Computeruser.com
Latest News

Tw telecom Reports Fourth Quarter and Full Year 2010 Results

LITTLETON, Colo. Feb. 7, 2011 – tw telecom inc. $324.8 million $119.4 million 1) $26.4 million 3) $17.5 million $1.273 billion $463.6 million $82.8 million $271.4 million $227.3 million

http://photos.prnewswire.com/prnh/20080626/LATH527LOGO

Larissa Herda tw telecom’s

Highlights for the Year – 2010 compared to 2009

  • 4)
  • 6)
  • Launched new product initiatives
  • Reduced revenue churn for the year to 1.0% from 1.3%
  • Grew total revenue 5.1% year over year and enterprise revenue 6.3%  
  • Grew data and Internet revenue 15.8%, driven largely by a 28.2% increase in Ethernet and managed VPN services
  • $463.6 million
  • Achieved a 36.4% M-EBITDA margin, a 40 basis point improvement
  • $1.80 $0.41 $0.22
  • $82.8 million
  • $50 million
  • Refinanced approximately two-thirds of debt, extending maturities at favorable market rates

Business Trends

Mark Peters tw telecom’s

Operational Metrics

5)

December 31, 2010 5)

Other Trends

8)

$3 million

In 2010, the Company reversed a previously established valuation allowance for its deferred tax assets.  As a result of the allowance reversal, the Company expects to record tax expense at an effective tax rate for book purposes of approximately 45% in 2011.  Due to its net operating loss tax carry forwards and bonus depreciation, the Company expects that cash taxes will not be materially different in 2011 from 2010.

Capital Expenditures

$78.1 million $77.8 million $72.3 million $321.8 million $274.9 million

$310 to $330 million

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

Revenue

$324.8 million $307.9 million $16.9 million

  • $15.3 million
  • $3.0 million
  • $1.5 million

  • 16.3% increase for data and Internet services, primarily due to continued success with Ethernet and IP-based product sales
  • 1.2% decrease in voice services, primarily reflecting churn and a reduction in usage-based services which outpaced new sales
  • 1.1% decrease for network services, primarily reflecting growth in high capacity and collocation services, as well as increased services to wireless providers, outpaced by churn

M-EBITDA and Margins  

$119.4 million $5.5 million

Operating costs for the quarter increased year over year, primarily due to increased network access costs associated with higher revenue, partially offset by network cost efficiencies.  Operating costs as a percent of revenue were 41.4% for the quarter and 42.2% for the same period last year.

Selling, general and administrative costs ("SG&A") increased year over year, primarily reflecting an increase in employee costs, including increased commissions due to higher installations as well as increased sales headcount.   SG&A costs as a percent of revenue were 24.0% for the quarter and 23.2% for the same period last year.

7)

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 Income

$17.5 million $11.1 million

Sequential Results – Fourth Quarter 2010 compared to Third Quarter 2010

Revenue

$324.8 million $320.3 million $4.5 million

  • $3.6 million
  • $1.0 million

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

  • 4.5% increase for data and Internet services, primarily due to continued success with Ethernet and IP-based product sales
  • 1.3% decrease in voice services, primarily reflecting churn and a reduction in usage-based services, which outpaced new sales
  • 0.8% decrease in network services due to churn, which outpaced new sales

M-EBITDA and Margins  

$119.4 million $115.5 million $3.8 million

Operating costs increased primarily reflecting increased access costs associated with the growth in revenue and higher employee-related expenses, partially offset by network cost efficiencies and seasonally lower utility costs.  Operating costs were 41.4% of revenue for the quarter and 41.6% for the prior quarter.  

SG&A costs were slightly down, primarily reflecting a reduction in bad debt expense. SG&A was 24.0% of revenue for the quarter and 24.5% for the prior quarter.  

Modified gross margin was 58.9% for the quarter compared to 58.7% for the prior quarter, an increase of 20 basis points.  M-EBITDA margin was 36.7% for the quarter compared to 36.1% for the prior quarter, an increase of 60 basis points primarily as a result of improved bad debt expense.

Net Income

$17.5 million $16.1 million

Summary  

"We exited 2010 with strong results, ongoing customer opportunities and momentum from our strategic initiatives that position us well for revenue growth, strong M-EBITDA margins and continued cash generation for 2011," said Herda.

February 8, 2011 9:00 a.m. MST 11:00 a.m. EST www.twtelecom.com

(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 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.

(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 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.

(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.

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

Financial Measures

Forward Looking Statements

September 30, 2010  tw telecom

About tw telecom

tw telecom Littleton, Colo. tw telecom www.twtelecom.com

tw telecom inc.

Consolidated Operations Highlights

(Dollars in thousands)

Unaudited (1)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2010

2009

Growth %

2010

2009

Growth %

Revenue

Data and Internet services

$145,107

$124,799

16%

$547,218

$472,647

16%

Network services

89,470

90,463

-1%

359,169

370,859

-3%

Voice services

81,891

82,860

-1%

332,870

333,274

0%

Service Revenue

316,468

298,122

6%

1,239,257

1,176,780

5%

Intercarrier compensation

8,349

9,812

-15%

33,914

34,610

-2%

Total Revenue

324,817

307,934

5%

1,273,171

1,211,390

5%

Expenses

Operating costs

134,554

129,855

528,965

503,960

Gross Margin

190,263

178,079

744,206

707,430

Selling, general and administrative costs

78,106

71,355

308,470

297,290

Depreciation, amortization, and accretion

72,534

74,290

289,564

296,167

Operating Income

39,623

32,434

146,172

113,973

Interest expense

(15,057)

(15,815)

(59,535)

(64,583)

Debt extinguishment costs

(17,070)

Non cash interest expense and deferred debt costs

(5,571)

(4,969)

(21,417)

(19,418)

Other income

825

Interest income

170

33

608

360

Income before income taxes

19,165

11,683

49,583

30,332

Income tax expense (benefit) (2)

1,671

587

(221,851)

2,746

Net Income

$17,494

$11,096

$271,434

$27,586

SUPPLEMENTAL INFORMATION TO RECONCILE MODIFIED GROSS MARGIN AND MODIFIED EBITDA

Gross Margin

$190,263

$178,079

$744,206

$707,430

Add back non-cash stock-based compensation expense

929

1,190

3,261

3,654

Modified Gross Margin

191,192

179,269

7%

747,467

Leave a comment

seks shop - izolasyon
basic theory test book basic theory test