Financial highlights (in thousands, except per share data and percentages) are as follows:

                                              Three Months Ended                                                  March 31,                                            2009       2008                                            ----       ----    Net revenues                            $75,511    $97,802       (22.8%)    Station operating income (1)             14,981     36,158       (58.6%)    Station operating income margin (2)        19.8%      37.0%          --    Operating income                         $7,969    $25,144       (68.3%)    Net income                                3,967     12,809       (69.0%)    Net income per common share - diluted     $0.05      $0.14           --    Free cash flow (3)                        9,367     21,944       (57.3%)    (1) Station operating income is not a measure of performance calculated in       accordance with accounting principles generally accepted in the United       States (GAAP).  Please see the attached table for a reconciliation to       operating income, the most directly comparable GAAP financial measure.   (2) Station operating income margin is station operating income as a       percentage of net revenues.   (3) Free cash flow is not a measure of performance calculated in       accordance with GAAP.  Please see the attached table for a       reconciliation to net income, the most directly comparable GAAP       financial measure.     Operating Results - First Quarter 2009   

Net revenues for the first quarter of 2009 were $75.5 million, down 22.8% from the first quarter of 2008. Due to the current economic downturn, many of our advertisers have reduced spending on advertising. Local revenues decreased 21.1% and national revenues decreased 32.4%, each as compared to the first quarter of 2008. Other revenues, which include Internet and other non-traditional revenues, decreased 13.3% as compared to the first quarter of 2008. For the quarter, net revenues were down for each of our stations as compared to the prior year.

Cost of services is comprised of expenses incurred by our technical, news and programming departments. For the first quarter of 2009, cost of services increased $0.8 million, or 3.5%, over the first quarter of 2008. This increase was primarily the result of additional costs associated with programming talent in our Atlanta and Tampa markets.

Selling, general and administrative expenses are comprised of expenses incurred by our sales, promotion and general and administrative departments. These expenses decreased $3.9 million, or 9.8% as compared to the first quarter of 2008 primarily due to a decrease in sales commissions, associated with the corresponding decline in revenue, and reduced expenses associated with our Long-Term Incentive Plan (LTIP).

Corporate general and administrative expenses decreased $1.9 million, as compared to the first quarter of 2008, due to reduced expenses associated with our LTIP and decreased compensation expense.

Operating income for the first quarter of 2009 was $8.0 million, a $17.2 million decrease from the first quarter of 2008 primarily due to the economic downturn and advertising recession.

Interest expense during the first quarter of 2009 decreased $2.6 million, or 68.3%, when compared to the first quarter of 2008 due to a lower overall borrowing rate. The average interest rate on our credit facility was 1.4% during the first quarter of 2009 and 4.4% during the first quarter of 2008.

Income tax expense decreased approximately $5.6 million to $2.9 million in the first quarter of 2009 as compared to the first quarter of 2008. This decrease primarily related to the decrease in income over the same period. Our overall effective tax rate was 41.9% for the first quarter of 2009 and 39.9% for the first quarter of 2008.

Net income for the first quarter of 2009 was $4.0 million, a decrease of $8.8 million from the first quarter of 2008. This decrease was attributable to the various factors discussed above.

Other Matters

During the first quarter of 2009, we had one remaining share repurchase program through which Cox Radio, from time to time, may repurchase shares of its Class A common stock in the open market or through privately negotiated transactions. Repurchased shares are held in treasury, and we may commence, suspend or terminate repurchases without prior notice, depending on market conditions and various other factors.