Time Warner Telecom Reports Solid First Quarter 2008 Results
Posted on May 13, 2008
Filed Under Tech Biz
LITTLETON, Colo., May 12 /PRNewswire-FirstCall/ — Time Warner Telecom
Inc. (Nasdaq: TWTC), a leading provider of managed voice and data
networking solutions for business customers, today announced its first
quarter 2008 financial results, including $282.6 million of revenue, $93.4
million in Modified EBITDA(1) (”M-EBITDA”) and a net loss of $.9 million.
“This quarter was one of solid revenue growth and accelerated levered
free cash flow,” said Larissa Herda, Time Warner Telecom’s Chairman, CEO
and President. “The strength of our business is reflected in the fact that
we exceeded our sequential trend for first quarter organic revenue growth
as compared to the prior two years. Enterprise customers continue to
require our network services as they drive to achieve operating
efficiencies, maximize their IT budgets, address disaster recovery and
business continuity requirements and webify their businesses. We see
bandwidth demand continuing to be strong at a time when we are well
positioned as a premier fiber based service provider in a shrinking
marketplace of competitors with our capabilities, providing us a great
opportunity to take market share.”
Highlights for the Quarter
For the quarter ending March 31, 2008, the Company –
— Grew total revenue 8% year over year and 1% sequentially
— Grew enterprise revenue 16% year over year and 2% sequentially
— Grew enterprise revenue to 71% of total revenue from 67% in the same
period last year
— Grew data and Internet revenue 33% year over year and 6% sequentially
— Grew M-EBITDA 22% year over year
— Achieved a 33.0% M-EBITDA margin, representing a 380 basis point
improvement year over year
— Delivered $15.7 million of levered free cash flow(4), or a 6% levered
free cash flow margin, which included $2.3 million for integration and
branding expenditures. Excluding these items, the Company generated
$18.0 million levered free cash flow
Year over Year Results - First Quarter 2008 compared to First Quarter 2007
Revenue
Revenue for the quarter was $282.6 million representing a year over
year increase of $21.2 million, or 8%. Key changes in revenue included:
— $27.5 million increase in revenue from enterprise customers
— $4.6 million decrease in revenue from carriers, due to disconnects,
including $2.4 million from one wireless customer, and repricing of
renewed customer contracts, which outpaced new sales growth
— $1.7 million decrease in intercarrier compensation related to
discontinuance of certain non-supported acquired products, as well as
regulatory and contractual rate decreases
By product line, the percentage change in revenue year over year was as
follows:
— 33% increase for data and Internet services(5), which included growth
due to success with Ethernet and IP-based product sales. Data and
Internet services represented 33% of quarterly revenue compared to 27%
last year
— 4% increase for voice services(6), which included strong growth due to
bundled and other voice product sales. Voice services represented 29%
of quarterly revenue compared to 31% last year
— 3% decrease for network services(7), which included disconnects and
repricing of renewed customer contracts primarily from carrier
customers partially offset by new customer sales. Network services
represented 34% of quarterly revenue versus 38% a year ago
— 15% decrease in intercarrier compensation related to rate and product
changes. Intercarrier compensation represented 4% of revenue for both
the current quarter and the same period last year
M-EBITDA and Margins
M-EBITDA grew to $93.4 million from $76.3 million for the quarter, a
22% increase, or $17.1 million over the same period last year. The increase
in M-EBITDA primarily reflects solid revenue growth and integration cost
synergies. Included in M-EBITDA are integration and branding expenses.
Effective in 2008, the Company continues to separately track integration
related capital expenditures but no longer is tracking any remaining
operating-related integration expenses. Branding expenses totaled $.4
million for the current quarter and integration and branding expenses
totaled $2.0 million for the same period last year.
Operating costs increased primarily reflecting higher employee costs,
additional costs to launch new product capabilities in 14 acquired markets,
and the impact of increased network access costs associated with additional
sales, partially offset by integration cost synergies. Operating costs as a
percent of revenue declined to 43% for the current period compared to 45%
for the same period last year, reflecting synergies and scaling of the
business.
Selling, general and administrative costs (”SG&A”) increased primarily
reflecting increased employee costs, including incentive-based compensation
for sales employees due to higher sales, and non cash stock based
compensation. Bad debt expense was $.9 million for the current quarter and
the same period last year, representing less than 1% of quarterly revenue
for both periods. SG&A costs as a percent of revenue declined to 26% for
the current period as compared to 28% for the same period last year
reflecting synergies and scaling of the business.
Modified gross margin(8) was 57.6% for the current quarter compared to
55.4%, a 220 basis point improvement from the same period last year.
M-EBITDA margin for the quarter was 33.0% as compared to 29.2%, a 380 basis
point improvement from the same quarter last year. The improvement in
margins between periods primarily reflects synergies and scaling of the
business.
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 Loss
The Company’s net loss was $.9 million, a loss of $.01 per share for
the quarter compared to a net loss of $13.8 million, a loss of $.10 per
share for the same period last year. The 93% improvement in the net loss
primarily reflected strong M-EBITDA growth, partially offset by an increase
in depreciation expense related to new capital assets placed in service,
which was net of the impact of assets that became fully depreciated in the
current quarter.
Sequential Results - First Quarter 2008 compared to Fourth Quarter 2007
Revenue
Revenue for the quarter was $282.6 million, as compared to $279.5
million for the fourth quarter of 2007, an increase of $3.1 million, or 1%.
Key changes in revenue included:
— $3.6 million increase in revenue from enterprise customers, reflecting
strong seasonal growth offset by $1.5 million seasonal decline in
usage-based revenue, and $.9 million net decrease in revenue from
acquired customers due to discontinued products
— $.3 million decrease in revenue from carrier customers, including
$.5 million of disconnects from one wireless customer
— $.2 million decrease in intercarrier compensation related primarily to
regulatory rate decreases and a seasonal decline in usage partially
offset by fluctuations in disputes
By product line, the percentage change in revenue sequentially was as
follows:
— 6% increase for data and Internet services, due to continued success
with Ethernet and IP based product sales
— 2% decrease for voice services, due to a seasonal decline in usage and
discontinuation of acquired products, partially offset by bundled and
other voice product sales
— 1% decrease in network services primarily due to customer disconnects
and repricing of contract renewals primarily for carrier customers,
partially offset by ongoing customer sales
— 2% decrease in intercarrier compensation for rate changes and other
fluctuations
M-EBITDA and Margins
M-EBITDA was $93.4 million for the quarter, as compared to $93.3
million for the prior quarter. The Company’s current quarter was impacted
by seasonal trends which included a sequential cost increase due to
resetting of payroll taxes and merit raises, and lower seasonal revenue
growth associated with fewer selling days in the fourth quarter. The
sequential impact in the current quarter for payroll taxes and merit raises
was $3.4 million. Included in M-EBITDA are integration and branding
expenses. Effective in 2008, the Company continues to separately track
integration related capital expenditures but no longer is tracking any
remaining operating-related integration expenses. Branding expenses totaled
$.4 million for the current quarter and integration and branding expenses
totaled $1.4 million for the prior quarter.
Operating costs as a percent of revenue were approximately 43% for both
quarters. Operating costs increased for the quarter primarily reflecting an
increase for payroll taxes and merit raises, partially offset by
integration cost synergies. SG&A costs were 26% of revenue for both
quarters. SG&A costs increased for the quarter primarily reflecting an
increase in payroll taxes and merit raises, partially offset by a decrease
in bad debt expense.
Modified gross margin was 57.6% compared to 57.7% for the prior
quarter. M-EBITDA margin was 33.0% for the quarter, as compared to 33.4% in
the prior quarter. The change in M-EBITDA and margins primarily reflects
revenue growth and integration cost synergies offset by the seasonal effect
of increased costs for payroll taxes and merit raises.
Net Loss
The Company’s net loss was $.9 million, a loss of $.01 per share for
the quarter compared to a net loss of $5.3 million, or a loss of $.04 per
share for the prior quarter. The 82% improvement in net loss primarily
reflected strong M-EBITDA and a decrease in depreciation expense related to
assets which became fully depreciated in the current quarter.
M-EBITDA Margin Outlook
“In concert with our long-term perspective, we continue to invest in
the business, and drive new sales opportunities, while balancing revenue
growth, margins and cash flow,” said Mark Peters, Time Warner Telecom’s
Executive Vice President and Chief Financial Officer. “We will continue to
use this balanced approach as we remain focused on achieving mid-30%
M-EBITDA margins during the summer of 2008. Our results were strong for the
quarter and trends continue to be stable, however, we will continue to
monitor our business for any signs of pressure related to the macroeconomic
environment.”
Monthly revenue churn was 1.1% for the current quarter as compared to
1.2% for the same quarter last year, and 1.0% for the fourth quarter of
2007. The Company continues to expect normal business fluctuations to
impact sequential trends in revenue, margins and cash flow. This includes
the timing of sales and installations, seasonality, disputes, repricing of
contract renewals and ongoing revenue churn, which includes the impact from
carrier customers related to their consolidation activities and network
grooming.
Customer churn was 1.4% for both the current quarter and the same
period last year and was 1.0% for the prior quarter. The Company
experienced customer growth offset by churn primarily in the acquired
customer base(2), relating to a planned program to migrate small acquired
customers to its more advanced product suite. The Company expects ongoing
customer churn throughout 2008 from very small, lower margin customers that
fall below its service profile.
Time Warner Telecom will rebrand itself as tw telecom on July 1,
2008(9). The Company expects to spend $6 to $7 million in 2008 for branding
related costs, which includes up to $2 million in capital expenditures
associated with the name change.
Capital Expenditures
Excluding integration investments, capital expenditures were $57.7
million for the current quarter, compared to $49.2 million for the same
period last year, and $61.8 million for the prior quarter. The increase in
expenditures year over year was 17% reflecting strong customer driven
success-based capital investments including expanded network capacity.
Integration capital expenditures were $1.9 million for the quarter as
compared to $5.9 million for the same period last year, and $4.8 million
for the prior quarter.
For 2008, the Company expects total capital expenditures of $250 to
$274 million, consisting of $10 to $14 million for integration and
branding, and $240 to $260 million for its general operations which will
primarily be used to fund growth opportunities.
Summary
“With a large national footprint of metro fiber networks, innovative
product capabilities, growing bandwidth demand and a marketplace with fewer
competitors with our capabilities than ever before, Time Warner Telecom is
a powerful force in serving business customers,” said Herda.
Time Warner Telecom Inc. plans to conduct a webcast conference call to
discuss its earnings results on May 13 at 9:00 a.m. MDT (11:00 a.m. EDT).
To access the webcast and the financial and statistical information to be
discussed in the webcast, visit http://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) Acquired operations and acquired customer base reflect the acquisition
of Xspedius Communications, LLC on October 31, 2006.
(3) 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.
(4) The Company defines levered free cash flow as Modified EBITDA less
capital expenditures and net interest expense from operations (but
excludes debt extinguishment 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. See the
Supplemental Earnings information at http://www.twtelecom.com for more
details on Levered Free Cash Flow margin and Levered Free Cash Flow
margin excluding integration and branding costs.
(5) Data and Internet services include services that enable customers to
interconnect their internal computer networks and to access external
networks, including Internet at high speeds using Ethernet protocol.
Services include metro and wide area Ethernet, virtual private network
solutions and Internet access.
(6) Voice services contain traditional and next generation voice
capabilities, including voice services from stand alone and bundled
products, long distance, 800 services, and VoIP.
(7) Network services include transmission speeds up to OC 192 to carrier
and enterprise customers. These services transmit voice, data, image,
as well as enable transmission for storage, using state-of-the-art
fiber optics.
(8) 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.
(9) The Company changed its corporate name to tw telecom inc. in March
2008, and is presently using its former name, Time Warner Telecom,
Inc., as a trade name until July 1, 2008 in concert with its brand
launch.
Financial Measures
The Company provides financial measures using 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. Modified EBITDA is reconciled
to Net Loss, the most comparable GAAP measure, within the Consolidated
Operations Highlights and in the supplemental information posted 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 (used in) operating activities 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 related to the adoption of SFAS 123R. Management uses
modified gross margin internally to assess on-going operations. Modified
gross margin is reconciled to gross margin in the Consolidated Operations
Highlights.
Forward Looking Statements
The statements in this press release concerning the outlook for 2008
and beyond, including expansion plans, growth prospects, expected margins,
sales activity, timing of sales and installations, seasonality, disputes,
repricing of contract renewals and ongoing revenue churn, expected cost
synergies, integration and branding costs, integration activities and
results 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 summarized in the Company’s
filings with the SEC, especially the section entitled “Risk Factors” in its
2007 Annual Report on Form 10-K. Time Warner 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 Time Warner Telecom
Time Warner Telecom Inc., headquartered in Littleton, Colo., provides
managed network services, specializing in Ethernet and transport data
networking, Internet access, local and long distance voice, VoIP and
security, to enterprise organizations and communications services companies
throughout the U.S. As a leading provider of integrated and converged
network solutions, Time Warner Telecom delivers customers overall economic
value, quality service, and improved business productivity. Time Warner
Telecom will change its name to tw telecom inc. on July 1, 2008. Please
visit http://www.twtelecom.com for more information.
Time Warner Telecom Inc.
Consolidated Operations Highlights
(Dollars in thousands)
Unaudited (1)
Three Months Ended
March 31,
2008 2007 Growth%
Revenue
Network services $96,806 $99,970 -3%
Data and Internet services 92,790 69,881 33%
Voice services 83,073 79,930 4%
Service Revenue 272,669 249,781 9%
Intercarrier compensation 9,915 11,611 -15%
Total Revenue $282,584 $261,392 8%
Expenses
Operating costs 120,821 117,380 3%
Gross Margin 161,763 144,012 12%
Selling, general and
administrative costs 74,480 72,473 3%
Depreciation, amortization, and
accretion 69,859 66,140 6%
Operating Income 17,424 5,399 223%
Interest expense (20,679) (23,462) -12%
Interest income 2,686 4,539 -41%
Loss before income taxes (569) (13,524) -96%
Income tax expense 375 285 32%
Net Loss ($944) ($13,809) -93%
SUPPLEMENTAL INFORMATION TO RECONCILE MODIFIED GROSS
MARGIN AND MODIFIED EBITDA
Gross Margin $161,763 $144,012
Add back non-cash stock-based
compensation expense 925 852
Modified Gross Margin 162,688 144,864 12%
Selling, general and
administrative costs 74,480 72,473
Add back non-cash stock-based
compensation expense 5,160 3,943
Modified EBITDA 93,368 76,334 22%
Non-cash stock-based compensation
expense 6,085 4,795
Depreciation, amortization, and
accretion 69,859 66,140
Net Interest expense 17,993 18,923
Income tax expense 375 285
Net Loss ($944) ($13,809)
Modified Gross Margin % 57.6% 55.4%
Modified EBITDA Margin % 33.0% 29.2%
Free Cash Flow:
Modified EBITDA $93,368 $76,334 22%
Less: Capital Expenditures 59,637 55,104 8%
Unlevered Free Cash Flow 33,731 21,230 59%
Less: Net interest expense 17,993 18,923 -5%
Levered Free Cash Flow $15,738 $2,307 582%
Expenses included in M-EBITDA
reported above (2)
Integration expenses (3) $0 $1,779
Branding expenses 381 212
Total $381 $1,991
Expenditures included in Capital
Expenditures above (2)
Integration costs $1,872 $5,866
(1) For complete financials and related footnotes, please refer to the
Company’s SEC filings.
(2) Represents costs to integrate the acquired operations and execute a
branding plan. All amounts are included in the reported results
above.
(3) Effective in 2008 the Company is no longer separately tracking
operating-related integration expenses.
Time Warner Telecom Inc.
Consolidated Operations Highlights
(Dollars in thousands)
Unaudited (1)
Three Months Ended
March 31, December 31,
2008 2007 Growth%
Revenue
Network services $96,806 $97,340 -1%
Data and Internet services 92,790 87,489 6%
Voice services 83,073 84,546 -2%
Service Revenue 272,669 269,375 1%
Intercarrier compensation 9,915 10,101 -2%
Total Revenue $282,584 $279,476 1%
Expenses
Operating costs 120,821 119,179 1%
Gross Margin 161,763 160,297 1%
Selling, general and
administrative costs 74,480 72,846 2%
Depreciation, amortization, and
accretion 69,859 73,129 -4%
Operating Income 17,424 14,322 22%
Interest expense (20,679) (22,491) -8%
Interest income 2,686 3,875 -31%
Other income/(loss) - (607) -100%
Loss before income taxes (569) (4,901) -88%
Income tax expense 375 391 -4%
Net Loss ($944) ($5,292) -82%
SUPPLEMENTAL INFORMATION TO RECONCILE MODIFIED GROSS
MARGIN AND MODIFIED EBITDA
Gross Margin $161,763 $160,297
Add back non-cash stock-based
compensation expense 925 948
Modified Gross Margin 162,688 161,245 1%
Selling, general and
administrative costs 74,480 72,846
Add back non-cash stock-based
compensation expense 5,160 4,862
Modified EBITDA 93,368 93,261 0%
Non-cash stock-based compensation
expense 6,085 5,810
Depreciation, amortization, and
accretion 69,859 73,129
Net Interest expense 17,993 18,616
Other income/(loss) - (607)
Income tax expense 375 391
Net Loss ($944) ($5,292)
Modified Gross Margin % 57.6% 57.7%
Modified EBITDA Margin % 33.0% 33.4%
Free Cash Flow
Modified EBITDA $93,368 $93,261 0%
Less: Capital Expenditures 59,637 66,587 -10%
Unlevered Free Cash Flow 33,731 26,674 26%
Less: Net interest expense 17,993 18,616 -3%
Levered Free Cash Flow $15,738 $8,058 95%
Expenses included in M-EBITDA
reported above (2)
Integration expenses (3) $0 $1,273
Branding expenses 381 81
Total $381 $1,354
Expenditures included in Capital
Expenditures above (2)
Integration costs $1,872 $4,783
(1) For complete financials and related footnotes, please refer to the
Company’s SEC filings.
(2) Represents costs to integrate the acquired operations and execute a
branding plan. All amounts are included in the reported results
above.
(3) Effective in 2008 the Company is no longer separately tracking
operating-related integration expenses.
Time Warner Telecom Inc.
Highlights of Results Per Share
Unaudited (1) (2)
Three Months Ended
3/31/08 12/31/07 3/31/07
Weighted Average Shares Outstanding
(thousands)
Basic and Diluted 146,810 146,120 143,768
Basic and Diluted Income (Loss) per
Common Share ($0.01) ($0.04) ($0.10)
As of
3/31/08 12/31/07 3/31/07
Common shares (thousands)
Actual Shares Outstanding 146,978 146,542 144,554
Options (thousands)
Options Outstanding 12,828 11,508 12,559
Options Exercisable 7,403 7,195 7,642
Options Exercisable and In-the-Money 2,691 3,034 3,262
(1) For complete financials and related footnotes, please refer to the
Company’s SEC filings.
(2) Stock options, restricted stock units and convertible debt subject to
conversion were excluded from the computation of weighted average
shares outstanding because their inclusion would be anti-dilutive.
Time Warner Telecom Inc.
Condensed Consolidated Balance Sheet Highlights
(Dollars in thousands)
Unaudited (1)
March 31, December 31,
2008 2007
ASSETS
Cash and equivalents $318,218 $321,531
Receivables 87,479 87,994
Less: allowance (11,064) (12,018)
Net receivables 76,415 75,976
Other current assets 20,033 22,164
Property, plant and equipment 3,083,907 3,022,752
Less: accumulated depreciation (1,792,026) (1,727,852)
Net property, plant and
equipment 1,291,881 1,294,900
Other Assets 547,077 550,147
Total $2,253,624 $2,264,718
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable $45,448 $46,972
Deferred revenue 27,221 26,015
Accrued taxes, franchise and
other fees 69,857 73,130
Accrued interest 9,624 16,707
Accrued payroll and benefits 34,919 36,560
Accrued carrier costs 45,551 50,898
Current portion of debt and
lease obligations 7,586 7,337
Other current liabilities 29,912 30,647
Total current liabilities 270,118 288,266
Long-Term Debt and Capital Lease Obligations
Floating rate senior secured
debt - Term Loan B, due 1/7/2013 592,500 594,000
9 1/4% senior unsecured notes,
due 2/15/2014 400,326 400,340
2 3/8% convertible senior
debentures, due 4/1/2026 373,750 373,750
Capital lease obligations 9,531 9,565
Less: current portion (7,586) (7,337)
Total long-term debt and
capital lease obligations 1,368,521 1,370,318
Long-Term Deferred Revenue 19,243 19,672
Other Long-Term Liabilities 22,899 20,237
Stockholders’ Equity 572,843 566,225
Total $2,253,624 $2,264,718
(1) For complete financials and related footnotes, please refer to the
Company’s SEC filings.
Time Warner Telecom Inc.
Condensed Consolidated Statements of Cash Flows
(Dollars in thousands)
Unaudited (1)
Three Months Ended
March 31, December 31,
2008 2007
Cash flows from operating activities:
Net Loss ($944) ($5,292)
Adjustments to reconcile net loss to
net cash provided by operating activities:
Depreciation, amortization, and
accretion 69,859 73,129
Stock-based compensation 6,085 5,810
Deferred debt issue, extinguishment
costs and other 583 1,191
Changes in operating assets and liabilities:
Receivables, prepaid expense and
other assets 1,683 8,551
Accounts payable, deferred
revenue, and other liabilities (18,392) 12,462
Net cash provided by operating
activities 58,874 95,851
Cash flows from investing activities:
Capital expenditures (59,637) (66,041)
Proceeds from maturities of investments - 50,420
Proceeds from sale of assets and
other investing activities (2,387) (1,762)
Net cash used in investing activities (62,024) (17,383)
Cash flows from financing activities:
Net proceeds from issuance of common
stock upon exercise of stock options
and in connection with the employee stock
purchase plan 1,477 7,198
Payment of debt and capital lease
obligations (1,640) (1,620)
Net cash (used in) provided by
financing activities (163) 5,578
Increase (decrease) in cash and
cash equivalents (3,313) 84,046
Cash and cash equivalents at the
beginning of the period 321,531 237,485
Cash and cash equivalents at the
end of the period $318,218 $321,531
Supplemental disclosures of cash flow
information:
Cash paid for interest $27,546 $15,674
Addition of capital lease obligation - $546
Supplemental information to reconcile
capital expenditures:
Capital expenditures per cash
flow statement $59,637 $66,041
Addition of capital lease obligation - 546
Total capital expenditures $59,637 $66,587
(1) For complete financials and related footnotes, please refer to the
Company’s SEC filings.
Time Warner Telecom Inc.
Selected Operating Statistics
Unaudited (1)
Three Months Ended
2007 2008
Mar. 31 Jun. 30 Sept. 30 Dec. 31 Mar. 31
Operating Metrics:
Route Miles
Metro 18,092 18,324 18,520 18,832 19,009
Regional 6,884 6,922 6,921 6,921 6,921
Total 24,976 25,246 25,441 25,753 25,930
Buildings (2)
Fiber connected buildings,
on-net 7,689 7,884 8,109 8,355 8,587
Networks
Class 5 Switches 71 71 70 70 70
Soft Switches 35 35 35 36 36
Headcount
Total Headcount 2,778 2,817 2,876 2,859 2,883
Sales Associates (3) 490 497 519 508 511
Customers
Total Customers (4) 31,431 31,342 31,440 31,638 31,200
(1) For complete financials and related footnotes, please refer to the
Company’s SEC filings.
(2) Fiber connected buildings (e.g. “on-net”) represents customer
locations to which the Company’s fiber network is directly connected.
(3) Includes Sales Account Executives and Customer Care Specialists.
(4) Consolidated customer counts reflect higher churn for the acquired
operations’ customer segment as well as conversion of the acquired
customer base to a common customer profile in the second quarter of
2007.
SOURCE Time Warner Telecom Inc.
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