|
|
What Our Leaders Accomplished in 2003:
Increased revenues 14%
Grew operating cash flow(a)19%
Generated free cash flow(a) of $306.6
million
Expanded digital cable, Internet and phone services
Launched new advanced services including high-definition TV
Won customer service and satisfaction awards
Financial Highlights
Cox Communications, Inc.
| (Thousands of Dollars) |
2003 |
|
|
2002 |
|
|
2001 |
|
 |
|
|
|
|
|
|
|
|
Revenues |
$ 5,758,868 |
|
|
$ 5,038,598 |
|
|
$ 4,253,203 |
|
Operating Cash Flow (a) |
2,116,872 |
|
|
1,779,239 |
|
|
1,420,958 |
(b) |
Operating Income (Loss) |
586,866 |
|
|
417,417 |
|
|
(118,253 |
) |
Net (Loss) Income |
(137,801 |
) |
|
(274,039 |
) |
|
755,001 |
|
Capital Expenditures |
1,561,331 |
|
|
1,932,416 |
|
|
2,205,451 |
|
Total Assets |
24,417,576 |
|
|
25,015,339 |
|
|
25,061,436 |
|
Debt |
7,011,800 |
|
|
7,315,997 |
|
|
8,417,675 |
|
Employees (end of year) |
22,150 |
|
|
21,621 |
|
|
20,748 |
|
Total Basic Video Customers |
6,338,294 |
|
|
6,280,849 |
|
|
6,237,888 |
|
Total Customer Relationships |
6,626,451 |
|
|
6,480,638 |
|
|
6,338,989 |
|
Operating Cash Flow Margin(c) |
36.8% |
|
|
35.3% |
|
|
33.4% |
(b) |
|
|
|
|
|
|
|
|
|
Reconciliation of operating
cash
flow to operating income (loss)(d): |
|
|
|
|
|
|
|
Operating cash flow(a) |
2,116,872 |
|
|
1,779,239 |
|
|
1,420,958 |
(b) |
Depreciation and amortization |
(1,530,475 |
) |
|
(1,357,906 |
) |
|
(1,539,211 |
) |
Gain (loss) on sale of cable systems |
469 |
|
|
(3,916 |
) |
|
– |
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
586,866 |
|
|
417,417 |
|
|
(118,253 |
) |
|
|
|
|
|
|
|
|
|
Reconciliation of free
cash flow to cash
provided by operating activities(d): |
|
|
|
|
|
|
|
Free cash flow(a) |
306,640 |
|
|
(159,577 |
) |
|
(1,406,683 |
) |
Capital expenditures |
1,561,331 |
|
|
1,932,416 |
|
|
2,205,451 |
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
1,867,971 |
|
|
1,772,839 |
|
|
798,768 |
|
|
|
|
|
|
|
|
|
|
| (a) |
Operating cash flow and free cash flow are not measures
of performance calculated in accordance with accounting
principles generally accepted in the United States (GAAP).
Cox defines operating cash flow as operating income
(loss) before depreciation, amortization and gain (loss)
on sale of cable systems and free cash flow as cash
provided by operating activities less capital expenditures. |
| (b) |
Operating cash flow and the operating cash flow
margin for the year ended December 31, 2001 include
a one-time non-recurring charge of $150.2 million related
to the continuation of Excite@Home high-speed Internet
services and the transition to Cox High Speed Internet
service. |
| (c) |
Operating cash flow margin is defined as operating
cash flow as a percentage of revenues. |
| (d) |
These tables represent a reconciliation of non-GAAP
measures to the most directly comparable GAAP measures. |
Cox’s chief executive officer and chief financial officer
filed the certifications required by Section 302 of the Sarbanes-Oxley
Act of 2002 as exhibits to Cox’s Annual Report on Form
10-K for 2003.
Cox is presenting condensed consolidated financial information
in this Summary Annual Report. For comprehensive consolidated
financial data, please refer to Cox’s Annual Report
on Form 10-K. This Summary Annual Report contains “forward-looking
statements.” These statements relate to, among other
things, growth opportunities and the introduction of new products
and services. Reference is made to Cox’s Form 10-K for
2003 as filed with the Securities and Exchange Commission
for factors that could cause actual results to differ materially
from those expressed or implied in these forward-looking statements,
including without limitation, competition within the broadband
communications industry and successful implementation of new
services and other operating initiatives. |
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