Cox Radio Posts Profit Despite Weak Ad Sales

Cox Radio Inc., the fourth-largest radio company in the United States, on Thursday reported a quarterly profit in line with analyst forecasts despite a downturn in advertising sales in the media industry.

Atlanta-based Cox, which owns and operates more than 80 radio stations in 18 U.S. markets, also said it expected pro forma revenue to increase up to 3% in the first quarter of 2001 and between 10% and 12% for the entire year.

The company estimated it would generate after-tax cash flow per share of between 14 and 16 cents in the first quarter and 24 to 26 cents for the second quarter of the year.

For the three months ended Dec. 31, Cox Radio earned $4.7 million, or 5 cents a share, including special items, compared with a profit of $8.7 million, or 10 cents a share, in the same period last year.

The profit included a $100,000 unrealized gain related to interest rate swap agreements and a $500,000 after-tax loss for adjustments on previous sales of assets.

Revenue increased 25.7% to $102.8 million.

Analysts had expected Cox Radio to earn 5 cents a share in the period, according to First Call/Thomson Financial, which tracks consensus data.

“I think they posted great numbers in a difficult environment,” said Alissa Graham, analyst with William Blair & Co., who has a long-term “buy” rating on Cox Radio shares.