tw telecom Reports Second Quarter 2012 Results

Grew revenue 7.7%, Net Income 35.0% and Modified EBITDA(1) 8.8% year over year

Delivered 36.8% Modified EBITDA margin(1) for the quarter

Launched Enhanced Management & Dynamic Capacity Intelligent Network capabilities

Aug 06, 2012, 16:00 ET from tw telecom inc.

LITTLETON, Colo., Aug. 6, 2012 /PRNewswire/ -- tw telecom inc. (NASDAQ: TWTC), a leading national provider of managed services, including Business Ethernet, converged and IP VPN solutions to enterprises across the U.S. and to their global locations, today announced its second quarter 2012 financial results, including $364.5 million of revenue, net income of $19.3 million, $134.0 million of Modified EBITDA ("M-EBITDA"), $114.2 million of net cash provided by operating activities and $37.7 million of levered free cash flow3

(Logo: http://photos.prnewswire.com/prnh/20080626/LATH527LOGO)

"Our performance this quarter reflects both consistency and innovation," said Larissa Herda, tw telecom's Chairman, CEO and President.  "We achieved solid comprehensive financial results, including our 31st consecutive quarter of revenue growth, as well as strong margins and cash flow.  We also delivered game changing new Intelligent Network services and further advanced new Ethernet capabilities.  We're focused on delivering advanced networking services for customers' growing complex needs, including enabling cloud applications, to continue our track record of strong revenue growth."

Highlights for the Second Quarter 2012

  • Grew total revenue 1.6% sequentially and 7.7% year over year
  • Grew enterprise revenue 2.1% sequentially and 10.9% year over year
  • Grew data and Internet revenue 3.2% sequentially and 15.4% year over year
  • Data & Internet now represents 50% of revenue, driven primarily by strategic Ethernet and VPN-based product revenue
  • Grew pre-tax income 41.1% and net income 35.0% year over year
  • Grew M-EBITDA 1.7% sequentially and 8.8% year over year
  • Delivered 36.8% M-EBITDA margin
  • Grew cash, equivalents and short term investments to $531.7 million
  • Delivered $114.2 million in net cash provided by operating activities and $37.7 million of levered free cash flow, representing 10.3% of revenue

Business Trends

"We achieved solid comprehensive financial results as our sales trends strengthened," said Mark Peters, tw telecom's Executive Vice President and Chief Financial Officer.  "Our bookings7, or sales, gained momentum during the first quarter, which continued into the second quarter as we steadily progressed to achieve our strongest sales quarter on record.  This sales momentum contributed to our sequential data and Internet revenue growth, which grew at a higher rate this quarter than last quarter, as we continued to take market share and further expand our existing customers' services."  

New Products

"We achieved significant progress on our new product capabilities," said John Blount, tw telecom's Chief Operating Officer, "including the launch today of our Dynamic Capacity service, which is the second phase of our Intelligent Network capabilities.  We also successfully rolled out the first phase of our Intelligent Network capabilities with the launch of our Enhanced Management services at the end of June.  Additionally, we continued to further advance our new Ethernet capabilities that will enable national coverage from a single connection point, which we expect to introduce in the fourth quarter.  Our new capabilities represent thoughtful and strategic innovation, including unique foundational design and scalability, that we believe will continue to distance us from the competition."

Operational Metrics

Revenue churn4 was 0.9% both for the current quarter and the same period last year, which decreased from 1.1% for the prior quarter, primarily reflecting churn from one large carrier customer that did not recur.  As this large disconnect occurred late in the prior quarter, the majority of the financial impact to revenue was realized in the current quarter, which negatively impacted network services. As a component of revenue churn, revenue lost from customers fully disconnecting service remained low at 0.2% for the current quarter, which is consistent with both the prior quarter and the same quarter last year, indicative of a loyal customer base, strong customer experience strategy and competitive product portfolio.

The Company had approximately 27,600 customers as of June 30, 2012.  Customer churn4 was 1.0% for the current quarter that is consistent with both the prior quarter and the same quarter last year.  The Company ended the second quarter with over 28,000 fiber route miles (of which approximately 21,000 were metro miles).

Capital Expenditures

Capital expenditures of $80.8 million for the quarter were up slightly compared to the prior quarter of $79.1 million and decreased from $90.9 million for the same period last year, with the majority of the investments in each period related to success-based initiatives. 

Year-to-date capital investments of $159.9 million decreased 6.0% for the same period last year and declined to 22.1% of revenue for the first 6 months of this year compared to 25.4% for the same period last year.  This reflected an increase in certain success-based investments such as building additions and collocation investments for ongoing customer demand, offset by technology and infrastructure investments in the prior year that did not recur, timing of projects and gains from capital efficiency initiatives.

The Company expects capital investments to grow in the last half of the year over the first six months, and anticipates investments for the full year may be at the lower end of a range of $345 to $355 million, given its capital efficiencies and timing of projects. The Company also expects the majority of these investments to be tied to new success-based opportunities.

Other

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 installations5, usage, rate changes, disputes, repricing for contract renewals and fluctuations in revenue churn, expenses, capital expenditures and taxes and fees. 

As part of taxes and fees, the Company expects a third quarter rate decrease that will negatively impact its revenue growth rate for voice services. 

Intercarrier compensation revenue represented 2% of total revenue for the second quarter.  Due to a November 2011 FCC order, the Company expects about half of this revenue will be eliminated over a six-year period ending July 2018, with approximately $2 million of this reduction occurring in the last half of 2012. 

Year over Year Results – Second Quarter 2012 compared to Second Quarter 2011

Revenue

Revenue for the quarter was $364.5 million compared to $338.4 million for the second quarter last year, representing a year over year increase of $26.1 million, or 7.7%.  Revenue grew primarily due to ongoing strong enterprise revenue growth.  Key changes in revenue included:

  • $28.2 million increase in revenue from enterprise customers, or 10.9% year over year, driven primarily by data and Internet services and an increase in certain taxes and fees
  • $2.4 million decrease in revenue from carriers, primarily due to churn and repricing for contract renewals, partially offset by Ethernet services provided to wireline and wireless carriers to serve their end users

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

  • 15.4% increase for data and Internet services, primarily driven by an increase in strategic Ethernet and VPN-based products and other services, partially offset by churn. Data and Internet revenue represents 50% of total revenue for the quarter compared to 47% a year ago
  • 8.8% increase in voice services, primarily reflecting sales of converged and other voice solutions as well as an increase in certain taxes and fees, partially offset by churn
  • 6.6% decrease in network services, primarily reflecting churn and repricing for contract renewals largely in transport services, which outpaced growth in high capacity and colocation services

Operating Costs

Operating costs for the quarter grew year over year, primarily as a result of revenue growth, and included increases in network access costs and certain taxes and fees.  Operating costs as a percentage of revenue were 42.0% for the quarter and 41.7% for the same period last year.  Modified gross margin6 as a percentage of revenue was 58.2% in the current quarter compared to 58.4% in 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, net of costs capitalized for labor and overhead on capital projects.

Selling, General and Administrative Costs ("SG&A")

SG&A costs increased year over year, primarily reflecting an increase in employee-related costs, property taxes and regulatory fees, partially offset by a decrease in bad debt expense.  SG&A costs as a percentage of revenue decreased to 23.2% for the quarter from 23.9% for the same period last year. 

Net Income

Net income grew 35.0% to $19.3 million for the quarter from $14.3 million for the same period last year.  The increase was primarily driven by M-EBITDA growth, partially offset by an increase in income tax expense.  Earnings per share grew to $0.13 for the quarter compared to $0.09 in the same period last year.

M-EBITDA and Margins 

M-EBITDA grew to $134.0 million for the quarter, an increase of 8.8%, from the same period last year.  M-EBITDA margin for the quarter was 36.8% as compared to 36.4% for the same period last year. 

Sequential Results – Second Quarter 2012 compared to First Quarter 2012

Revenue

Revenue for the quarter was $364.5 million, as compared to $358.9 million for the first quarter of 2012, an increase of $5.6 million, or 1.6%, representing the 31st consecutive quarter of sequential growth.   Revenue grew due to ongoing strong enterprise growth.  Key changes in revenue included:

  • $6.0 million increase in enterprise revenue, representing 2.1% sequential growth driven primarily by data and Internet services
  • $0.8 million decrease in revenue from carrier customers, primarily reflecting churn and repricing for contract renewals largely in network services, offset by growth in Ethernet services provided to wireline and wireless carriers to serve their end users

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

  • 3.2% increase for data and Internet services, primarily driven by an increase in strategic Ethernet and VPN-based product sales and other services, partially offset by churn
  • 1.5% increase in voice services, primarily reflecting an increase in sales of converged solutions and certain taxes and fees resulting from revenue growth, partially offset by churn
  • 2.1% decrease in network services, primarily reflecting the full quarter impact of one large carrier customer disconnecting two high capacity circuits toward the end of the prior quarter, as well as repricing for contract renewals largely in transport services

Operating Costs

Operating costs increased primarily as a result of revenue growth and included increased network access costs, seasonally higher maintenance and utility costs and annual merit increases.  Operating costs were 42.0% of revenue for the quarter and 41.6% for the prior quarter.  Modified gross margin for the quarter as a percentage of revenue was 58.2% compared to 58.6% in the prior quarter.

Selling, General and Administrative Costs

SG&A costs decreased reflecting a reduction in bad debt expense, lower payroll taxes and stock-based compensation expense, partially offset by annual merit increases and higher sales commissions and other employee-related costs.  SG&A was 23.2% of revenue for the quarter and 24.0% for the prior quarter.  

Net Income

Net income was flat from the prior quarter at $19.3 million, primarily reflecting M-EBITDA growth which was offset by an increase in depreciation expense due to a gain on disposal of assets in the prior quarter that did not recur.  Earnings per share was $0.13 for both the current and the prior quarter.

M-EBITDA and Margins 

M-EBITDA was $134.0 million for the quarter, an increase of 1.7% from the prior quarter.  M-EBITDA margin was 36.8% for the quarter compared to 36.7% for the prior quarter.

tw telecom plans to conduct a webcast conference call to discuss its earnings results on August 7, 2012 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) Modified EBITDA (or "M-EBITDA") is defined as net income or loss before depreciation, amortization, accretion, impairment charges and other income 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.  The Company defines Modified EBITDA margin as M-EBITDA divided by total revenue.

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

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

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

(5) Installations reflect services from signed customer sales that are installed and recognized as revenue from the date of installation

(6) The Company defines modified gross margin as total revenue less operating costs excluding non-cash stock-based compensation expense.  

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

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 2012 and beyond, including statements regarding product and platform plans, growth prospects, market opportunities, sales momentum, customer opportunities, network capabilities, sales and installations timing, demand, revenue growth, margins, the impact of regulatory changes, churn, business trends and fluctuations, taxes 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 2011 Annual Report on Form 10-K and in its quarterly report on Form 10-Q for the quarter ended June 30, 2012 to be filed shortly hereafter.  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, 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,

2012

2011

Growth %

2012

2011

Growth %

Revenue

Data and Internet services 

$182,480

$158,168

15.4%

$359,331

$310,355

15.8%

Voice services 

91,008

83,636

8.8%

180,629

166,660

8.4%

Network services

83,009

88,898

-6.6%

167,813

178,409

-5.9%

Service Revenue

356,497

330,702

7.8%

707,773

655,424

8.0%

Intercarrier compensation 

8,006

7,684

4.2%

15,655

15,504

1.0%

Total Revenue

364,503

338,386

7.7%

723,428

670,928

7.8%

Expenses

Operating costs 

152,986

141,251

302,179

280,980

Gross Margin

211,517

197,135

421,249

389,948

Selling, general and administrative costs 

84,580

80,784

170,670

159,599

Depreciation, amortization and accretion

70,469

70,081

138,863

139,817

Operating Income 

56,468

46,270

22.0%

111,716

90,532

23.4%

Interest expense 

(15,612)

(16,030)

(31,056)

(32,290)

Non-cash interest expense and deferred debt costs 

(6,248)

(5,815)

(12,385)

(11,527)

Interest income

93

174

197

317

Income before income taxes

34,701

24,599

41.1%

68,472

47,032

45.6%

Income tax expense

15,382

10,292

29,821

20,106

Net Income

$19,319

$14,307

35.0%

$38,651

$26,926

43.5%

SUPPLEMENTAL INFORMATION TO RECONCILE MODIFIED GROSS MARGIN AND MODIFIED EBITDA

Gross Margin

$211,517

$197,135

$421,249

$389,948

Add back non-cash stock-based compensation expense

455

584

955

1,172

Modified Gross Margin

211,972

197,719

7.2%

422,204

391,120

7.9%

Selling, general and administrative costs

84,580

80,784

170,670

159,599

Add back non-cash stock-based compensation expense

6,594

6,249

14,222

13,109

Modified EBITDA

133,986

123,184

8.8%

265,756

244,630

8.6%

Non-cash stock-based compensation expense

7,049

6,833

15,177

14,281

Depreciation, amortization and accretion

70,469

70,081

138,863

139,817

Net Interest expense 

15,519

15,856

30,859

31,973

Non-cash interest expense and deferred debt costs

6,248

5,815

12,385

11,527

Income tax expense

15,382

10,292

29,821

20,106

Net Income

$19,319

$14,307

$38,651

$26,926

Modified Gross Margin %

58.2%

58.4%

58.4%

58.3%

Modified EBITDA Margin %

36.8%

36.4%

36.7%

36.5%

Free Cash Flow:

Modified EBITDA

$133,986

$123,184

8.8%

$265,756

$244,630

8.6%

Less: Capital Expenditures

80,792

90,861

-11.1%

159,901

170,137

-6.0%

Unlevered Free Cash Flow

53,194

32,323

64.6%

105,855

74,493

42.1%

Less: Net interest expense 

15,519

15,856

-2.1%

30,859

31,973

-3.5%

Levered Free Cash Flow 

$37,675

$16,467

128.8%

$74,996

$42,520

76.4%

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

 

 

 

tw telecom inc.

Consolidated Operations Highlights

(Dollars in thousands)

Unaudited (1)

Three Months Ended

June 30,

Mar 31,

2012

2012

Growth %

Revenue

Data and Internet services

$182,480

$176,851

3.2%

Voice services 

91,008

89,621

1.5%

Network services

83,009

84,804

-2.1%

Service Revenue

356,497

351,276

1.5%

Intercarrier compensation 

8,006

7,649

4.7%

Total Revenue

364,503

358,925

1.6%

Expenses

Operating costs 

152,986

149,193

Gross Margin

211,517

209,732

Selling, general and administrative costs 

84,580

86,090

Depreciation, amortization and accretion

70,469

68,394

Operating Income 

56,468

55,248

2.2%

Interest expense

(15,612)

(15,444)

Non-cash interest expense and deferred debt costs 

(6,248)

(6,137)

Interest income

93

104

Income before income taxes

34,701

33,771

2.8%

Income tax expense

15,382

14,439

Net Income 

$19,319

$19,332

-0.1%

SUPPLEMENTAL INFORMATION TO RECONCILE MODIFIED GROSS MARGIN AND MODIFIED EBITDA

Gross Margin

$211,517

$209,732

Add back non-cash stock-based compensation expense

455

500

Modified Gross Margin

211,972

210,232

0.8%

Selling, general and administrative costs

84,580

86,090

Add back non-cash stock-based compensation expense

6,594

7,628

Modified EBITDA

133,986

131,770

1.7%

Non-cash stock-based compensation expense

7,049

8,128

Depreciation, amortization and accretion

70,469

68,394

Net Interest expense

15,519

15,340

Non-cash interest expense and deferred debt costs 

6,248

6,137

Income tax expense

15,382

14,439

Net Income

$19,319

$19,332

Modified Gross Margin %

58.2%

58.6%

Modified EBITDA Margin %

36.8%

36.7%

Free Cash Flow

Modified EBITDA

$133,986

$131,770

1.7%

Less: Capital Expenditures

80,792

79,109

2.1%

Unlevered Free Cash Flow

53,194

52,661

1.0%

Less: Net interest expense

15,519

15,340

1.2%

Levered Free Cash Flow

$37,675

$37,321

0.9%

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

 

 

 

tw telecom inc.

Highlights of Results Per Share

Unaudited (1) (2) 

Three Months Ended

Jun. 30

Mar. 31

Jun. 30

2012

2012

2011

Weighted Average Shares Outstanding (thousands)

Basic 

147,497

146,967

147,939

Diluted (2)

149,532

149,090

150,395

Basic & Diluted Income per Common Share

$0.13

$0.13

$0.09

As of

Jun. 30

Mar. 31

Jun. 30

2012

2012

2011

Common shares (thousands)

Actual Shares Outstanding

150,966

150,374

150,930

Unvested Restricted Stock Units

and Restricted Stock Awards (thousands)

4,573

4,596

4,308

Options (thousands)

Options Outstanding 

5,375

5,977

7,626

Options Exercisable 

4,674

5,268

5,716

Options Exercisable and In-the-Money

4,674

4,564

4,365

(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)

Jun. 30

Mar. 31

Jun. 30

2012

2012

2011

ASSETS

Cash, equivalents, and short term investments

$531,699

$486,667

$509,261

Receivables

108,429

100,070

94,175

Less: allowance

(7,521)

(8,649)

(7,902)

Net receivables

100,908

91,421

86,273

Prepaid expenses and other current assets

19,929

18,334

19,432

Deferred income taxes

65,008

65,008

40,428

Total other current assets

84,937

83,342

59,860

Property, plant and equipment

4,116,329

4,080,835

3,877,286

Less:  accumulated depreciation 

(2,662,794)

(2,641,851)

(2,481,951)

Net property, plant and equipment 

1,453,535

1,438,984

1,395,335

Deferred income taxes

136,988

148,432

205,165

Goodwill

412,694

412,694

412,694

Intangible assets, net of accumulated amortization

14,928

16,335

21,093

Other assets, net of accumulated amortization

22,862

23,875

16,127

Total other non-current assets

587,472

601,336

655,079

Total

$2,758,551

$2,701,750

$2,705,808

LIABILITIES AND STOCKHOLDERS' EQUITY 

Current Liabilities

Accounts payable

$57,433

$56,142

$72,377

Deferred revenue

43,856

42,923

41,311

Accrued taxes, franchise and other fees

65,274

65,840

68,828

Accrued interest 

13,914

7,488

13,913

Accrued payroll and benefits

40,730

29,969

38,818

Accrued carrier costs

24,022

25,154

26,751

Current portion debt & lease obligations 

465,398

108,482

7,140

Other current liabilities

29,110

31,132

39,469

Total current liabilities

739,737

367,130

308,607

Long-Term Debt and Capital Lease Obligations 

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

373,744

373,744

373,744

Unamortized Discount 

(16,577)

(21,872)

(37,102)

Net

357,167

351,872

336,642

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

101,518

101,787

102,593

Floating rate senior secured debt - Term Loan B, due 12/30/2016

465,482

466,713

470,407

8% senior unsecured notes, due 3/1/2018, net of unamortized discount

427,808

427,711

427,420

Capital lease obligations

17,837

18,178

15,268

Less: current portion

(465,398)

(108,482)

(7,140)

Total long-term debt and capital lease obligations

904,414

1,257,779

1,345,190

Long-Term Deferred Revenue

24,629

22,041

18,407

Other Long-Term Liabilities 

36,046

35,784

32,568

Stockholders' Equity 

1,053,725

1,019,016

1,001,036

Total

$2,758,551

$2,701,750

$2,705,808

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

(2) Holders have the option to require the Company to purchase all or part of the debentures on April 1, 2013, April 1, 2016 or April 1, 2021; or at any time prior to April 1, 2026 to convert the debentures into equity. The Company has the right to redeem the debentures in whole or in part at any time on or after April 6, 2013.

 

 

 

tw telecom inc.

Condensed Consolidated Statements of Cash Flows

(Dollars in thousands)

Unaudited (1)

Three Months Ended

Jun. 30

Mar. 31

Jun. 30

2012

2012

2011

Cash flows from operating activities:

Net Income 

$19,319

$19,332

$14,307

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization and accretion

70,469

68,394

70,081

Deferred income taxes

14,947

14,030

9,871

Stock-based compensation expense

7,049

8,128

6,833

Amortization of discount on debt and deferred debt costs and other

6,246

6,121

5,792

Changes in operating assets and liabilities:

Accounts receivable, net

(9,487)

4,761

(4,454)

Prepaid expenses and other current and noncurrent assets

(752)

(173)

744

Accounts payable

(6,367)

4,020

(1,303)

Accrued interest

6,418

(6,466)

6,510

Accrued payroll and benefits

10,724

(14,334)

1,716

Deferred revenue, current and noncurrent

3,521

415

6,380

Other current and noncurrent liabilities

(7,849)

(9,867)

331

Net cash provided by operating activities

114,238

94,361

116,808

Cash flows from investing activities:

Capital expenditures

(80,792)

(76,783)

(90,327)

Purchase of investments

(79,711)

(40,102)

(55,004)

Proceeds from sale of investments

69,579

36,474

41,877

Other investing activities, net

5,406

301

1,581

Net cash used in investing activities

(85,518)

(80,110)

(101,873)

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

8,393

(2,565)

10,246

Purchases of treasury stock

-

(11,519)

(6,529)

Excess tax benefits from stock-based compensation

268

448

-

Payment of debt and capital lease obligations

(1,834)

(1,878)

(1,636)

Net cash provided by (used in) financing activities

6,827

(15,514)

2,081

Increase (decrease) in cash and cash equivalents

35,547

(1,263)

17,016

Cash and cash equivalents at the beginning of the period

352,131

353,394

362,215

Cash and cash equivalents at the end of the period

$387,678

$352,131

$379,231

Supplemental disclosures cash, equivalents and short term investments

Cash and cash equivalents at the end of the period

$387,678

$352,131

$379,231

Short term investments

144,021

134,536

130,030

Total of cash, equivalents and short term investments

$531,699

$486,667

$509,261

Supplemental disclosures of cash flow information:

Cash paid for interest

$9,489

$22,361

$10,172

Cash paid for income taxes, net of refunds

$5,082

($24)

$2,469

Addition of capital lease obligation

-

$2,326

$534

Supplemental information to reconcile capital expenditures:

Capital expenditures per cash flow statement

$80,792

$76,783

$90,327

Addition of capital lease obligation

-

2,326

534

Total capital expenditures

$80,792

$79,109

$90,861

(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

2011

2012

Mar. 31

Jun. 30

Sept. 30

Dec. 31

Mar. 31

Jun. 30

Operating Metrics:

Buildings  (2)

13,742

14,311

14,872

15,438

15,905

16,367

Headcount 

Total Headcount

2,985

3,071

3,065

3,051

3,059

3,089

Sales Associates 

564

553

564

555

551

546

Customers 

Total Customers 

27,234

27,322

27,376

27,509

27,495

27,569

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

(2) Reflects on-net buildings and ILEC Local Serving Offices (LSOs) directly served by the Company's fiber network.

 

SOURCE tw telecom inc.



RELATED LINKS

http://www.twtelecom.com