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 -

09 Aug, 2010, 16:01 ET from tw telecom inc.

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.



RELATED LINKS

http://www.twtelecom.com