CXE-001-Cox Ent-BLUE2
Transcription
CXE-001-Cox Ent-BLUE2
Is This Any Way run TO A COMPANY ? You Bet It Is. Cox Enterprises is… 61,000 TOP NOTCH EMPLOYEES working for 6 MILLION CABLE CUSTOMERS, 16 DAILY NEWSPAPERS, 15 WEEKLY NEWSPAPERS, 13 TELEVISION STATIONS, 83 RADIO STATIONS, 97 AUTO AUCTIONS and on 71 WEB SITES.* Cox Enterprises, Inc. 1400 Lake Hearn Drive Atlanta, GA 30319 404.843.5000 Cox Enterprises, Inc. • 1999 Annual Repor t * as of March 1, 2000 Is This Any Way run TO A COMPANY ? You Bet It Is. Cox Enterprises is… 61,000 TOP NOTCH EMPLOYEES working for 6 MILLION CABLE CUSTOMERS, 16 DAILY NEWSPAPERS, 15 WEEKLY NEWSPAPERS, 13 TELEVISION STATIONS, 83 RADIO STATIONS, 97 AUTO AUCTIONS and on 71 WEB SITES.* Cox Enterprises, Inc. 1400 Lake Hearn Drive Atlanta, GA 30319 404.843.5000 Cox Enterprises, Inc. • 1999 Annual Repor t * as of March 1, 2000 Swapped Radio Stations to Build Market Clusters Pursuing a Sunbelt and station clustering strategy, Cox Radio swapped two mature Los Angeles stations for 14 stations with high growth potential in Jacksonville, Atlanta, Miami and Southern Connecticut. It’s part of a larger effort that has made Cox Radio an industry force, rising from ninth to fourth largest in terms of net revenues in three years, and increasing its market value from $523.8 million at our IPO date to $2.3 billion as of February 29, 2000. Launched the Most Advanced Printing Facility in North America The Cox-owned Dayton Daily News is now being produced at the new Dayton Print Technology Center – an impressive 260,000 square foot center that will pay for itself through production efficiencies. Already, the center prints regional editions of Investor’s Business Daily and beginning in 2001, it will print portions of the Sunday New York Times. Announced $12 Billion of Acquisitions and Investments 1999 was our most active year ever on the acquisition and investment front. The majority of activity was in Cox Communications, which spent more than $10 billion to acquire cable TV operations serving more than 2 million customers. We also purchased TV, radio and auto auction assets, built a highly automated newspaper print technology center, and made key investments in new media and Internet ventures that strengthened our competitiveness across the company. Processed Nearly 7,000,000 Automobiles in the U.S. We solidified our position as a pre-eminent player in automotive commerce by expanding Manheim Auctions, Inc. into new domestic and international markets, launching AutoTrader.com®, the world’s largest online used car marketplace, and expanding Manheim Interactive to serve auto dealers, manufacturers and fleet management companies via the web. $6,097.3 $5,223.5 COX ENTERPRISES More Than Doubled Revenue Over a Five-Year Period $4,791.9 Acquisitions and strong internal growth at Cox’s traditional media companies and at Manheim Auctions, Inc. added to the company’s top line. In addition, we saw gains in revenue from a growing stable of Internet businesses. $4,289.0 KEY ACCOMPLISHMENTS FOR 1999 $3,634.8 $2,844.4 $2,637.7 $2,486.3 $2,314.5 $1,964.9 $2,085.4 Broadened Cable to a Full-Service Provider Built the Top-Rated Local Media Sites in the U.S. We continued the aggressive evolution of Cox Communications into a fullservice broadband communications company. We added 74,000 telephone customers, 120,000 high-speed Internet customers and 190,000 digital-cable customers; doubled sales of advanced communications services to business clients, and achieved consistent growth of our core cable TV service. CONSOLIDATED R E V E N U E S* Cox Interactive Media is operating the highest rated network of local web sites in the U.S. The performance of AccessAtlanta.com and other sites around the country confirms that consumers and advertisers alike are drawn to local sites that simplify people’s lives and leverage the brands and content of Cox’s newspaper and broadcasting properties and the broadband distribution power of Cox Communications. [IN MILLIONS] 89 90 91 92 93 94 95 96 97 98 99 *Amounts have been restated to reflect the discontinuance of Rysher’s television operations. A MESSAGE FROM JIM KENNEDY The second story that illustrates how we run our business is one that is just beginning to be written. It is the story of the Internet and how we are embracing it. The Internet is a vastly different medium from those that have come before, and it represents an extraordinary opportunity for Cox. We have embarked on a full-scale effort to exploit the Internet – as a new technology, an investment vehicle, a communications medium, and a means for enhancing our traditional businesses. And we’re seeing some terrific results. Already in 2000, Manheim is selling more than 240 cars a day through the Internet, up 122% over 1999. And we’ve built new Internet brands – Manheim Interactive and AutoTrader.com – to capitalize on our strength in the auto auctions business. Cox Communications is providing customers with high-speed Internet access and the result has been noteworthy: data revenues increased to $56 million in 1999 from $22 million in 1998. You can search and browse our newspaper classifieds online. Cox Interactive Media operates 70 locally focused consumer web sites, making us one of the nation’s top providers of local web content – powered by the unique content that comes from our newspapers, television and radio properties. Jim Kennedy Chairman and Chief Executive Officer Cox Enterprises, Inc. Two stories come to mind when I think about how we run our company. The first goes back over a decade. When I started in this job, we faced tough decisions about how to best grow the cable business. Thanks to the foresight of Cox Communications CEO Jim Robbins and others, we invested heavily in the potential of the broadband communications network to deliver advanced communications services – even though the market for these new services was far from certain. The result: Cable has been one of our biggest growth engines. Cox Communications’ stock value increased 49% in 1999 alone, representing a more than 600% return to shareholders since the company went public in 1995. The division’s operational excellence and reputation for customer care are unmatched in the industry. Still, we began 1999 with a new round of questions about cable. Given industry consolidation, did we have the necessary size and scale to compete? If we were bigger, would we still maintain the entrepreneurial edge and high standards that have served us so well? We answered these questions by investing more than $10 billion in new systems, increasing our customer base by more than 50% from 3.8 million to over 6 million subscribers. This bold investment does several things for us. It provides the size and scale necessary to maintain a significant industry presence. It creates further operating efficiencies. It directly supports our long-held strategy of system clustering. It provides new markets for more of our new services and new opportunities for our employees. In short, it allows us to be bigger (biggest is not necessary), and still be the best. We met our growth objectives without sacrificing our identity and strengths to the type of megadeals that have been so prevalent in the industry. This aggressive pursuit of the Internet follows the same line of thinking that served Cox so well over the years as we expanded our media businesses. Look back and you’ll see that we grew purposefully from newspapers into radio, then into television and then cable. We did it by creating and exploiting new opportunities, not by hiding from them. We intend to do the same with the Internet. Is this any way to run a company? Let the facts speak for themselves. Over a five-year period, we’ve more than doubled revenues. In 1999, Cox Communications had a 49% increase in its stock price and Cox Radio more than doubled its share price. Eight of our newspapers showed year-over-year gains in daily circulation, and four showed gains in Sunday circulation – a very strong showing in an increasingly competitive, fragmented media market. Our broadcast holdings had another record year with our long-term holdings continuing to be market leaders in local news. Millions of people visited our web sites and Cox Communications added 384,000 advancedservice subscriptions to its customer base. Our success is a reflection of the extraordinary skill and hard work of our employees. Before closing, a personal note of appreciation to one in particular, Nick Trigony, who is retiring as president of Cox Broadcasting at the end of this year. During his 14 years with us and as a leading figure in the industry, Nick has always played at the top of his game. We wish him well and look forward to the new leadership of Andy Fisher in our television group. Andy has been with Cox for many years – a great example of how we only have to look from within for the best and brightest. I’m often asked where I see our company in five years. Basically, I see us on the same trajectory – a portfolio of incredibly strong businesses leading their respective fields and growing rapidly through innovative thinking and action. I hope you are as excited about being a part of it as I am. O ur cable story is a great example of the long-term focus that has been a Cox hallmark in all of our businesses. It shows that we think as much about the next decade as we do the next quarter. While we’re always mindful of competition and shortterm challenges, we ultimately pursue those things that will build the most long-term value for the business. 1 A M E S S A G E F R O M D A V I D E A S T E R LY For over a hundred years David Easterly President and Chief Operating Officer Cox Enterprises, Inc. we’ve been running this business daily with a few simple thoughts in mind: Leverage our core strengths. One of our defining strengths is stations, television stations, cable systems, auto auctions, web sites – all serve a given market, city, town, and in some cases, even neighborhood. This is one reason why it makes sense to decentralize authority and responsibility down to the operating level. Decentralization also means that we stay close to the communities we serve and that we find ways to give back to them. In nearly all of our businesses, the power of Cox lies in the strength of our local brands and the people who stand behind them. These simple yet powerful thoughts have served us well as we have grown into a $6 billion-plus revenue business. And, they will continue to guide us as we capitalize on new opportunities. The Internet may very well hold the most expansive market potential for us in our 100-year history. To ensure an early foothold, Cox has been making investments in a variety of technology companies and web-based businesses over the past eight years. Today, these investments represent an estimated market value in excess of $3 billion. We’ve seen strong financial returns, but more importantly, most of these ventures add further long-term value by linking strategically to our core businesses. the ability to build new businesses to complement our core properties. Through the decades, we’ve always depended on the free cash flow from existing businesses to fund new ventures – from newspapers to radio to television to auto auctions and so on. Core businesses, however, contribute more than cash. Look around our company today and you’ll find whole new businesses that have grown out of the core. You’ll also find general managers, publishers, divisional officers and other senior managers who began their careers in a core business and went on to build new value in another area of the company. Customer service is the bottom line. This is such a simple concept, but one that is so often overlooked in business. Companies only prosper through customers. The best way to attract and keep customers is to exceed their expectations. “Customer-driven and customer-focused” are phrases you hear often these days. But at Cox, we’ve always tried to have a culture that quite simply exists only for the customer. I s this any way to run a company? Jim shared with you some of the financial and operating results of our success. Allow me to add the human side of the numbers. Another indicator of how we run our company is found in the 61,000 employees who come to work for Cox every day. While we can’t vouch for the satisfaction level of each and every one, we can tell you that our employees tend to stay at our company longer than the average corporation. We are extremely proud that there are still companies such as ours where you can build a varied and exciting career within the same firm. Personally, I’m starting my 31st year with the company. It’s hard to think of another time when there has been more excitement about our operations, our direction and our potential than now. It’s a great time to be in our business and a great time to be in our company. G ood execution is a function of good people. We operate many different businesses in many different markets with many different dynamics. One common thread, however, runs throughout: highly qualified people who have the authority and responsibility to do their jobs will outperform the competition. Our role is to find and develop these good people (and we find most of them within our own ranks) who know their respective businesses, and let them go out and compete. T hink local and act local. Despite our national standing as a top-ten media company and leader in auto auctions, most of our businesses are rooted in a local community. Newspapers, radio 2 1452 3 COX ENTERPRISES RUNS ITS BUSINESS THROUGH FIVE OPERATING UNITS Cox Enterprises is one of the nation’s leading media companies and operator of automobile auctions. Our major operating subsidiaries include Cox Newspapers, Inc. (newspapers, local and national direct mail advertising and customized newsletters); Cox Broadcasting, Inc. (television, Cox Radio, Inc. [NYSE: CXR] television sales rep firms and research); Cox Communications, Inc. ([NYSE: COX] cable television distribution, telephone, high-speed Internet access and other advanced broadband services); Manheim Auctions, Inc., which operates auto auctions in North America, Europe and Australia; and Cox Interactive Media, Inc., operating a network of city sites across the country. Cox Enterprises also owns an equity stake in a range of Internet businesses, including AutoTrader.com, the world’s largest source of used car listings for dealers and consumers. 3 Cox Communications, Inc. Cox Communications (NYSE: COX) is a leading broadband communications company delivering video, voice and data services to more than 6 million residential and commercial customers in 23 states via an advanced digital network. H I G H L I G H T S O F T H E Y E A R • Increased customer base more than 50% from 3.8 million to more than 6 million customers through four major acquisitions. • Operating cash flow (operating income before depreciation and amortization) grew 37% to $901.2 million. • Added 384,000 subscriptions for new advanced services (digital telephone, high-speed Internet access and digital cable), closing the year with more than 550,000 subscriptions. COX COMMUNICATIONS • Achieved 2.6% same-system customer growth in core cable business, among the highest in the industry. OBJECTIVES • Named Most Innovative Cable Company by • Continue rollout and growth of new advanced communi- Inter@ctive Week magazine. cations services – telephone, high-speed Internet access and • Enhanced our corporate branding with the “Now You’re digital cable. Living” campaign. • Seek strategic acquisitions to increase the size of the • Doubled sales to commercial customers. company and achieve an optimal level of operating efficiency and leadership presence within the communications industry. Running Our Business • Further concentrate operations in strong local and During 1999, the Cox Communications team in Orange County, California, had a “triple double” – achieving doubledigit penetration of its telephone, high-speed Internet and digital-cable services in the areas of the market where they are available. Other markets, including San Diego, Omaha, Las Vegas and Oklahoma City also scored impressive newservice growth rates. By 2004, we expect that these services will account for over a third of total annual revenues. regional clusters. STRATEGY Cox Communications’ core business strategy remains the same: to maximize the power of our broadband network to deliver multiple communications services. In doing so, we leverage our core strengths: geographically clustered operations; a technologically advanced network; strong commitment to customers and community service; highly skilled employees; and financial strength and stability. 4 MORE SERVICES. MORE CUSTOMERS. MORE SUCCESS. Cox Communications customer service reps have signed up hundreds of thousands of high-speed Internet, digital-cable and digital telephone customers. We also have maintained solid, consistent growth in our core cable service. Meanwhile, Cox Business Services doubled commercial revenues in 1999. Throughout all this growth and expansion, commitment to the company’s core business strategy has remained steadfast: Maximize the power of our broadband network to deliver multiple communications services that make customers’ lives easier, more enjoyable and more productive, and strengthen the fundamental value of Cox Communications. Cox Newspapers, Inc. Cox Newspapers is one of the nation’s largest newspaper publishing enterprises whose primary business is producing market-leading daily and weekly newspapers. The company also operates direct mail businesses, distributes classified advertising publications and customized newsletters, and owns one-third of a newsprint manufacturing business. H I G H L I G H T S O F T H E Y E A R • Increased operating income 19 % year over year. • The quality of our newspapers was increasingly recognized. The Columbia Journalism Review ranked our four largest papers in the top 100 in the country, two of them in the top 25. Another source rated the Atlanta Journal-Constitution third in the U.S. • Opened an advanced production facility in Dayton, Ohio, signaling our commitment to the market where Governor James M. Cox began his newspaper publishing career 101 years ago. • Our one-third owned SP Newsprint operation acquired a mill in Newberg, Oregon. Our ability to produce newsprint now COX NEWSPAPERS matches our consumption 1:1. • Acquired Cox CustomMedia, a publisher of targeted newsletters OBJECTIVES currently serving approximately 15% of large apartment developments in the U.S. This business is being expanded to office • Grow our solid position in newspapers, direct marketing park, retail and other categories. • Trader Publishing (owned 50% by Cox) grew its two-year-old and classified publications in the face of competition from Employment Guide publications to nearly 50 markets, adding a proliferating number of information sources. an important new category to its line of successful classified • Expand our distribution and audience levels in the metro advertising publications. and community markets we serve. • Cox Newspapers geared up to serve high-tech readers and advertisers with the kick-off of a new Technopolis section in our Austin American-Statesman and an expanded technology- STRATEGIES focused sales force at the Atlanta Journal-Constitution. • Continue to be the premier source of local news for readers and display and classified advertising for our advertisers. Running Our Business • Seek opportunities to expand our core competencies: Cox Newspapers has a strong tradition of doing the right thing – sometimes in unlikely places. After the Iron Curtain came down in 1989, we invested $5 million for a minority stake in the newspaper of the Polish Solidarity Movement – the first independent voice in that communist country. Today, Gazeta Wyborcza has a daily circulation of 560,000 and, after an initial public offering, a market capitalization of nearly $2 billion (U.S.). Closer to home, Atlanta Journal-Constitution staff writer Jane Hansen did the right thing this year by revisiting the Georgia foster care system that she had reported on a decade ago. To her horror, she discovered a system many thought fixed had only worsened with time. Hansen reported that an average of three youngsters a week die in a climate of lax state rules and regulations. Subsequently, the Georgia legislature passed dramatic new laws to protect Georgia children due in part to her reporting. local news and information and the distribution of advertising messages. 6 COXNET: SHARING THE WEALTH The 1996 Olympics in Atlanta signaled the beginning of CoxNet, a wide area network that takes sharing and cooperation to a new level. CoxNet allows for the easy exchange of text, photos, graphics, news pages and, increasingly, advertising and marketing material. Editors at the Cox papers can browse for stories and pages that their colleagues are producing or access 10 ready-to-use pages a week on subjects from travel to food to NASCAR to technology. Another feature of CoxNet is AdShare where artists and salespeople, particularly at Cox community newspapers, can browse for spec ads to offer potential advertisers. The Newspaper Association of America honored AdShare with its coveted Best Practices award in 1999. Atlanta THE LUFKIN DAILY NEWS, Lufkin, Texas sells ad space on this CoxNet page. THE MARSHALL NEWS MESSENGER, Marshall, Texas opts for local recipes to complete the lead story. THE DAILY REFLECTOR, Greenville, North Carolina adds a local column on food facts. 7 Cox Broadcasting, Inc. Cox Broadcasting is a diversified television and radio company. Cox Radio, part of this operating unit, is a publicly traded company (NYSE: CXR) and the industry’s fourth largest radio operator in terms of net revenues. In addition to its broadcasting portfolio, Cox Broadcasting also operates three television sales rep firms, making us the number-one entity in this industry, and a fullservice research firm. H I G H L I G H T S O F T H E Y E A R • Maintained the number-one position in all of our long-held television markets and saw rapid growth in our three newer markets: Reno (NV), El Paso (TX) and Seattle. • Purchased KICU-TV San Jose/San Francisco (March 2000), giving Cox Broadcasting two stations in the number-five market in the country and a pre-eminent position in local sports broadcasting. • Expanded our WSB radio group in Atlanta to five stations in this high-growth market. COX BROADCASTING • Strengthened our radio market clusters by swapping two stations in Los Angeles for 14 stations in Atlanta, Jacksonville, OBJECTIVES Miami and Southern Connecticut – all areas with great • Maintain our number-one station rankings and move more growth potential. properties into this top position. • Diversified our television sales rep business. In addition to • Continue to grow profitably in an environment that’s dramat- national spot advertising time, our reps are now selling “unwired” ically changing and becoming increasingly competitive. networks (groups of TV stations that are not a part of a traditional broadcast network), Major League Baseball networks and Canadian business networks. STRATEGIES • Pursue second-station TV purchases in key markets where possible and implement a regional strategy to maximize Running Our Business synergies among our properties. One of the things we do at Cox Broadcasting is adhere to a very distinct operating model. Our stations put heavy emphasis on research to find out exactly what people want to listen to and watch. It’s our basic approach and it works. We apply it to all our stations as well as acquisitions and that’s one big reason we are so successful turning stations around and making start-ups profitable. We also set an atmosphere where people are not afraid to fail so they’ll take a chance and try new things. • Develop new sources of non-traditional television and radio revenue such as off-air events and promotions. • Use meticulous research to support marketing and content decisions. • Broaden our television news and the marketing behind it. • Continue to enhance our Sunbelt radio market clusters and pursue opportunities to buy more high-growthpotential stations. • Foster the growth and development of our employees so they can take on new management responsibility. 8 NUMBER ONE AND GETTING BETTER It’s difficult to achieve double-digit earnings growth two years in a row but KTVU-TV (San Francisco) made it happen. And that’s not all. This top-ranked station grew ratings, revenues and market share, too. KTVU holds broadcast rights for every professional sports team in the region except one and KICU-TV San Jose/San Francisco, Cox Broadcasting’s new acquisition, is the flagship for Golden State Warriors basketball and the Oakland Athletics baseball team. Together the two stations are a powerhouse in this top-five TV market. KTVU-TV San Francisco WBLI-FM Long Island TURBO TURNAROUND STORY WBLI-FM, Long Island, N.Y., was a Top-40 radio station suffering from ratings problems when Cox Radio acquired it in 1998. Today, just 20 months later, WBLI has increased its weekly audience by 28%. Management drastically reduced the station’s commercial inventory, hired new talent, and executed a focused strategic plan set by Cox Radio. It all started with the station’s sold-out Summer Jam concert at the beautiful 15,000 seat Jones Beach Theatre, kicking off the station’s new image, new logo, and underscoring Cox Radio’s mission to put listeners, advertisers, and communities first. 9 Manheim Auctions, Inc. Manheim is the highest volume operator of wholesale auto auctions in the world with 97 locations in North America, Europe and Australia. The company is also the leader in automotive Internet commerce serving the public through AutoTrader.com and car dealers through Manheim Interactive. In addition, Manheim Auctions provides dealership management systems, paintless dent removal and vehicle certification programs for used car dealers. H I G H L I G H T S O F T H E Y E A R • Posted our fifth consecutive year of double-digit revenue growth in our core business. • Acquired new U.S. auctions in Louisville, KY; Cincinnati, OH; Keystone, PA; and Charleston, SC. • Expanded our DentWizard subsidiary to cover nearly 70% of the U.S. and acquired Dentmaster, Europe’s leading supplier of paintless dent removal. • Created Manheim Europe by acquiring and consolidating multiple United Kingdom auction chains and three French auctions. • Acquired Fowles Auction Company, the leading auction chain in Australia and New Zealand, leading to the creation of a Manheim Asia-Pacific operation. MANHEIM AUCTIONS OPERATES IN 26 STATES, PUERTO RICO, CANADA, FRANCE, THE UNITED • Advanced AutoTrader.com’s position as the clear leader in the KINGDOM, AUSTRALIA AND NEW ZEALAND. online used car category. • Sold vehicles valued at $615 million through our Manheim OBJECTIVES Online (MOL) Internet-based cyberlot system. • Help auto dealers succeed in sales, service and bottom- • Manheim Automotive Financial Services saw 27% growth in 1999. Receivables grew to $389 million. line results. • Announced plans to purchase ADT Automotive. • Provide the best quality global remarketing services to match • Increased reconditioning operations revenues by 27%, fueled the needs of global auto manufacturers. by inspection services and increased efficiencies. • Maintain our category-leading positions in the related businesses of used car ads online and paintless dent removal. • Double the size of the company every five years. Running Our Business Manheim’s business runs on relationships, and we are totally committed to serving the automotive dealer community. We do everything we know how to help dealers succeed, from providing an expanded technology support staff – now more than 80 strong – to having the finest, most modern auction sites in the industry. We spent a record $130 million on the core auction business in 1999 and plan to spend another $200 million in 2000. Manheim has earned a reputation as the partner of choice for dealers. One way we’ve done it is to operate and manage our auctions locally, where decisions can be made close to the customer. Our local managers run their businesses with a great deal of latitude, based on the particular needs of their customers and their market. This lets us move nimbly and decisively to keep service at its peak and relationships strong. STRATEGIES • Convert our auctions to multi-purpose auction and technology centers to give dealers more advanced tools to grow their profitability. • Pursue international and domestic acquisitions in all business lines. • Make a continuing commitment to R&D and new technology to help dealers and fleet owners operate more efficiently. • Stay true to our philosophy of risk-taking and decentralized management. • Expand or relocate auctions to larger facilities in markets where we are nearing capacity and see opportunities for growth. 10 CLICK AND MORTAR OPERATIONS ARE GAINING SPEED The arrival of the Internet is fueling rapid growth in the online automotive category as consumers and dealers alike are turning to the web to buy and sell cars. AutoTrader.com has become the world’s largest online used car marketplace with typically more than 1.5 million vehicles available for sale. Since the addition of certain strategic investors in August 1999, the site’s popularity has increased dramatically, and it now draws more than 5 million shoppers per month. Likewise, Manheim Interactive has had great success with car dealers. Created to help them run their businesses better, the site now boasts more than 16,500 dealer subscribers. “Whoosh,” an AutoTrader.com TV ad that appeared nationally during Super Bowl XXXIV, dramatically increased site traffic and helped build brand awareness virtually overnight. Manheim Auctions, Inc. is dedicated to helping dealers succeed in the lanes and with technology. 11 Cox Interactive Media, Inc. Cox Interactive Media operates the highest rated network of city sites in the U.S. The CIMedia network consists of 71 web sites, including 24 in major markets. By the end of 1999, the network was serving 4 million users each month. H I G H L I G H T S O F T H E Y E A R • Doubled revenue for the second year in a row. • AccessAtlanta.com was named the highest rated local site in the country. • Consolidated our position as a leader in providing local city sites. • Continued to lead our peers in basic audience consumption measures such as time on site and page views per visit. COX INTERACTIVE MEDIA • Continued to build out the network in new Cox markets such as Las Vegas, NV and Fairfax, VA. OBJECTIVES • Invested in strategic and operating ventures and partnerships • Build a profitable business by 2003, with margins equal that improve the content and service we bring to customers and to other Cox media properties. advertisers, including marketing relationships and equity posi- • Be ranked in the top five sites in every market we serve. tions with category leaders like Tickets.comTM. • Create profitable new lines of business – including local e-commerce. Running Our Business STRATEGIES Most Internet businesses run their web sites with an overemphasis on technology and under-emphasis on promotion. As a result, they are like lemonade stands – waiting to be found. And, if they are found at all, it is by accident when someone happens by. Fortunately, we have the advantage of Cox’s traditional media properties to promote and drive awareness of our products. This enables us to operate with very competitive economies of scale. Cox’s promotional assets have resulted in high in-market brand awareness and categoryleading audience growth for CIMedia’s city sites. • Recruit and retain the best Internet team to work in markets important to Cox. • Leverage content and brand position of CIMedia’s city sites. • Augment Cox assets with powerful Internet capabilities and functionality such as search and chat. • Deliver on the brand promise of “helping busy people manage their lives.” • Build a high-performance Internet sales team in major markets. 12 THINK LOCAL. ACT LOCAL. Cox Interactive Media holds true to the same philosophy that has driven the success of other Cox Enterprises business units. Namely, create an enterprise that focuses on the local culture and make it the best in its category. As a matter of fact, Jupiter Communications reports that in 1999, well over half (58%) of consumers accessed local web content monthly or more frequently. This is a 10% increase from the previous year. Jupiter projects that local online ad spending will skyrocket over five-fold in the next four years, with local’s share of the total online ad expenditure’s pie increasing from 14% ($0.5 billion) in l999 to 24% ($2.7 billion) in 2003. Local concentration is already paying off for Cox Interactive. In l999, Media Audit reported that nine of CIMedia sites were rated number one in their market: Atlanta, Austin (TX), Dayton (OH), New Orleans, Phoenix, Pittsburgh, Providence (RI) and San Diego. 13 Capitalizing On New Media Opportunities ® ™ ™ TM DIGITAL DOMAIN THE INTERNET represents an enormous and perhaps unprecedented opportunity for Cox. It is a technology platform, an investment opportunity, and a new medium all at once, and we are actively embracing its many facets. Over the past few years, Cox and our subsidiaries have pursued a range of Internet investments and taken ownership positions in technology-based companies to ensure that we maximize the opportunities in new, emerging media. Taken together, these businesses today carry an estimated market value of more than $3 billion. Many provide strategic services to Cox properties, too, adding incremental value to our business. Here are some of the key investments we’ve made and businesses we’ve built to address new media opportunities: Digital Domain is an award-winning developer of visual effects on features as well as commercials, theme-park attractions and CD-ROM titles. It has established a world-class reputation for its artistry and has been honored for its innovative work. Cox invested in Digital Domain in February 1996. eHATCHERY eHatchery is a private Internet incubator that funds early stage companies targeting e-commerce and advertising revenue opportunities on the Internet. Cox invested in eHatchery in December 1999. HEARME.COM HearMe.com is a provider of live audio chat rooms, technology for building and maintaining online communities and web sites, and is an interactive web site where members can play multiple-player online games. Cox’s investment was made in August 1997. AUTOTRADER.COM EXCITE@HOME AutoTrader.com is the world’s largest online used car marketplace. AutoTrader.com, whose web site was originally launched in May 1998 as AutoConnect.com, added new strategic partners in August 1999. Excite@Home is an Internet service and content provider, and supplier of comprehensive Internet navigation services. Providing access to the Internet by using cable instead of telephone lines, it brings the Internet to homes and businesses at higher speeds and with greater levels of service, and offers a unique online multimedia experience. Cox invested in Excite@Home in May 1996. BRIGHTSTREET.COM Brightstreet provides technology that allows secure couponing on the Internet. Cox invested in Brightstreet in December 1999. HOMESTORE.COM Homestore.com is a leading Internet destination for home and real estate information, operating a family of real estate web sites, which includes Realtor.com, the official Internet site of the National Association of Realtors. Cox initially invested in Realtor.com, predecessor to Homestore.com, in August 1998. CAREERPATH CareerPath is a leading career management site on the Internet for job seekers and employers. Cox originally invested in CareerPath in April 1997. COX INTERACTIVE MEDIA Cox Interactive Media’s (CIMedia) network includes 70 local market web sites. CIMedia, a subsidiary of Cox Enterprises, was founded in 1996. 14 The NewYork Incubator™ ™ iSTREET LABS MP3.COM iStreet Labs, a private Internet incubator, funds early stage companies targeting e-commerce and advertising revenue opportunities on the Internet. Cox's investment was made in October 1999. MP3.com is a premier provider of online music, with one of the web’s most extensive collections of digital music. The company uses the Internet and data compression technologies to enable a growing number of artists to broadly distribute and promote their music and enable consumers to conveniently access this expanding music catalogue. Cox invested in MP3.com in May 1999. iVILLAGE iVillage, a leading Internet site, is a one-stop destination for women who want practical answers to life’s questions – in a quick, safe, easy-to-use interface. Cox initially invested in iVillage in May 1997. POINTSERVE Pointserve provides online scheduling solutions for service industries seeking to harness the power of the Internet. Cox made its investment in February 2000. iXL ENTERPRISES iXL is a leading Internet services company that provides Internet strategy consulting and comprehensive Internetbased business solutions to Fortune 1000 companies and other corporate users of information technology. Cox invested in iXL in January 1999. TALK CITY Talk City is a provider of online communities and interactive services for businesses and consumers. Cox invested in Talk City in August 1998. LIBERATE TECHNOLOGIES TICKETS.COM Liberate develops software that enables interactive applications on digital set-top boxes. Liberate provides a proven middleware solution for the complex task of application development for the digital set-top boxes. Cox initially invested in Liberate in May 1999. Tickets.com is an online source for entertainment tickets, event information and related products and services. The company sells tickets through retail outlets, call centers, interactive voice response systems and the Internet. Cox initially invested in Tickets.com in August 1999. LOOKSMART TiVo LookSmart is a leading web directory and search service that creates and maintains one of the largest editorially reviewed directories of content on the web. Cox originally invested in LookSmart in May 1998. TiVo develops a consumer electronic device that acts like a digital VCR, storing real-time video on hard disks. The device also includes an Electronic Program Guide (EPG), a strong file management structure and technology that could enable video-on-demand types of applications. Cox initially invested in TiVo in July 1999. MANHEIM INTERACTIVE Wholly owned Manheim Interactive is the world leader in auto-related electronic commerce. The service allows dealers to find an exact car matching the customer’s request. Dealers also have the ability to view the vehicle’s auction location, sale date and features and interactively bid on the car in a silent cyber auction. VAL-PAK COUPONS INTERACTIVE Valpak.com contains the world’s largest database of local coupons. After selecting zip code or city along with category preferences, shoppers simply click-to-print the offers they like best. The site also includes mapping and driving directions to advertisers’ locations. Valpak.com was launched in November 1998. 15 BOARD OF DIRECTORS Barbara Cox Anthony Anne Cox Chambers Arthur M. Blank Thomas O. Cordy David E. Easterly Chairman, Chairman, President and Retired President and President and Dayton Newspapers Atlanta Newspapers Chief Executive Officer, Chief Executive Officer, Chief Operating Officer, The Home Depot, Inc. The Maxxis Group, Inc. Cox Enterprises, Inc. Atlanta Atlanta Carl R. Gross James C. Kennedy Ben F. Love Robert C. O’Leary Paul J. Rizzo Retired Senior Vice President and Chairman and Director, Chase Bank of Texas Executive Vice President and Retired Vice Chairman, Chief Administrative Officer, Chief Executive Officer, Retired Chairman and Chief Financial Officer, IBM Cox Enterprises, Inc. Cox Enterprises, Inc. Chief Executive Officer, Cox Enterprises, Inc. Retired President, Texas Bancshares, Inc. Cox Newsprint Supply Houston 16 D I R E C TO R Y O F LO C AT I O N S A N D M A N A G E M E N T Cox Enterprises, Inc. Management James C. Kennedy Chairman and Chief Executive Officer Richard J. Jacobson Vice President and Treasurer David E. Easterly President and Chief Operating Officer Marybeth H. Leamer Vice President, Human Resources Robert C. O’Leary Executive Vice President and Chief Financial Officer Michael J. Mannheimer Vice President, Materials Management Timothy W. Hughes Senior Vice President, Administration Andrew A. Merdek Vice President, Legal Affairs and Secretary Preston B. Barnett Vice President, Tax Alexander V. Netchvolodoff Vice President, Public Policy Dean H. Eisner Vice President, Business Development and Planning John C. Williams Vice President, Marketing and Communications Scott A. Hatfield Vice President and Chief Information Officer Location Cox Enterprises, Inc. 1400 Lake Hearn Drive, N.E. Atlanta, GA 30319 (404) 843-5000 Other Operations Clarendon Farms, Inc. Hualalai Land Corp. Burton, SC Kailua-Kona, HI Ted R. Moring, Farm Manager Franklin T. Boteilho, Ranch Manager Cox Logoed Apparel Lifestyle Marketing Group Marketeer Publishing Group Voice Information Services Kernersville, NC New York, Atlanta, San Diego Atlanta Atlanta Jon Schrock, President Don Dixon, President Graham Dorian, General Manager Wendy Donald, General Manager 17 Cox Communications, Inc. Locations as of March 31, 2000 Tulsa, OK Stillwater, OK Muskogee, OK Manhattan/Junction City, KS Salina, KS Wichita, KS Humboldt County, CA New England Omaha, NE Santa Barbara/Bakersfield, CA Las Vegas, NV Orange County, CA San Diego, CA Topeka, KS Dodge City/ Garden City, KS Phoenix, AZ SE Kansas Northern Virginia Hampton Roads, VA Roanoke, VA Enid, OK Rocky Mount, NC Greenville, NC New Bern, NC Jonesboro, AR West Texas Oklahoma City, OK Tucson/Sierra Vista, AZ Cleveland, OH Bentonville, AR Fayette, AR Ft. Smith, AR Russellville, AR Bossier City, LA Tyler, TX Alexandria, LA Bryan, TX Georgetown, TX Middle Georgia Pensacola/Ft. Walton Beach, FL Gainesville/Ocala, FL New Orleans, LA Victoria, TX Lake Charles, LA Baton Rouge, LA Lafayette, LA New Iberia, LA Includes operations acquired in 2000. Customer totals are as of December 31, 1999. Those operations with 15,000 or more customers are listed individually. OPERATIONS BY STATE OR REGION CUSTOMERS OPERATIONS BY STATE OR REGION ARIZONA Phoenix Tucson/Sierra Vista 617,615 132,272 New Orleans Baton Rouge Lafayette Lake Charles Alexandria Bossier City New Iberia Other ARKANSAS Fayetteville/Springdale Fort Smith Bentonville Russellville Jonesboro Other (including southwestern Missouri) 43,734 40,251 30,002 22,354 21,433 137,955 Wichita Topeka Manhattan/Junction City Southeast Kansas Salina Dodge City/Garden City Other 513,673 262,678 94,189 31,524 FLORIDA Pensacola/Ft. Walton Beach Gainesville/Ocala 157,026 89,821 164,240 48,227 22,679 18,892 17,479 15,432 20,430 NEBRASKA Omaha (including Council Bluffs, Iowa) GEORGIA Middle Georgia 264,286 150,901 60,847 36,282 30,336 20,600 15,355 75,976 KANSAS CALIFORNIA San Diego Orange County Santa Barbara/Bakersfield Humboldt CUSTOMERS LOUISIANA 173,010 NEVADA 72,478 Las Vegas NEW ENGLAND (Operation encompasses parts of Rhode Island, Connecticut and Massachusetts.) 18 339,968 431,871 Cox Communications, Inc. Locations continued NORTH CAROLINA TEXAS Greenville Rocky Mount New Bern Other 27,635 26,192 15,237 26,749 West Texas 235,317 (Includes Lubbock, Midland, Amarillo, San Angelo, Abilene and nearby areas. Also includes Clovis, New Mexico.) Bryan 48,957 Tyler 34,354 Georgetown 23,047 Victoria 20,204 Other 134,194 OHIO Cleveland area 74,972 OKLAHOMA Oklahoma City Tulsa Muskogee Stillwater Enid Other 234,827 159,402 20,020 19,222 18,554 29,199 VIRGINIA Hampton Roads Northern Virginia Roanoke 411,738 261,821 57,783 49,179 OTHER U.S. Total 6,102,419 Management James O. Robbins President and Chief Executive Officer Margaret A. Bellville Executive Vice President, Operations Alex B. Best Executive Vice President, Engineering Jimmy W. Hayes Executive Vice President, Finance and Administration Chief Financial Officer David M. Woodrow Executive Vice President, Business Development John M. Dyer Senior Vice President, Operations Patrick J. Esser Senior Vice President, Operations James A. Hatcher, Esq. Senior Vice President, Legal and Regulatory Affairs Scott A. Hatfield Senior Vice President and Chief Information Officer Jayson R. Juraska Senior Vice President, Operations Claus F. Kroeger Senior Vice President, Operations Christopher J. Bowick Vice President, Technology Development Dallas S. Clement Vice President and Treasurer J. Michael Dyer Vice President, Training and Organizational Development Ellen M. East Vice President, Corporate Communication and Public Affairs Howard B. Tigerman Controller and Chief Accounting Officer Randy V. Goad VP of Operations, Middle America Richard J. Wallace Vice President, Materials Management L. Keith Gregory Pensacola/Ft. Walton Beach, FL Robert C. Wilson Vice President, Programming Albert W. Young Vice President, Engineering, Telephone Technology Kimberly C. Edmunds Vice President, Customer Service LOCAL MANAGEMENT F. William Farina Vice President, Advertising Sales Unless otherwise noted, each of the following holds the position of Vice President/General Manager of the operation listed. Excludes operations acquired in 2000. Judith A. Henke Vice President, Human Resources David A. Bialis Oklahoma City, OK Angelina H. Li Vice President, Marketing Research Gregory Bicket New England Charles H. McElroy Vice President, Cox Business Services Franklin R. Bowers Hampton Roads, VA Leo W. Brennan Orange County, CA Richard A. Mueller Vice President, Operations Engineering Carrington F. Phillip Vice President, Regulatory Affairs Jerry Browers Regional VP, Central Arkansas Jill Campbell Las Vegas, NV James H. Renken Vice President, New Services Support Gary E. Cassard Gainesville/Ocala, FL Joseph J. Rooney Vice President, Marketing William K. Geppert San Diego, CA John P. Spalding, Esq. Vice President and Assistant General Counsel Ron A. Hammaker Cleveland, OH Jerry M. Hodge Hospitality Network Sam R. Holland Regional VP, Louisiana Gregg T. Holmes Phoenix, AZ Richard A. Hook Middle America Donald J. Karell Middle Georgia Dorothy A. Lovfald Humboldt, CA Catherine McCollough Roanoke, VA Gary T. McCollum Northern Virginia Julie O. McGovern Santa Barbara/Bakersfield, CA C. Ray Nagin New Orleans, LA Russell B. Rogers Regional VP, Northwest Arkansas Gretchen H. Shine Tucson/Sierra Vista, AZ Mike Stidham Regional VP, East Texas Frank R. Wink West Texas 19 Cox Newspapers, Inc. Locations Springfield, OH Dayton, OH Washington, D.C. Grand Junction, CO St. Louis, MO Tarboro, NC Rocky Mount, NC Norfolk, VA Elizabeth City, NC Greenville, NC Greenville, SC Atlanta, GA Waco, TX Austin, TX Newspapers Other Operations Longview, TX Marshall, TX Nacogdoches, TX Lufkin, TX Largo, FL West Palm Beach, FL Circulation 1999 DAILIES The Atlanta Constitution The Atlanta Journal Austin American Statesman (TX) The Palm Beach Post (FL) Dayton Daily News (OH) Waco Tribune-Herald (TX) Springfield News Sun (OH) The (Grand Junction) Daily Sentinel (CO) Longview News-Journal (TX) The (Greenville) Daily Reflector (NC) The Lufkin Daily News (TX) Rocky Mount Telegram (NC) The Daily Advance (Elizabeth City, NC) The (Nacogdoches) Daily Sentinel (TX) News Messenger (Marshall, TX) Palm Beach Daily News (FL) Total PUBLISHER WEEKLIES 679,352 Roger S. Kintzel 374,807 244,214 218,619 204,219 52,103 40,311 34,146 Michael A. Laosa Tom Giuffrida J. Bradford Tillson Dan C. Savage William R. Swaim George Orbanek Florida Pennysaver (West Palm Beach, FL) Tri County Shoppers News (Springfield, OH) Penny Pincher (Grand Junction, CO) Tri County Shoppers News (Rocky Mount, NC) The Duplin Times/Duplin Today (Kenansville, NC) The Enterprise (Williamston, NC) The Chowan Herald (Edenton, NC) The Beaufort-Hyde News (Bellhaven, NC) The Bertie Ledger-Advance (Windsor, NC) The Standard Laconic (Snow Hill, NC) The Farmville Enterprise (Farmville, NC) The Times-Leader (Grifton, NC) Jefferson Jimplecute (Jefferson, TX) The Weekly Herald (Robersonville, NC) Perquimans Weekly (Hertford, NC) Total 515,973 DAILY SUNDAY 327,292 105,539 185,438 170,804 156,028 40,498 32,999 29,497 29,474 20,318 14,184 13,515 11,523 39,332 23,090 16,278 15,946 12,035 Glenn McCutchen D. Jordan Whichard III Belinda Gaudet Raye P. Woodin III Tim Hobbs 8,733 10,904 Gary Borders 7,437 5,816 8,288 6,327 Phil Latham Joyce Reingold CIRCULATION 67,100 18,101 15,269 12,445 4,726 4,623 3,658 3,524 2,464 1,970 2,260 1,832 1,572 1,622 1,159,095 1,605,164 Source: Internal Annual Average Circulation as of December 31, 1999. Source: Internal Annual Average Circulation as of December 31, 1999. 20 Cox Newspapers, Inc. Other Operations Cox Target Media, Inc. LOCATION MANAGEMENT Largo, FL William B. Disbrow, President & CEO Joseph H. Bourdow, Executive V.P. of CTM and President of Val-Pak Greenville, SC St. Louis, MO Todd H. Taylor, President Mary Engelbreit, Editor-in-Chief Chad L. Richardson, General Manager Brenda Cook, President & CEO Carol Wright Cox Consumer Sampling Val-Pak Directing Marketing Systems, Inc. Cox CustomMedia d/b/a Resident Update Mary Engelbreit’s Home Companion (40% owned) PAGAS Mailing Services SP Newsprint Tarboro and Charlotte, NC Atlanta, GA Dr. James L. Burke, President & CEO (33% owned) Trader Publishing Co. Norfolk, VA Conrad M. Hall, President & CEO Washington, D.C. Andrew N. Alexander, Bureau Chief (50% owned) Washington, D.C. News Bureau Management Jay R. Smith President Susan Davidson Vice President, Human Resources Arnold S. Rosenfeld Senior Vice President and Editor-in-Chief Caroline John Vice President, Marketing, Research and Promotions Brian G. Cooper Senior Vice President Mark Mansfield President, Cox Newsprint Supply, Inc. Jay Campbell Vice President, Circulation C. Buddy Solomon Vice President, Finance and Controller Cathy B. Coffey Vice President, Advertising Jenny Trautman Director of Information Technology James A. Cooper Vice President, Operations Ron Martin Senior Editor and Editor, The Atlanta Journal-Constitution 21 Cox Broadcasting, Inc. Locations as of March 2000 Seattle, WA New York City, NY Reno, NV Stamford/Norwalk, CT Bridgeport, CT New Haven, CT Long Island, NY Pittsburgh, PA Dayton, OH Richmond, VA Louisville, KY San Francisco, CA Tulsa, OK Charlotte, NC Atlanta, GA Birmingham, Al Honolulu, HI El Paso, TX Radio Television Other Operations Jacksonville, FL Houston, TX San Antonio, TX Orlando, FL Tampa, FL Miami, FL Cox Television STATION MARKET (AND SIZE) KTVU(TV) San Francisco/ Oakland (5) KICU-TV San Jose/ San Francisco (5) WSB-TV Atlanta (10) KIRO(TV) Seattle (12) WPXI(TV) Pittsburgh (20) WFTV(TV) Orlando (22) WRDQ(TV) Orlando (22) managed by Cox WSOC(TV) Charlotte (28) WAXN(TV) Charlotte (28) WHIO-TV Dayton (56) KFOX(TV) El Paso (96) KRXI(TV) Reno (111) KAME(TV) Reno (111) managed by Cox AFFILIATION GM RANK FOX Kevin P. O’Brien 1 IND Tom Raponi 7 ABC CBS NBC ABC IND Gregory J. Stone John C. Woodin John A. Howell, III David P. Lippoff 1 3 2 1 Bruce R. Baker Bruce R. Baker Lee Armstrong Teresa S. Burgess Marty Ozer Marty Ozer – 1 5 1 2 4 5 ABC IND CBS FOX FOX UPN RANK IN TARGET FORMAT WZZK-FM WRJS-AM WODL-FM WRLR-FM WBHJ-FM WBHK-FM WAGG-AM 2 ** 7 ** 1 1 9 VP/GM Country Jeff Clark Gospel Oldies Active Rock Contemporary Hit Urban David DuBose Urban Adult Contemporary Gospel DAYTON WHIO-AM 9 News/Talk WHKO-FM 1 Country WCLR-FM 11^ Oldies WZLR-FM Oldies Donna Hall HONOLULU Source: Neilsen, November 1999. Cox Radio MARKET/STATION ATLANTA MARKET/STATION BIRMINGHAM KRTR-FM KXME-FM KGMZ-FM KGMZ-AM KINE-FM+ KCCN-FM+ KCCN-AM+ 3 3 5^ 4 1 20 Adult Contemporary Austin Vali Contemporary Hit Radio Oldies Oldies Adult Contemporary Michael Kelly Contemporary Hit Radio News/Talk/Sports HOUSTON RANK IN TARGET WSB-AM WSB-FM WJZF-FM WCNN-AM* WBTS-FM 1 3 14 25 ** WFOX-FM*+ 8 FORMAT KKBQ-FM+ 14 KKTL-FM+ 45 KLDE-FM+ 8 VP/GM News/Talk David Meszaros Adult Contemporary Jazz News/Talk Contemporary Lori Rechin-Sheridan Hit Radio Oldies Rick Mack Country Alternative Oldies JACKSONVILLE WAPE-FM*+ 1 WFYV-FM*+ 1 WKQL-FM*+ 3 WMXQ-FM*+ 8 WBWL-AM*+ 12 WOKV-AM*+ 8 22 Contemporary Hit Radio Mark Schwartz Adult Oriented Rock Oldies Adult Contemporary Sports Talk News/Talk Cox Broadcasting, Inc. Locations continued MARKET/STATION RANK IN TARGET FORMAT MARKET/STATION VP/GM 2 3^ Contemporary Hit Radio Adult Oriented Rock Adult Oriented Rock Kim Guthrie 6 2 5 13 Oldies Adult Contemporary Classic Rock Hot Adult Contemporary Brent Millar 9 2 1 19 Hot Adult Contemporary Bob Green Urban Adult Contemporary Urban Adult Contemporary Jerry Rushin Classical 9 4 9 5 6 2 3 News/Talk Bill Hendrich Country Urban Adult Contemporary Rich Reis Contemporary Hit Radio Standards Debbie Morel Classic Rock Rock Adult Contemporary KONO-AM KSMG-FM KLUP-AM KISS-FM LOUISVILLE WRKA-FM WVEZ-FM WSFR-FM WMHX-FM WEZN-FM WPLR-FM*+ WYBC-FM* WEFX-FM*+ WKHL-FM*+ WNLK-AM*+ WSTC-AM*+ WWRM-FM WBBY-FM WSUN-AM WSUN-FM WFJO-FM WHPT-FM WDUV-FM 7 5 4 24 Country Classic Rock Hot Adult Contemporary Nostaglia KRMG-AM KWEN-FM KJSR-FM KRAV-FM KGTO-AM KRTQ-FM 8 19 ** 6^ Country Classic Country Rhythmic Oldies Oldies SAN ANTONIO KCYY-FM KKYX-AM KCJZ-FM KONO-FM 1 1 3 19 9 36 27 Adult Contemporary John Ryan Adult Oriented Rock Mike Juliano Urban Adult Contemporary Classic Rock Robin Faller Oldies News/Talk/Sports News/Talk 1 ** 39 14 11 ** 1 Soft Adult Contemporary Howard Tuuri Rock Adult Contemporary ’50s Oldies Oldies Rhythmic Oldies Jay O’Connor Classic Rock Easy Listening 2 2 4 2 5 1 News/Talk Country Classic Rock Adult Contemporary Standards Active Rock Caroline Devine TULSA RICHMOND WKHK-FM+ WKLR-FM+ WMXB-FM+ WTVR-AM+ Oldies Hot Adult Contemporary Adult Standards Adult Oriented Rock TAMPA ORLANDO WDBO-AM WWKA-FM WCFB-FM WPYO-FM WHOO-AM WHTQ-FM WMMO-FM 7 17 3 SOUTHERN CT MIAMI WFLC-FM WHQT-FM WEDR-FM*+ WTMI-FM+ VP/GM SAN ANTONIO LONG ISLAND WBLI-FM WBAB-FM WHFM-FM RANK IN TARGET FORMAT Chuck Browning * Operating under a local marketing agreement or joint sales agreement. ** Ranking not applicable because station format has recently changed or station recently began operations. ^ Audience Rank information is combined because stations simulcast. + Station to be acquired by Cox Radio. Source: Arbitron 1999 Ben Reed Other Operations Harrington, Righter & Parsons, Inc. MMT Sales TeleRep The Eagle Group New York New York New York Atlanta Murray L. Berkowitz, President Jack Oken, President Steven J. Herson, President Michael Pelaia, Executive Vice President and Chief Operating Officer Management Nicholas D. Trigony President Andrew S. Fisher Executive Vice President, Television Stations Kevin P. O’Brien Executive Vice President, Television Fox/Independents John G. Boyette Senior Vice President, Finance and Administration Sterling E. Davis Vice President, Engineering Neil Johnston Vice President, Development Thomas E. McClendon Vice President and Director of Research William M. Spell Vice President, Sales and Marketing Judith L. Versteeg Vice President, Human Resources Steve Gasque Bureau Chief, Washington Bureau Steven J. Herson President and General Manager, TeleRep, Inc. 23 Jack Oken President and General Manager, MMT Sales Murray L. Berkowitz President and General Manager, Harrington, Righter & Parsons, Inc. Tim Helfet President, Rysher Entertainment COX RADIO Nicholas D. Trigony Chairman Robert F. Neil President and Chief Executive Officer Richard A. Ferguson Vice President and Co-Chief Operating Officer Marc W. Morgan Vice President and Co-Chief Operating Officer Maritza C. Pichon Chief Financial Officer Robert B. Green Group Vice President Richard A. Reis Group Vice President Roxann Miller Vice President, Research Manheim Auctions, Inc. Locations as of December 31, 1999 Seattle, WA Grantville, PA Manheim, PA Keystone, PA Portland, OR Detroit, MI Milwaukee, WI Denver, CO Fresno, CA Bordentown, NJ Chicago, IL Salt Lake City, UT Hayward, CA Newburgh, NY Boston, MA Clifton Park, NY New Castle, Ontario Toronto, Ontario Minneapolis, MN Commerce City, CO Kansas City, MO St. Louis, MO Columbus, OH Cincinnati, OH Granite City, IL Pittsburgh, PA Fredericksburg, VA Harrisonburg, VA Louisville, KY Statesville, NC Las Vegas, NV Springfield, MO Nashville, TN High Point, NC Darlington, SC Phoenix, AZ Atlanta, GA Tucson, AZ Los Angeles, CA Anaheim, CA Fontana, CA Riverside, CA Dallas, TX El Paso, TX Ft. Worth, TX San Antonio, TX Scott, LA Baton Rouge, LA Pensacola, FL New Orleans, LA Houston, TX Charleston, SC Orlando, FL Daytona Beach, FL Clearwater, FL Lakeland, FL Tampa, FL Canovanas, PR 30 Locations in the United Kingdom, France, Australia, and New Zealand Automobile Auctions AUCTION CITY AUCTION CITY 166 Auto Auction American Auto Auction Arizona Auto Auction Atlanta Auto Auction Auction Way Sales Baton Rouge Auto Auction Bay Cities Auto Auction Big H Auto Auction Bishop Brothers Auto Auction Butler Auto Auction California Auto Dealers Exchange Charleston Auto Auction Clanton’s Auto Auction Colorado Auto Auction Daytona Auto Dealers Exchange Dealers Auto Auction of Dallas Denver Auto Auction El Paso Auto Auction Springfield, MO Boston, MA Phoenix, AZ Atlanta, GA Chicago, IL Baton Rouge, LA Hayward, CA Houston, TX Atlanta, GA Pittsburgh, PA Anaheim, CA Charleston, SC Darlington, SC Commerce City, CO Daytona Beach, FL Dallas, TX Denver, CO El Paso, TX Florida Auto Auction of Orlando Ft. Worth Auto Auction Fredericksburg Auto Auction Fresno Auto Dealers Auction Georgia Dealers Auto Auction Greater Chicago Auto Auction Greater Tampa Bay Auto Auction Harrisonburg Auto Auction High Point Auto Auction Imperial Auto Auction Kansas City Auto Auction Keystone Auto Auction Lafayette Auto Auction Lakeland Auto Auction Los Angeles Dealers Auto Auction Louisville Auto Auction Manheim Auto Auction Manheim’s Caribbean Auto Dealers Exchange Orlando, FL Ft. Worth, TX Fredericksburg, VA Fresno, CA Atlanta, GA Chicago, IL Tampa, FL Harrisonburg, VA High Point, NC Lakeland, FL Kansas City, MO Grantville, PA Scott, LA Lakeland, FL Los Angeles, CA Louisville, KY Manheim, PA Canovanas, PR 24 Manheim Auctions, Inc. Locations continued AUCTION CITY AUCTION CITY Manheim’s Central Florida Auto Auction Manheim’s Cincinnati Auto Auction Manheim’s Gateway Auto Auction Manheim’s Greater Las Vegas Auto Auction Manheim’s Greater Nevada Auto Auction Manheim’s Greater New Orleans Auto Auction Manheim’s Greater Phoenix Auto Auction Manheim’s Metro Detroit Auto Auction Manheim’s Oshawa Dealers Exchange Orlando, FL Southern California Auto Auction Southwest Auto Auction St. Louis Auto Auction St. Pete Auto Auction Statesville Auto Auction Tennessee Auto Auction Texas Hobby Auto Auction Toronto Auto Auction Fontana, CA Phoenix, AZ St. Louis, MO Clearwater, FL Statesville, NC Nashville, TN Houston, TX Toronto, Ontario, Canada Salt Lake City, UT Manheim’s Pensacola Auto Auction Manheim’s Tuscon Auto Auction Metro Milwaukee Auto Auction Minneapolis Auto Auction National Auto Dealers Exchange Newburgh Auto Auction Northway Exchange Ohio Auto Auction Orlando Orange County Auto Auction Portland Auto Auction Riverside Auto Auction San Antonio Auto Auction South Seattle Auto Auction Granite City, IL Las Vegas, NV New Orleans, LA Phoenix, AZ Detroit, MI New Castle, Ontario, Canada Pensacola, FL Tuscon, AZ Milwaukee, WI Minneapolis, MN Bordentown, NJ Newburgh, NY Clifton Park, NY Columbus, OH Orlando, FL Portland, OR Riverside, CA San Antonio, TX Seattle, WA Utah Auto Auction Other Operations AutoTrader.com (majority owned) Dent Wizard (majority owned) Manheim Auctions Government Services Manheim Automotive Financial Services Manheim Dealer Support Services Manheim Europe (majority owned) Manheim Interactive Manheim Pacific (majority owned) Atlanta, GA St. Louis, MO Atlanta, GA Atlanta, GA Orlando, FL U.K. and France Atlanta, GA Australia and New Zealand Management Dennis Berry President and Chief Executive Officer Tony Giurato Vice President, Special Operations Jamie D. Porter Vice President, Reconditioning Operations David Fowles Managing Director, Manheim Asia-Pacific Darryll M. Ceccoli Chief Operating Officer Michael J. Langhorne Vice President, Financial Services Robert E. Gartin Senior Vice President, Finance and Administration Leon L. Lyon Vice President and General Manager – MAFS John E. Stower Vice President, Operations, Region I Victor A. “Chip” Perry President and Chief Executive Officer, AutoTrader.com David A. Harrison Senior Vice President, Operations Michael F. Moumousis Vice President, National Accounts Ralph M. Liniado Senior Vice President, Development Robert D. Mowers Vice President, Operations, Region IV Michael Christian Vice President, National Accounts Thomas J. Nohstadt Vice President, Internet Services Richard E. Deckard Vice President and Chief Information Officer Louis A. Fazio Vice President, Factory Operations Daniel E. Thomas Vice President, Operations, Region V William A. Tiedemann Vice President, Special Operations Gordon M. Warren Vice President, Sales Berta M. Phelps Vice President, Operations, Region III Robert W. Pohle Vice President, Special Business Development 25 Keith N. Williams Vice President, Operations, Region II John Bailey Managing Director, Manheim Europe Andy Henshaw Managing Director, Portfolio Jim McKnight Executive Vice President and Chief Operating Officer, AutoTrader.com Hal Logan President and Chief Executive Officer, Manheim Interactive Joe Luppino Chief Operating Officer, Manheim Interactive Kevin Beattie President, Dent Wizard Michael Pinnock President, Tracker Cox Interactive Media, Inc. Locations as of January 31, 2000 Seattle, WA Syracuse, NY Providence, RI Reno, NV Pittsburgh, PA Dayton, OH Fairfax, VA Omaha, NE San Francisco, CA Grand Junction, CO Virginia Beach, VA Las Vegas, NV Los Angeles, CA Orange County, CA San Diego, CA Greenville, NC Charlotte, NC Tulsa, OK Oklahoma City, OK Phoenix, AZ El Paso, TX City Sites Brand Extension Sites Atlanta, GA Birmingham, AL Longview, TX Waco, TX Austin, TX San Antonio, TX New Orleans, LA Tampa, FL Orlando, FL West Palm Beach, FL Miami, FL Major Market City Sites PRODUCT AccessAtlanta.com Austin360.com GoCarolinas.com ActiveDayton.com AccessLasVegas.com SoFla.com InsideNewOrleans.com AccessOKC.com DiscoverOmaha.com OCNow.com InsideCentralFlorida.com AccessArizona.com RealPittsburgh.com OceanStateOnline.com SanAntonio360.com SanDiegoInsider.com BayInsider.com SeattleInsider.com Sybercuse.com DiscoverTulsa.com GoHamptonRoads.com PalmBeachInteractive.com MARKET Atlanta, GA Austin, TX Charlotte, NC Dayton, OH **Fairfax, VA Las Vegas, NV **Los Angeles, CA Miami, FL New Orleans, LA Oklahoma City, OK Omaha, NE Orange County, CA Orlando, FL Phoenix, AZ Pittsburgh, PA Providence, RI San Antonio, TX San Diego, CA San Francisco, CA Seattle, WA Syracuse, NY Tulsa, OK Virginia Beach, VA W. Palm Beach, FL SITE ADDRESS COX PARTNER www.accessatlanta.com www.austin360.com www.gocarolinas.com www.activedayton.com AJC, WSB-TV, CXR stations Austin American-Statesman WSOC-TV DDN, Springfield Sun, WHIO-TV, CXR stations CCI CCI CXR market clusters CXR stations CCI CCI CCI CCI WFTV, CXR stations CCI WPXI-TV CCI CXR stations CCI KTVU-TV KIRO-TV formerly CXR, currently Clear Channel CCI, CXR stations CCI Palm Beach Post www.accesslasvegas.com www.sofla.com www.insideneworleans.com www.accessokc.com www.discoveromaha.com www.ocnow.com www.icflorida.com www.accessarizona.com www.realpittsburgh.com www.oso.com www.SanAntonio360.com www.sandiegoinsider.com www.bayinsider.com www.seattleinsider.com www.sybercuse.com www.discovertulsa.com www.gohamptonroads.com www.gopbi.com **Under construction 26 Cox Interactive Media, Inc. Brand Extensions – Newspapers PRODUCT AJC.com Statesman.com DaytonDailyNews.com GJSentinel.com News-Journal.com PalmBeachPost.com Reflector.com AccessWaco.com SpringfieldNewsSun.com PalmBeachDailyNews.com MARKET Atlanta, GA Austin, TX Dayton, OH Grand Junction, CO Longview, TX Palm Beach, FL Greenville, NC Waco, TX Springfield, OH Palm Beach, FL SITE ADDRESS COX PARTNER www.ajc.com www.statesman.com www.daytondailynews.com www.gjsentinel.com www.news-journal.com www.pbpost.com www.reflector.com www.accesswaco.com www.springfieldnewssun.com www.pbdailynews.com The Atlanta Journal and Constitution Austin American Statesman Dayton Daily News The (Grand Junction) Daily Sentinel Longview News-Journal The Palm Beach Post The (Greenville) Daily Reflector Waco Tribune-Herald Springfield News-Sun Palm Beach Daily News Brand Extensions – TV PRODUCT WSBTV.com WSOCTV.com WHIOTV.com KFOXTV.com WFTV.com WPXI.com KTVU.com KIRO.com MARKET Atlanta, GA Charlotte, NC Dayton, OH El Paso, TX Orlando, FL Pittsburgh, PA San Francisco, CA Seattle, WA SITE ADDRESS COX PARTNER www.wsbtv.com www.wsoctv.com www.whiotv.com www.kfoxtv.com www.wftv.com www.wpxi.com www.ktvu.com www.kirotv.com WSB TV WSOC TV WHIO TV KFOX TV WFTV WPXI TV KTVU TV KIRO TV SITE ADDRESS COX PARTNER www.wsbradio.com www.accessatlanta.com/partners/b98 www.wjzf.com www.thebeat955.com www.wzzk.com www.wodl.com www.star999.com www.whioam.com www.whkofm.com www.oldies95fm.com www.coastfm.com www.hot105fm.com www.580wdbo.com www.k92.com www.star94fm.com www.whtq.com www.wmmo.com www.953party.com www.1067jamz.com www.kissrocks.com www.kkyx.com www.klup.com www.kono101.com www.magic105.com www.y100fm.com www.1073thebay.com www.949online.com www.krmg.com WSB AM WSB FM WJZF FM WBTS FM WZZK FM/AM WODL FM WEZN FM WHIO AM WHKO FM WCLR FM/WZLR FM WFLC FM WHQT FM WDBO AM WWKA FM WCFB FM WHTQ FM WMMO FM WPYO FM KCJZ FM KISS FM KKYX AM KLUP AM KONO FM KSMG FM KCYY FM WBBY FM WWRM FM KRMG AM Brand Extensions – Radio PRODUCT WSBradio.com B98.5FM WJZF.com TheBeat955.com WZZK.com WODL.com STAR999.com WHIOAM.com WHKOFM.com Oldies95FM.com CoastFM.com Hot105FM.com 580WDBO.com K92.com STAR94FM.com WHTQ.com WMMO.com 953Party.com 1067Jamz.com KissRocks.com KKYX.com KLUP.com KONO101.com Magic105.com Y100FM.com 1073TheBay.com 949Online.com KRMG.com MARKET Atlanta, GA Atlanta, GA Atlanta, GA Atlanta, GA Birmingham, AL Birmingham, AL Bridgeport, CT Dayton, OH Dayton, OH Dayton, OH Miami, FL Miami, FL Orlando, FL Orlando, FL Orlando, FL Orlando, FL Orlando, FL Orlando, FL San Antonio, TX San Antonio, TX San Antonio, TX San Antonio, TX San Antonio, TX San Antonio, TX San Antonio, TX Tampa, FL Tampa, FL Tulsa, OK 27 Cox Interactive Media, Inc. Corporate Site PRODUCT SITE ADDRESS CIMedia.com www.cimedia.com Management Peter M. Winter President Michael Q. Parker Group Vice President, Division 1 R. Scott Whiteside Vice President, Chief Operating Officer Gary R. Mills Group Vice President, Division 2 J. Lacey Lewis Vice President, Chief Financial Officer Stephen N. Becker Group Vice President, Division 3 Dave Hills Vice President, Sales Steven Rosenboro General Counsel Tom Bates Vice President, Product and Marketing Joseph Y. Gallo Chief Technology Officer Keith L. Herndon Vice President, Planning and Product Development For more information about Cox Enterprises, please contact: All trademarks and service marks referenced in this document are the property of their respective companies. Brian Farley, Director – Corporate Communications Cox Enterprises, Inc. 1400 Lake Hearn Drive Atlanta, GA 30319 1-877-4COXNEWS Cox Enterprises is an Equal Opportunity Employer. 28 Is This Any Way run TO A COMPANY ? You Bet It Is. Cox Enterprises is… 61,000 TOP NOTCH EMPLOYEES working for 6 MILLION CABLE CUSTOMERS, 16 DAILY NEWSPAPERS, 15 WEEKLY NEWSPAPERS, 13 TELEVISION STATIONS, 83 RADIO STATIONS, 97 AUTO AUCTIONS and on 71 WEB SITES.* Cox Enterprises, Inc. 1400 Lake Hearn Drive Atlanta, GA 30319 404.843.5000 Cox Enterprises, Inc. • 1999 Annual Repor t * as of March 1, 2000