thomas O. Cordy Retired President and Chief Executive Officer, The Maxxis Group, Inc. James C. Kennedy Chairman and Chief Executive Officer, Cox Enterprises, Inc. David E. Easterly Vice Chairman, Cox Enterprises, Inc. Robert C. O’Leary Executive Vice President and Chief Financial Officer, Cox Enterprises, Inc. Carl R. Gross Retired Senior Vice President and Chief Administrative Officer, Cox Enterprises, Inc. Retired President, Cox Newsprint Supply Paul J. Rizzo Retired Vice Chairman, IBM Cox Enterprises At-A-Glance Cox Communications Manheim Cox Newspapers Cox Television Cox Radio AutoTrader.com Cox Communications is one of the largest broadband communications companies in the U.S., delivering cable TV, high-speed Internet and telecommunications services, as well as new advanced services including high-definition TV, entertainment on demand and digital video recorders. Manheim is the world’s leading provider of used vehicle services and marketplaces for the millions of cars that change hands every year. Manheim supports sellers in getting the maximum value for their vehicles, and provides buyers a reliable and safe market to purchase a wide array of cars. Technological innovation is incorporated at every stage of Manheim’s processes. Cox Newspapers is one of the nation’s 10 largest newspaper publishing enterprises, with 17 daily papers and 25 non-dailies. Cox Newspapers operates a direct mail business, distributes classified advertising publications, creates customized newsletters and owns one-third of a newsprint manufacturing business. Cox Television operates both network-affiliated and independent television stations across the country as well as local cable channels. In addition to its broadcasting entities, Cox Television owns three television advertising sales rep firms, which together are number one in this industry segment. Cox Radio is the largest pure-play radio station group and one of the largest radio broadcasting companies in the United States, based on revenues. The company operates 79 stations, including 66 FM and 13 AM stations in 18 markets. With a focus on operating excellence and the customer, Cox Radio’s high-performing radio clusters fit well with current media-buying approaches. A majority-owned subsidiary of Cox Enterprises, the company stock is traded on the New York Stock Exchange under the symbol “CXR.” AutoTrader.com, headquartered in Atlanta, GA, is the world’s largest online auto classifieds marketplace and consumer information Web site. Through easy-to-use search tools and innovative merchandising products, AutoTrader.com unites buyer and seller online – dramatically improving the way people research, locate and advertise vehicles. Cox Enterprises is the majority owner of AutoTrader.com. BY THE NUMBERS C OX E N T E R P R I S E S is one of the nation’s leading media companies and providers of automotive services. We are a Top 10 national player, based on Revenues: $6.4 billion Employees: 23,500 Cox Communications has 6.6 million total customer relationships in 22 states, including 6.3 million basic cable subscribers. Through Cox Business Services, it serves more than 140,000 business locations. RELATED OPERATIONS Cox Media revenues, in every major business Advertising sales category where we compete. HIGHLIGHTS OF THE YEAR • Increased number of “bundled” customers (those subscribing to at least two major Cox services) to more than 2.7 million, representing 44% of total basic cable customers. 2004 REVENUES: $11.6 BILLION 10-YEAR COMPOUND ANNUAL GROWTH RATE: 15% EMPLOYEES: 77,000 • Again received the highest honor in J.D. Power and Associates’ Residential Local Telephone Customer Satisfaction StudySM in the Western Region. Also ranked highest nationwide for bundled customer satisfaction in J.D. Power and Associates’ 2004 Residential Long Distance Telephone Service StudySM. • Turned up the speed on Cox High Speed Internet, giving Cox customers faster speeds and even greater value at no additional cost. • Following the destruction caused by the largest natural disaster to hit a Cox property, restored service and 265 miles of hurricanedamaged network within 30 days to customers in Florida’s Gulf Coast region. BY THE NUMBERS Revenues: $2.4 billion Employees: 32,000 Manheim registers to sell 10 million vehicles at its 116 locations worldwide and online. RELATED OPERATIONS Manheim Automotive Financial Services Financing, insurance and related services Remarketing Solutions Resale services for vehicle consignors Dent Wizard BY THE NUMBERS Revenues: $1.4 billion Employees: 15,000 Cox Newspapers publishes 17 daily newspapers with a Sunday circulation of 1.52 million. RELATED OPERATIONS RELATED OPERATIONS Valpak TeleRep Harrington, Righter & Parson MMT Sales National direct mail advertising Cox Custom Media Commercial newsletter publishing Trader Publishing Automotive paintless dent removal Manheim Government Services SP Newsprint Auto Body Repair Repairs for dealers, insurance companies, rental car companies and others (33% owned) Recycled newsprint producer PAGAS Mailing Services Direct mail advertising HIGHLIGHTS OF THE YEAR HIGHLIGHTS OF THE YEAR • Opened new Manheim DRIVE Center designed to enhance future of entire automotive remarketing business. • Posted record performance at Valpak and PAGAS. • Manheim Simulcast expanded to 500 lanes at 80 auctions. • Increased dealer sales percentage at almost every auction location. • Grew MAFS, Manheim’s financing arm, to be the second largest contributor to the bottom line. • Started Auto Body Repair business to support dealers, insurance and rental car companies for their auto body repair needs. Revenues: $694 million Employees: 2,700 Cox Television operates 15 stations and 2 local cable channels in 11 markets—reaching 30 million viewers—and a Washington, D.C. bureau. (50% owned) 749 publications Vehicle, employment and real estate guides Disposal services for government and utilities BY THE NUMBERS • Internet advertising revenue increased 27% and achieved profitability a year ahead of plan. • More than 1 million users registered on Cox Newspapers Web sites. • Continued to advance employee training at all levels. • Record revenues and operating cash flow at 50%-owned Trader Publishing. 96 new publications launched. National ad sales representation BY THE NUMBERS Revenues: $438 million Employees: 2,200 Cox Radio operates 79 stations in 18 markets, reaching over 13 million listeners each week. RELATED OPERATIONS HIGHLIGHTS OF THE YEAR CXRi – Internet Web Sites • Strong ratings and sales led Cox Television stations to record profit. HIGHLIGHTS OF THE YEAR • Four stations achieved 50% of all local news viewing in at least one primary news strip. • The 2004 Cox Television Political Initiative provided free candidate air-time and “Get Out The Vote” public service campaigns in addition to extended news coverage. • Station Internet sites drew 40% more unique users and became profitable. • WFTV’s hurricane coverage – marked with distinctive “firsts” and defining moments – dominated the market ratings. • Stations completed their digital transition to full-power DTV signals, with first-in-themarket broadcasts of local High Definition specials. • Posted record financial results despite soft demand in radio advertising. • Station clusters raised cash, food, water, pet supplies, and facilitated blood donations in response to the Florida hurricanes. • Continued to invest in our station brands, resulting in some of the best rating periods in the company’s history. • Launched a Customer Service Initiative to improve accountability with our advertisers. • Announced plans to roll out HD Radio to 80% of our stations over the next four years. BY THE NUMBERS Revenues: $190 million Employees: 1,020 AutoTrader.com aggregates in a single location an average of 2.6 million vehicle listings from approximately 37,000 dealers and 250,000 private owners. This provides the largest selection of vehicles attracting an average of 8.1 million unique visitors every month. HIGHLIGHTS OF THE YEAR • Increased revenue 42% and profits 76% over 2003. • Shown by independent research to facilitate $50 billion in retail automotive sales, 14% of the entire U.S. market. • Increased Web site traffic from 7.3 million to 8.1 million average monthly visitors. Cox Enterprises Management James C. Kennedy Chairman and Chief Executive Officer Preston B. Barnett Vice President and General Tax Counsel Sanford H. Schwartz Vice President, Business Development David E. Easterly Vice Chairman Richard D. Huguley Vice President, Development John C. Williams Vice President, Marketing Dennis Berry President and Chief Operating Officer Richard J. Jacobson Vice President and Treasurer Alexandra M. Wilson Vice President, Public Policy Robert C. O’Leary Executive Vice President and Chief Financial Officer Marybeth H. Leamer Vice President, Human Resources Location Timothy W. Hughes Senior Vice President, Administration Michael J. Mannheimer Vice President, Supply Chain Services and Chief Procurement Officer John G. Boyette Senior Vice President, Investments and Administration Andrew A. Merdek Vice President, Legal Affairs, General Counsel and Secretary Alexander V. Netchvolodoff Senior Vice President, Public Policy Gregory B. Morrison Vice President and Chief Information Officer Cox Enterprises, Inc. 6205 Peachtree Dunwoody Road Atlanta, GA 30328 (678) 645-0000 www.coxenterprises.com Cox Media Hot Line 1-877-4-COXNEWS (1-877-426-9639) • Customer base totals approximately 14,000 paying dealers, an increase of 28% over 2003. • Added Yahoo! Autos and Edmunds as exclusive listings distribution partners to complement existing deals with AOL, Univision and Internet Broadcasting Systems, Inc. • Signed up Audi and Volvo as OEM-certified partners, bringing the total in December 2004 to 22 partners with 231,000 listings. • The Cox-owned national advertising sales rep firms led its segment, handling over half of all national spot dollars on non-network owned television stations. Debuting in September 2004, the 145,000-square-foot, 30-acre Manheim DRIVE Center, located south of Atlanta, GA, is the remarketing industry’s first and only research and development facility. Our thanks to the employees appearing in this report: James O. Robbins President and Chief Executive Officer Dean H. Eisner President and Chief Executive Officer Jay R. Smith President Andrew S. Fisher President Robert F. Neil President and Chief Executive Officer Chip Perry President and Chief Executive Officer Back Cover from left to right: Leigh DuBray – Security Officer, John Willis – Fleet Assistant, Peter Ayala – Building Technician; Front Cover from left to right: Mark Dawson – Director of Information Services, Helen Zhang – Senior Tax Specialist, Carol Larner – Assistant Vice President and Assistant Treasurer; Page 4 from left to right: Don King – Transmission Supervisor, Mary McHale – Marketing Manager – Cox Business Services, Brian Wilson – Data Network Engineer; Page 5 from left to right: Karen White – NC Retail CSR (Customer Service Representative), Cheyenne Sanford – C/R Support Coordinator II; Page 6 from left to right: Owen Stephens – Director of Career Development, Sharon Kay Falls and Ed Falls – Ed – Dealer Sales Representative, Portland Auto Auction, Sharon – Marketing Customer Service Representative, Nivia Banks – Mercedes-Benz Account Coordinator, Patti Bailey – Auction Manager, Fort Worth Vehicle Auction; Page 7 from left to right: Terry Clare – Technician, Gene Laird – Fuel Truck Supervisor, FAAO; Page 8 from left to right: Julia Wallace – Editor, The Atlanta Journal-Constitution, Emily Mendez – Editor, La Palma, Omar Gallaga – Editor, ¡ahora sí!; Page 9 from left to right: Eddie Sears – Editor (Ret.) The Palm Beach Post, Lino Dominguez – Publisher & Editor, Mundo Hispánico, Mary Kay Johnson – General Manager, Cox Target Media / Valpak Los Angeles; Page 10 from left to right: Annette Parks Taylor – Director of Engineering, WPXI, Eric Minor – Anchor, WTOV; Page 11 from left to right: Tom Terry – Chief Meteorologist, WFTV, Lauren Cervantes – Executive Producer, KFOX, Ray Maker – Engineer, KIRO; Page 12 from left to right: Jeanetta Gill – Traffic Coordinator, Cox Radio Tulsa, David Meszaros – Vice President and General Manager, WSB AM; Page 13 Clockwise from top: Eugene Brooks – Director of Marketing and Promotions, WFOX (top), Julie Bruner-Sells – General Sales Manager, WBLI, Kevin Vargas – Program Director, KISS (bottom); Page 14 from left to right: Peggy Booker – Collections Team Leader, Eastern Division, Christina Zara – Business Intelligence Support Manager, Alec Tuckman – Internet Consultant; Page 15 from left to right: Crestard Falhoun – Technical Customer Care Representative, Jonathan Carven – Internet Specialist. T H E 6205 Peachtree Dunwoody Road Atlanta, GA 30328 678-645-0000 N A T U R E O F BALANCE COX ENTERPRISES, INC. Cox Enterprises Consolidated Revenues 2004 ANNUAL REPORT www.coxenterprises.com In Millions of Dollars 8,858 9,882 10,750 12,000 11,552 E 7,973 9,000 6,191 C 6,000 5,304 N 4,863 A 4,358 L 3,635 A 2,844 B 3,000 94 95 96 97 98 99 00 01 02 03 04