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Delivering Strong Results;
Investing in Customers
National Metro                                Financial Highlights for
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tw telecom 2008 Financial Strength


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Transcript of "tw telecom 2008 Financial Strength"

  1. 1. Delivering Strong Results; Investing in Customers 4th Quarter and 2008 Report Today, more than ever, it is important to rely on service providers • tw telecom Announces who deliver results and invest to help customers win. Those who Comprehensive Managed understand how complex applications work, have the right network Services for Enterprises. management skills, listen to customers and solve their needs, are Introduces managed your most effective communications providers. It’s about enabling customer edge router customer networks to transmit voice, Internet and data most solution. efficiently and cost effectively across town, or across the country. • tw telecom Launches It’s about having a team of local and national personnel to keep MyPortal for Customers. your business “always on.” It’s about having tw telecom as your “Anytime from Anywhere” service provider. self-service capabilities streamline network performance monitoring, tw telecom Delivers Strong Results in 2008 order status, service changes, billing, etc. – Grew 2008 EPS to $.06 per share with $8.5 million Net Income – Generated $1.16 billion in revenue; $399 million in M-EBITDA; • Louisiana's Cameron $51 million in Levered Free Cash Flow1 State Bank Boosts Reach and Reliability with 31-site Voice and Data Solution “As customers continue to make the network an imperative for “ For 2008, we grew revenue, produced Net Income, further enhanced our strong running their businesses to optimize their cost efficiencies, we will focus on serving their evolving demand, which we believe will require large amounts of bandwidth as well as network management skills. To position ourselves for these opportunities, we are continuing targeted initiatives including product development, ongoing network expansion and further investment • from tw telecom. Houston's Amerex Brokers LLC Installs tw telecom Ethernet, Internet and Voice Services to Fortify in our customer experience, which we believe will serve us well.” liquidity position, Network. – Larissa Herda, tw telecom Chairman, CEO and President. and achieved To learn more, please visit “We are realistic about the economy, with the coming year record growth in being one in which we must remain nimble in adjusting our plans Levered Free Cash newsreleases. for any volatility in the economic environment. Our current plan Flow, resulting in is to continue to invest in targeted opportunities and position our strongest ourselves for the future, and we expect to deliver positive Levered Free Cash Fow for 2009.” overall financial – Mark Peters, tw telecom Executive Vice President and CFO performance ever. About tw telecom ” – Larissa Herda, tw telecom Chairman, CEO and President “tw telecom is in a solid strategic position with strong liquidity. We will continue to leverage our strategic position, develop new products and actively pursue opportunities to grow our business.” – Larissa Herda, tw telecom Chairman, CEO and President. tw telecom (NASDAQ: TWTC) is a leading provider of voice, Internet and data networking solutions Note 1: See the Company's SEC filings and Fourth Quarter 2008 earnings press release at for businesses and for a full description of financial results, forward-looking statements caution, and reconciliation of non-GAAP (Generally Accepted Accounting Principles) measures and other information. organizations in the U.S.
  2. 2. National Metro Financial Highlights for Connectivity the Fourth Quarter For the quarter ending Dec. 31, 2008 tw telecom — • Grew enterprise revenue 26 consecutive quarters and 9% year over year • Grew total revenue 5% year over year • Grew data and Internet revenue 23% year over year For Quarter Ended Dec. 31, 2008 As of Dec. 31, 2008 • Grew enterprise revenue Financial Information • 28 quarters of positive unlevered INTERCARRIER COMP 3% free cash flow to 74% of total revenue CARRIER • 26 quarters of enterprise revenue growth from 71% in the same 23% • 17 quarters of total revenue growth period last year • $352 million in cash and equivalents ENTERPRISE 74% • Generating Levered Free Cash Flow • Grew M-EBITDA 12% and Net Income year over year • Solid margins Highly diversified revenue base • Strong liquidity – 74% enterprise revenue mix – nearly 64% revenue fully on our network – No significant debt maturities until 2013 • Achieved a 35.4% M-EBITDA margin, a 200 basis point Strong Liquidity As of Dec. 31, 2008 improvement year over year Financial Flexibility As of Dec. 31, 2008 tw telecom Debt Maturities4 • Delivered $5.0 million of • No Near Term Major Debt Maturities $ in Millions Net Income in the quarter • Weighted Cost of Debt is 5.6%2 $1,000 • No Financial Maintenance Covenants1 • Over $352 million cash & equivalents $800 $374 • Over 9,400 enterprise • Unused $80 million revolver3 $600 buildings on our fiber network (1) The Company has no financial maintenance covenants $400 as of December 31, 2008. There are financial maintenance $564 covenants in the Company’s undrawn revolver which would only apply if drawn. (2) Based on annualized results for Q4 2008. $200 $6 $6 $6 $6 $400 • Approximately 30,000 (3) In January 2009, the Company decreased its revolver $0 customers by $20 million for that portion of the commitment backed by a failed financial institution. 2009 2010 2011 2012 2013 2014 (4) See Company’s SEC filing for full description of debt BANK DEBT 9.25% SENIOR NOTES CONVERTIBLE DEBENTURES 4 instruments. tw telecom • 10475 Park Meadows Drive • Littleton • CO 80124 © Copyright 2009. All rights reserved. Printed in the USA. Feb. 16. Item #021609. Not all products available in all markets. Please contact your sales person or account executive for more information.