Cox Communications Announces Financial Guidance for Fiscal Year 2004
ATLANTA--(BUSINESS WIRE)--Dec. 11, 2003--Cox Communications, Inc. (NYSE: COX) today announced its financial guidance for fiscal year 2004, indicating another year of solid growth for its multi-service broadband business.
Jimmy Hayes, Cox's Executive Vice President of Finance and Chief Financial Officer, provided details of the company's forward looking financial guidance during USB Warburg's 31st Annual Media Week Conference in New York, N.Y.
"During 2004, investors will see continued demand for advanced video, voice and data services, as well as for new services such as HDTV and DVR from Cox," said Hayes. "Our complete portfolio of advanced telecommunications services and our track record of stellar customer service have positioned us well against the competition."
The company's 2004 guidance assumes continued growth in its core business, as well as in advanced services, solid growth in advertising sales and increasing revenues for its commercial services division. Specific guidance for 2004 includes:
- Total revenue growth to increase by 11.5% to 12.5% over 2003
- Operating cash flow to increase by 14% to 15% over 2003
- Capital expenditures to be approximately $1.35 to $1.4 billion
- Basic video customer growth over 2003 to be just under 1.0%
- New-service revenue generating unit (RGU) net additions to be between 1.0 to 1.1 million
- The company expects to be free cash flow positive for the year
Mr. Hayes' presentation will be webcast today at approximately 9:30 a.m. EST at http://event.streamx.us/event/default.asp?event=UBS20031208.
Cox Communications (NYSE: COX), a Fortune 500 company, is a multi-service broadband communications company serving approximately 6.6 million total customers, including 6.3 million basic cable subscribers. Cox is the nation's fourth-largest cable television provider, and offers both traditional analog video programming under the Cox Cable brand as well as advanced digital video programming under the Cox Digital Cable brand. Cox provides an array of other communications and entertainment services, including local and long distance telephone under the Cox Digital Telephone brand; high-speed Internet access under the brands Cox High Speed Internet and Cox Express; and commercial voice and data services via its affiliate Cox Business Services. Local cable advertising, promotional opportunities and production services are sold under the Cox Media(SM) brand. Cox is an investor in programming networks including Discovery Channel. More information about Cox Communications can be accessed on the Internet at www.cox.com.
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). Operating cash flow is defined as operating income before depreciation and amortization and gain (loss) on the sale of cable systems. Free cash flow is defined as cash provided by operating activities less capital expenditures. Cox believes that operating income and net cash provided by operating activities are the mostly directly comparable GAAP financial measures to operating cash flow and free cash flow, respectively. Cox is unable to reconcile these non-GAAP measures to their most directly comparable GAAP measures on a forward-looking basis primarily because it is impractical to project the timing of certain transactions, such as the initiation of depreciation relative to network construction projects.
Statements in this release, including statements relating to growth opportunities, revenue and cash flow projections and introduction of new products and services, are "forward-looking statements", as defined by the Private Securities Litigation Reform Act of 1995. These statements are statements that relate to Cox's future plans, earnings, objectives, expectations, performance and similar projections, as well as any facts or assumptions underlying these statements or projections. Actual results may differ materially from the results expressed or implied in these forward-looking statements, due to various risks, uncertainties or other factors. These factors include competition within the broadband communications industry, our ability to achieve anticipated subscriber and revenue growth, our success in implementing new services and other operating initiatives, our ability to generate sufficient cash flow to meet our debt service obligations and finance operations, and other risk factors described from time to time in Cox's filings with the Securities and Exchange Commission, including Cox's Annual Report on Form 10-K, as amended, for the year ended December 31, 2002. Cox assumes no responsibility to update any forward-looking statements as a result of new information, future events or otherwise.
CONTACT: Cox Communications, Inc., Atlanta Investor Relations Lacey Lewis, 404/269-7608 email@example.com or Media Relations Laura Oberhelman, 404/269-7562 firstname.lastname@example.org SOURCE: Cox Communications, Inc.