2014

tw telecom Reports Second Quarter 2010 Results - Delivered strong Enterprise and Total Revenue growth -

- Completed launch of 2010 new product portfolio enhancements -

- Continued to deliver strong Levered Free Cash Flow and Margins -

LITTLETON, Colo., Aug. 9 /PRNewswire-FirstCall/ -- tw telecom inc. (Nasdaq: TWTC), a leading provider of managed voice, Internet and data networking solutions for business customers, today announced its second quarter 2010 financial results, including $316.8 million of revenue, $114.4 million in Modified EBITDA(1) ("M-EBITDA"), $15.2 million in levered free cash flow(3) and net income of $242.3 million, which included the impact of a non-cash income tax benefit of $227.3 million in the quarter.  

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"We delivered accelerated revenue growth this quarter, as we achieved strength across many aspects of our business," said Larissa Herda, tw telecom's Chairman, CEO and President.  "Our performance was balanced and comprehensive with strong margins and solid cash flow.  Operationally, we continued to distance ourselves from the competition by investing in unique products and evolving network capabilities, while achieving ongoing scale and efficiency in the business.  Collectively, these efforts, and our overall Ethernet and advanced services strategy, put us in a position to capture some of the most exciting demand drivers in the economy."

Highlights for the Quarter

  • Grew total revenue 5% year over year and 2% sequentially, reflecting the highest sequential growth in two years
  • Grew enterprise revenue 6% year over year and 2% sequentially, reflecting the highest sequential growth in two years
  • Grew data and Internet revenue 16% year over year and 4% sequentially
  • Grew M-EBITDA 5% year over year
  • Achieved a 36.1% M-EBITDA margin
  • Delivered $15.2 million of levered free cash flow, representing 5% of revenue
  • Recognized a $227.3 million non-cash income tax benefit
  • Ended the quarter with $486.9 million in cash, equivalents and short term investments

Business Trends

"We executed well both financially and operationally," said Mark Peters, tw telecom's Executive Vice President and Chief Financial Officer. "We achieved strong revenue and margins while launching new product portfolio enhancements to help fuel future growth.  Contributing to our revenue results was another quarter of very low churn, and the impact of growing customer installations.  Our 'bookings,(4)' or sales, for the first half of this year outpaced the same period last year by nearly 25%, demonstrating the momentum in the business and included some large customer wins.  We expect the majority of the revenue associated with these large deals late this year and into the first half of next year."

Operational Metrics

Revenue churn(5) was 1.0% for the current quarter, 0.9% for the prior quarter, and 1.3% for the same quarter last year.  As a component of revenue churn, revenue lost from customers fully disconnecting service remained low at 0.2% for both the current quarter and prior quarter and down from 0.4% the same quarter last year, reflecting a strong and stable customer base.  While the Company may experience quarterly fluctuations in revenue churn, it believes that its favorable low churn is indicative of its sticky customer base, customer experience strategy and strong product portfolio.

The Company had nearly 27,500 customers as of June 30, 2010.  Customer churn(5) was 1.1% for both the current and prior quarter and down from 1.4% for the same period last year.  

The Company ended the second quarter with approximately 27,500 route miles (including nearly 21,000 metro miles), 10,967 fiber connected on-net(6) buildings and 2,901 employees, including 528 sales associates.

Other Trends

The Company continues to expect business fluctuations to impact sequential trends in revenue, margins and cash flow.  This includes the timing as well as any seasonal nature of sales and installations, usage, disputes, repricing for contract renewals, and fluctuations in revenue churn, expenses and capital expenditures.  

Capital Expenditures

Capital expenditures were $85.0 million for the quarter compared to $80.9 million for the prior quarter and $69.2 million for the same period last year.  The sequential and year over year increase primarily reflects investing in ongoing success-based opportunities.  Additionally, investing in 2010 new product portfolio enhancements contributed to the increased investing year over year and has been substantially completed.    

Due to strong customer demand the Company raised its annual capital guidance and expects $300 to $325 million of capital investments for the year.  The Company expects both the majority of its annual capital investments as well as its expanded guidance of $25 million, to be tied to new sales opportunities.

Year over Year Results – Second Quarter 2010 compared to Second Quarter 2009

Revenue

Revenue for the quarter was $316.8 million compared to $301.1 million for the second quarter last year, representing a year over year increase of $15.8 million, or 5%.  Key changes in revenue included:

  • $14.0 million increase in revenue from enterprise customers, or 6% year over year, representing 32 consecutive quarters of enterprise growth
  • $1.5 million increase in revenue from carriers, primarily from sales to wireless providers, which outpaced churn

By product line, the percentage change in revenue year over year was as follows:

  • 16% increase for data and Internet services, primarily due to continued success with Ethernet and IP-based product sales
  • 1% increase in voice services, primarily reflecting local product sales and an increase in certain taxes and fees, partially offset by churn
  • 4% decrease for network services primarily reflecting growth in high capacity and collocation services, outpaced by churn

M-EBITDA and Margins

M-EBITDA grew to $114.4 million for the quarter, an increase of 5%, or $5.5 million from the same period last year.  The growth in M-EBITDA represents the contribution from revenue growth and network cost efficiencies, partially offset by an increase in employee expenses and field related costs, which included higher lease, maintenance and utility expenses.

Operating costs for the quarter increased year over year, primarily due to increased network access costs associated with higher revenue, increased field related costs, taxes and fees, partially offset by network cost efficiencies.  Operating costs as a percent of revenue were 42% for the current period compared to 41% for the same period last year.

Selling, general and administrative costs ("SG&A") increased year over year, primarily reflecting an increase in employee costs.   SG&A costs as a percent of revenue were 24% for the current quarter and 25% for the same period last year.  

Modified gross margin(7) was 58.5% for the quarter compared to 59.3% for the same period last year, a change of 80 basis points primarily reflecting higher field related costs.  M-EBITDA margin for the quarter was 36.1% as compared to 36.2% for the same period last year.  

The Company utilizes a fully burdened modified gross margin, including network costs, and personnel costs for customer care, provisioning, network maintenance, technical field and network operations, excluding non-cash stock-based compensation expense.  

Reversal of Tax Valuation Allowance

The Company had previously established a valuation allowance that reduced most of its deferred tax assets.  In the current quarter, the Company reversed the majority of that allowance due to the achievement of cumulative earnings, among other factors, pursuant to accounting guidance, which resulted in a $227.3 million non-cash income tax benefit that substantially increased net income and earnings per share.

Net Income

For the quarter, net income was $242.3 million compared to net income of $5.9 million for the same period last year.  The increase in net income reflected the impact of a $227.3 million non-cash income tax benefit as well as strong M-EBITDA growth and a reduction in depreciation.  

Sequential Results – Second Quarter 2010 compared to First Quarter 2010

Revenue

Revenue for the quarter was $316.8 million, as compared to $311.2 million for the first quarter of 2010, an increase of $5.6 million, or 2%, the highest sequential growth in eight quarters.  Key changes in revenue included:

  • $4.6 million increase in enterprise revenue, representing 2% sequential growth, the highest growth in eight quarters
  • $0.8 million increase in revenue from carrier customers, primarily from sales to wireless providers, which outpaced churn

By product line, the percentage change in revenue sequentially was as follows:

  • 4% increase for data and Internet services, primarily due to continued success with Ethernet and IP-based product sales
  • Voice services were relatively flat, primarily reflecting local product sales and an increase in certain taxes and fees, offset by churn
  • 1% increase in network services, primarily reflecting growth in high capacity and collocation services, which outpaced churn

M-EBITDA and Margins  

M-EBITDA was $114.4 million for the quarter, compared to $114.2 million for the prior quarter.  The growth in M-EBITDA represents contribution from revenue growth and network cost efficiencies partially offset by an increase in employee expenses and field related costs, which included higher maintenance and utility expenses.  

Operating costs increased primarily reflecting increased access costs associated with the growth in revenue, and higher employee costs, taxes and fees, and field related costs, offset by network cost efficiencies.  Operating costs were 42% of revenue for the current quarter and 41% for the prior quarter.  

SG&A costs increased primarily reflecting an increase in employee costs including the impact of higher sales commissions and annual merit increases, somewhat offset by lower payroll taxes.  SG&A was 24% of revenue for both the current and prior quarter.  

Modified gross margin was 58.5% for the quarter compared to 58.8% for the prior quarter, a change of 30 basis points.  M-EBITDA margin was 36.1% for the quarter, compared to 36.7% for the prior quarter, a change of 60 basis points.  Sequentially, margins were primarily impacted by increased field costs, higher sales commissions, and annual merit increases.

Net Income

For the quarter, the Company reported net income of $242.3 million compared to a net loss of $4.5 million for the prior quarter.  The sequential increase in net income reflected the impact of a $227.3 million non-cash income tax benefit, debt extinguishment costs in the prior quarter which did not recur, and lower depreciation.  

Summary  

"Our operations are in a terrific position to continue to grow revenue, as we focus on our product innovation, network capabilities and an exceptional customer experience," said Herda.

tw telecom plans to conduct a webcast conference call to discuss its earnings results on August 10, 2010 at 9:00 a.m. MDT (11:00 a.m. EDT).  To access the webcast and the financial and other information to be discussed in the webcast, visit www.twtelecom.com under "Investor Relations."

(1) The Company uses a modified definition of EBITDA to eliminate certain non-cash and non-operating income or charges to earnings to enhance the comparability of its financial performance from period to period.  Modified EBITDA (or "M-EBITDA") is defined as net income or loss before depreciation, amortization, accretion, impairment charges and other gains and losses, interest expense, debt extinguishment costs, interest income, income tax expense or benefit, cumulative effect of change in accounting principle, and non-cash stock-based compensation expense.

(2) The Company defines unlevered free cash flow as Modified EBITDA less capital expenditures. Unlevered free cash flow is reconciled to Net Cash provided by (used in) operating activities in the supplemental information posted on the Company's website.

(3) The Company defines levered free cash flow as Modified EBITDA less capital expenditures and net interest expense from operations (but excludes debt extinguishment costs, non-cash interest expense and deferred debt costs).  Levered free cash flow is reconciled to Net Cash provided by (used in) operating activities in the supplemental information posted on the Company's website.  

(4) Bookings reflect signed customer sales.  The timing of when these sales are installed and recognized as revenue varies based on the underlying contract.

(5) The Company defines revenue churn as the lost recurring monthly billing for the quarter from a customer's partial or complete disconnection of services (excluding repricing impacts and usage) compared to reported revenue for the quarter.  Customer churn is defined as the average monthly customer turnover for the quarter compared to the average monthly customer count for the quarter.

(6) Fiber connected buildings on-net represent locations to which the Company's fiber is directly connected with lit electronics.  This does not include buildings which are exclusively Local Serving Office locations or buildings with fiber but no lit electronics.

(7) The Company defines modified gross margin as total revenue less operating costs excluding non-cash stock-based compensation expense.  Modified gross margin is reconciled to gross margin in the financial tables.

Financial Measures

The Company provides financial measures using U.S. generally accepted accounting principles ("GAAP") as well as adjustments to GAAP measures to describe its business trends, including Modified EBITDA.  Management believes that its definition of Modified EBITDA (see above) is a standard measure of operating performance and liquidity that is commonly reported and widely used by analysts, investors, and other interested parties in the telecommunications industry because it eliminates many differences in financial, capitalization, and tax structures, as well as non-cash and non-operating income or charges to earnings.  Modified EBITDA is not intended to replace operating income (loss), net income (loss), cash flow, and other measures of financial performance and liquidity reported in accordance with GAAP.  Management uses Modified EBITDA internally to assess on-going operations and it is the basis for various financial covenants contained in the Company's debt agreements and for operating performance and liquidity.  Modified EBITDA is reconciled to Net Income (Loss), the most comparable GAAP measure for operating performance within the Consolidated Operations Highlights and in the supplemental information posted on the Company's website.  Modified EBITDA, as a measure of liquidity, is also reconciled to Net Cash provided by operating activities on the Company's website.

In addition, management uses unlevered and levered free cash flow, which measure the ability of M-EBITDA to cover capital expenditures.  The Company uses these cash flow definitions to eliminate certain non-cash costs.  Levered and unlevered free cash flow are reconciled to Net Cash provided by operating activities and also to Modified EBITDA in the supplemental information posted on the Company's website.  The Company also provides an adjustment to the measure gross margin by eliminating the impact of non-cash stock-based compensation expense.  Management uses modified gross margin internally to assess on-going operations.  Modified gross margin is reconciled to gross margin in the financial tables.

Forward Looking Statements

The statements in this press release and related conference call concerning the outlook for 2010 and beyond, including product plans, growth prospects, market opportunities, bookings, sales momentum, operational improvements, sales and installations timing, revenue growth, churn, business trends and fluctuations, seasonality, and expected capital expenditures are forward-looking statements that reflect management's views with respect to future events and financial performance.  These statements are based on management's current expectations and are subject to risks and uncertainties.  Important factors that could cause actual results to differ materially from those in the forward looking statements include the risks disclosed in the Company's SEC filings, especially the section entitled "Risk Factors" in its 2009 Annual Report on Form 10-K and in its quarterly report on Form 10-Q for the quarter ended June 30, 2010.  tw telecom undertakes no obligations to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About tw telecom  

tw telecom, headquartered in Littleton, Colo., provides managed network services, specializing in converged services, Ethernet and data networking, Internet access, local and long distance voice, VPN, VoIP and network security, to enterprise organizations and communications services companies throughout the U.S. including their global locations.  As a leading provider of integrated and converged network solutions, tw telecom delivers customers overall economic value, quality service, and improved business productivity.  For more information please visit www.twtelecom.com.  

tw telecom inc.




Consolidated Operations Highlights




(Dollars in thousands)





Unaudited (1)























Three Months Ended


Six Months Ended






June 30,



June 30





2010

2009

Growth %


2010

2009

Growth %












Revenue










Data and Internet services

$134,152

$115,829

16%


$263,273

$227,871

16%


Network services

90,000

93,297

-4%


179,548

187,163

-4%


Voice services

83,963

83,538

1%


168,035

166,615

1%



Service Revenue

308,115

292,664

5%


610,856

581,649

5%


Intercarrier compensation

8,734

8,395

4%


17,204

17,041

1%




Total Revenue

316,849

301,059

5%


628,060

598,690

5%












Expenses










Operating costs

132,319

123,219



261,174

246,950





Gross Margin

184,530

177,840



366,886

351,740



Selling, general and administrative costs

76,810

75,504



151,912

151,324



Depreciation, amortization, and accretion

72,031

74,406



145,418

147,597





Operating Income

35,689

27,930



69,556

52,819



Interest expense

(14,392)

(16,235)



(30,298)

(32,916)



Debt extinguishment costs

-

-



(17,070)

-



Non cash interest expense and deferred debt costs

(5,357)

(4,792)



(10,392)

(9,569)



Interest income

172

81



229

211





Income before income taxes

16,112

6,984



12,025

10,545



Income tax (benefit) expense (2)

(226,211)

1,072



(225,836)

1,753





Net Income

$242,323

$5,912



$237,861

$8,792
























SUPPLEMENTAL INFORMATION TO RECONCILE MODIFIED GROSS MARGIN AND MODIFIED EBITDA
















Gross Margin

$184,530

$177,840



$366,886

$351,740



Add back non-cash stock-based compensation expense

749

778



1,507

1,503





Modified Gross Margin

185,279

178,618

4%


368,393

353,243

4%













Selling, general and administrative costs

76,810

75,504



151,912

151,324



Add back non-cash stock-based compensation expense

5,980

5,809



12,199

11,446





Modified EBITDA

114,449

108,923

5%


228,680

213,365

7%













Non-cash stock-based compensation expense

6,729

6,587



13,706

12,949



Depreciation, amortization, and accretion

72,031

74,406



145,418

147,597



Net Interest expense

14,220

16,154



30,069

32,705



Debt extinguishment costs

-

-



17,070

-



Non cash interest expense and deferred debt costs

5,357

4,792



10,392

9,569



Income tax (benefit) expense

(226,211)

1,072



(225,836)

1,753





Net Income

$242,323

$5,912



$237,861

$8,792














Modified Gross Margin %

58.5%

59.3%



58.7%

59.0%














Modified EBITDA Margin %

36.1%

36.2%



36.4%

35.6%
























Free Cash Flow:









Modified EBITDA

$114,449

$108,923

5%


$228,680

$213,365

7%


Less: Capital Expenditures

84,988

69,187

23%


165,917

142,612

16%


Unlevered Free Cash Flow

29,461

39,736

-26%


62,763

70,753

-11%


Less: Net interest expense

14,220

16,154

-12%


30,069

32,705

-8%


Levered Free Cash Flow

$15,241

$23,582

-35%


$32,694

$38,048

-14%























(1) For complete financials and related footnotes, please refer to the Company's SEC filings.





(2) Includes a non-cash income tax benefit of $227.3 million in the three and six months ended June 30, 2010 to recognize the value of tax assets.



tw telecom inc. 

Consolidated Operations Highlights

(Dollars in thousands)

Unaudited (1)













Three Months Ended





June 30,

Mar 31,







2010

2010


Growth %









Revenue








Data and Internet services

$134,152

$129,121


4%


Network services

90,000

89,548


1%


Voice services

83,963

84,072


0%



Service Revenue

308,115

302,741


2%


Intercarrier compensation

8,734

8,470


3%




Total Revenue

316,849

311,211


2%









Expenses







Operating costs

132,319

128,855






Gross Margin

184,530

182,356




Selling, general and administrative costs

76,810

75,102




Depreciation, amortization, and accretion

72,031

73,387






Operating Income

35,689

33,867




Interest expense

(14,392)

(15,906)




Debt extinguishment costs

-

(17,070)




Non cash interest expense and deferred debt costs

(5,357)

(5,035)




Interest income

172

57






Income (Loss) before income taxes

16,112

(4,087)




Income tax (benefit) expense (2)

(226,211)

375






Net Income (Loss)

$242,323

($4,462)



















SUPPLEMENTAL INFORMATION TO RECONCILE MODIFIED GROSS MARGIN AND MODIFIED EBITDA











Gross Margin

$184,530

$182,356




Add back non-cash stock-based compensation expense

749

758






Modified Gross Margin

185,279

183,114


1%










Selling, general and administrative costs

76,810

75,102




Add back non-cash stock-based compensation expense

5,980

6,219






Modified EBITDA

114,449

114,231


0%










Non-cash stock-based compensation expense

6,729

6,977




Depreciation, amortization, and accretion

72,031

73,387




Net Interest expense

14,220

15,849




Debt extinguishment costs

-

17,070




Non cash interest expense and deferred debt costs

5,357

5,035




Income tax (benefit) expense

(226,211)

375






Net Income

$242,323

($4,462)












Modified Gross Margin %

58.5%

58.8%












Modified EBITDA Margin %

36.1%

36.7%



















Free Cash Flow







Modified EBITDA

$114,449

$114,231


0%


Less: Capital Expenditures

84,988

80,929


5%


Unlevered Free Cash Flow

29,461

33,302


-12%


Less: Net interest expense

14,220

15,849


-10%


Levered Free Cash Flow

$15,241

$17,453


-13%

















(1) For complete financials and related footnotes, please refer to the Company's SEC filings.

(2) Includes a non-cash income tax benefit of $227.3 million in the three months ended June 30, 2010 to recognize the value of tax assets.



tw telecom inc. 

Highlights of Results Per Share

Unaudited (1) (2)

























Three Months Ended







6/30/10


3/31/10


6/30/09










Weighted Average Shares Outstanding (thousands)
















Basic


149,698


149,296


147,970











Diluted (2)


171,884


149,296


149,557










Basic Income (Loss) per Common Share







Prior to impacts of debt extinguishment & recognition of the value of tax assets

$0.10


$0.08


$0.04


Debt Extinguishment costs

-


($0.11)


-


Recognition of the value of tax assets

$1.50


-


-



Total


$1.60


($0.03)


$0.04










Diluted Income (Loss) per Common Share

$1.43


($0.03)


$0.04

























As Of







6/30/10


3/31/10


6/30/09

Common shares (thousands)
















Actual Shares Outstanding

151,584


151,666


149,224










Unvested Restricted Stock Units






and Restricted Stock Awards (thousands)

3,459


3,496


2,912










Options (thousands)

















Options Outstanding

10,887


11,152


13,293











Options Exercisable

7,331


7,518


8,291











Options Exercisable and In-the-Money

2,605


3,658


1,808



















(1) For complete financials and related footnotes, please refer to the Company's SEC filings.

(2) Stock options, restricted stock units/awards and convertible debt subject to conversion, are excluded from the computation of diluted weighted average shares outstanding if inclusion would be anti-dilutive. See the Company's SEC filings for more details.





tw telecom inc. 

Condensed Consolidated Balance Sheet Highlights

(Dollars in thousands)

Unaudited (1)





























June 30,


March 31,


June 30,







2010


2010


2009












ASSETS


















Cash, equivalents, and short term investments

$486,922


$486,469


$391,801













Receivables 


88,250


85,394


86,013



Less: allowance 


(8,821)


(9,146)


(11,214)




Net receivables


79,429


76,248


74,799













Other current assets 


104,577


42,032


23,196













Property, plant and equipment


3,640,018


3,559,212


3,389,653



Less:  accumulated depreciation 

(2,315,477)


(2,252,570)


(2,084,625)




Net property, plant and equipment

1,324,541


1,306,642


1,305,028













Other Assets 



655,809


491,092


513,320
















Total


$2,651,278


$2,402,483


$2,308,144























LIABILITIES AND STOCKHOLDERS' EQUITY


















Current Liabilities










Accounts payable 


$54,556


$61,506


$41,997



Deferred revenue 


35,806


34,644


32,359



Accrued taxes, franchise and other fees

65,764


68,010


65,337



Accrued interest 


12,377


5,949


16,577



Accrued payroll and benefits 

36,657


37,150


33,072



Accrued carrier costs

35,834


31,917


34,321



Current portion of debt and lease obligations

7,290


7,147


8,114



Other current liabilities 

41,029


43,815


36,935




Total current liabilities 

289,313


290,138


268,712













Long-Term Debt and Capital Lease Obligations








2 3/8% convertible senior debentures, due 4/1/2026

373,744


373,744


373,750



Unamortized Discount

(55,961)


(60,432)


(73,289)




Net



317,783


313,312


300,461



Floating rate senior secured debt - Term Loan B, due 1/7/2013

579,000


580,500


585,000



9 1/4% senior unsecured notes, due 2/15/2014

-


-


400,257



8% senior unsecured notes, due 2018

427,034


426,937


-



Capital lease obligations


16,019


16,084


17,857




Less: current portion 

(7,290)


(7,147)


(8,114)




Total long-term debt and capital lease obligations

1,332,546


1,329,686


1,295,461













Long-Term Deferred Revenue 

15,884


16,398


16,908


Other Long-Term Liabilities


31,050


31,067


29,514













Stockholders' Equity 


982,485


735,194


697,549
















Total


$2,651,278


$2,402,483


$2,308,144























(1) For complete financials and related footnotes, please refer to the Company's SEC filings.



tw telecom inc.

Condensed Consolidated Statements of Cash Flows

(Dollars in thousands)

Unaudited (1)














Three Months Ended





June 30,


Mar 31,


June 30,





2010


2010


2009



















Cash flows from operating activities:







Net Income (loss)

$242,323


($4,462)


$5,912


Adjustments to reconcile net income (loss) to net cash provided by operating activities:








Depreciation, amortization, and accretion

72,031


73,387


74,406



Deferred income taxes

(226,297)


-


-



Stock-based compensation

6,729


6,977


6,587



Extinguishment costs and amortization of discount on debt and deferred debt costs

5,358


22,146


4,944


Changes in operating assets and liabilities:








Receivables, prepaid expense and other assets

(5,872)


3,116


(3,128)



Accounts payable, deferred revenue, and other liabilities

(1,394)


(3,903)


17,881













Net cash provided by operating activities

92,878


97,261


106,602










Cash flows from investing activities:







Capital expenditures

(84,988)


(80,929)


(68,560)


Purchase of investments

(43,390)


(90,025)


-


Proceeds from redemptions of investments

8,288


15,075


-


Proceeds from sale of assets and other investing activities

(2,539)


(2,325)


1,845




Net cash used in investing activities

(122,629)


(158,204)


(66,715)










Cash flows from financing activities:







Net proceeds (tax withholdings) from issuance of common stock upon exercise of








stock options and vesting of restricted stock awards and units

733


167


946


Purchases of treasury stock

(3,523)


-


-


Net proceeds from issuance of debt

(52)


417,477


-


Retirement of debt obligations

-


(413,683)


-


Payment of debt and capital lease obligations

(1,685)


(2,014)


(2,244)













Net cash (used in) provided by financing activities

(4,527)


1,947


(1,298)













Increase (decrease) in cash and cash equivalents

(34,278)


(58,996)


38,589




Cash and cash equivalents at the beginning of the period

386,911


445,907


353,212




Cash and cash equivalents at the end of the period

$352,633


$386,911


$391,801










Supplemental disclosures cash, equivalents and short term investments









Cash and cash equivalents at the end of the period

$352,633


$386,911


$391,801




Short term investments

134,289


99,558


-





Total of cash, equivalents and short term investments

$486,922


$486,469


$391,801










Supplemental disclosures of cash flow information:







Cash paid for interest

$8,773


$26,697


$9,890


Cash paid for debt extinguishment costs

-


$13,677


-


Cash paid for income taxes

$2,955


$22


$2,180


Addition of capital lease obligation

-


-


$627










Supplemental information to reconcile capital expenditures:









Capital expenditures per cash flow statement

$84,988


$80,929


$68,560




Addition of capital lease obligation

-


-


627




Total capital expenditures

$84,988


$80,929


$69,187



















(1) For complete financials and related footnotes, please refer to the Company's SEC filings.



tw telecom inc.

Selected Operating Statistics

Unaudited (1)


















Three Months Ended






2009



2010






Mar. 31

Jun. 30

Sept. 30

Dec. 31


Mar. 31

Jun. 30













Operating Metrics:

































Buildings











Fiber connected buildings, on-net

9,685

9,934

10,170

10,407


10,647

10,967














Headcount










Total Headcount

2,853

2,861

2,849

2,870


2,887

2,901



Sales Associates

486

494

503

522


523

528


























Customers











Total Customers

29,256

28,676

28,347

27,989


27,685

27,460



















(1) For complete financials and related footnotes, please refer to the Company's SEC filings.



SOURCE tw telecom inc.



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http://www.twtelecom.com

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