Cox Communications 2002 Summary Annual Report

Cox Communications is a leading broadband communications company delivering video, voice and Internet services to residential and commercial customers via advanced digital broadband networks.

Financial Highlights
Cox Communications, Inc.

(Thousands of Dollars) 2002 2001   2000
Revenues $ 5,038,598 $ 4,253,203   $ 3,673,748
Operating Cash Flow(a) 1,779,239 1,420,958 (b) 1,377,322
Net Income (Loss) (274,039) 755,001   1,925,255
Capital Expenditures 1,932,416 2,205,451   2,188,168
Total Assets 25,005,149 25,061,436   24,720,824
Debt 7,315,997 8,417,675   8,543,762
Employees (end of year) 21,621 20,748   18,929
Total Basic Customers 6,280,849 6,237,888   6,193,317
Operating Cash Flow Margin 35.3% 33.4% (b) 37.5%
       
Reconciliation of operating income (loss) to operating cash flow:      
Operating Income (Loss) $ 417,417 $ (118,253)   $ 140,835
Depreciation and Amortization 1,357,906 1,539,211   1,236,487
Loss on Sale of Cable Systems 3,916 -   -
Operating Cash Flow(a) 1,779,239 1,420,958 1,377,322
 

(a) Operating cash flow is not a measure of performance calculated in accordance with accounting principles generally accepted in the Unites States. Cox defines operating cash flow as operating income before depreciation, amortization and loss on sale of cable systems.
(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.

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 includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements relating to Cox's future plans, earnings, objectives, expectations, performance and similar projections, as well as any facts or assumptions underlying these statements or projections. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from historical results or those Cox anticipates. Factors that could have a material and adverse impact on Cox's business are identified in the discussion of risk factors in Cox's Annual Report on Form 10-K. Cox undertakes no obligation to release publicly the results of any revisions to forward-looking statements made in the Summary Annual Report to reflect events or circumstances after the date of this Summary Annual Report or to reflect the occurrence of unanticipated events.