Cox Reports Q3 Earnings

Oct 27, 2004  •  Post A Comment

Cox Communications, the cable company about to be taken private by its majority shareholder, on Wednesday reported that it swung to a third-quarter profit, since it added digital cable and high-speed data customers during the period.

The Atlanta-based company posted a profit of $42 million, or 7 cents a share, versus a loss of $215.1 million, or 35 cents a share, a year ago.

The most recent results reflected the impact of losses suffered as a result of a string of hurricanes in the Southeast several weeks ago, which damaged two facilities in Florida and one in Louisiana and reduced third-quarter profit by 4 cents a share. The company said it should be able to recover all but a $5 million insurance deductible related to the hurricanes, but declined to give a specific cost of the damage.

Also impacting the quarter’s results was a verdict against Cox in connection with its purchase of cable systems in Texas. Cox said it would appeal the verdict.

Revenue rose 11 percent to $1.6 billion, driven by the addition of nearly 73,000 digital cable customers and a record 184,500 high-speed data customers.

The results come as Cox prepares to be taken private in an $8 billion-plus deal by majority shareholder Cox Enterprises, which is buying the 38 percent in Cox Communications that it doesn’t already own. The deal, which was unanimously approved by Cox Communications’ board, is expected to close by year-end.