tw telecom Reports Fourth Quarter and Full Year 2012 Results

         tw telecom Reports Fourth Quarter and Full Year 2012 Results

For 2012 grew revenue 7.6%, Net Income 32.8% and Modified EBITDA1 8.6%
compared to 2011 and achieved 36.8% Modified EBITDA margin1 for the year

Delivers Ongoing Industry-Leading Innovation Through New Products and
Capabilities

PR Newswire

LITTLETON, Colo., Feb. 11, 2013

LITTLETON, Colo., Feb. 11, 2013 /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 fourth quarter 2012 financial
results, including $377.9 million of revenue, $17.3 million of net income,
$138.3 million of Modified EBITDA ("M-EBITDA"), $143.9 million of net cash
provided by operating activities and $17.5 million of levered free cash
flow^3. For the year, the Company reported $1.47 billion in revenue, $76.9
million of net income, $540.6 million of M-EBITDA, $463.7 million of net cash
provided by operating activities and $129.7 million of levered free cash flow.

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

"In 2012, we achieved strong comprehensive financial results while rapidly
deploying industry-leading Intelligent Network and advanced Ethernet
capabilities," said Larissa Herda, tw telecom's Chairman, CEO and President.
"In 2013, we're further advancing our long-term strategic vision which
includes providing customers with unprecedented control and visibility of
their network that we believe will accelerate the momentum in our business.
We're implementing several growth initiatives including investing in new
technologies to drive ongoing innovative capabilities, expanding our sales
resources for greater distribution and further automating network
functionality for more dynamic customer connectivity. These initiatives are
all focused on further driving our revenue growth."

Highlights for the Year – 2012 compared to 2011

  oGrew total revenue 7.6% year over year compared to 7.4% for 2011
  oGrew enterprise revenue 10.5% year over year compared to 9.4% for 2011
  oGrew data and Internet revenue 15.4% year over year compared to 18.2% for
    2011, driven primarily by a 22.4% increase in strategic Ethernet and
    VPN-based product revenue
  oGrew Net Income 32.8% to $76.9 million in 2012 vs. $57.9 million in 2011,
    and grew basic earnings per share to $0.51 in 2012 from $0.39 in 2011
  oGrew M-EBITDA 8.6% to $540.6 million representing a 36.8% M-EBITDA margin
    for 2012 compared to 36.4% in 2011
  oDelivered $129.7 million of levered free cash flow, or 8.8% of revenue in
    2012 compared to 6.7% in 2011

Business Trends

"In 2012, we achieved substantial expansion of our cash flow and net income,
and strong revenue and M-EBITDA growth coupled with efficient capital
investment," said Mark Peters, tw telecom's Executive Vice President and Chief
Financial Officer. "Our bookings^7, or sales, for the quarter grew over both
the prior quarter and the same period last year. Sales also grew for the full
year over the prior year, although at a lower pace than our 2012 total revenue
growth rate. Our focus going into 2013 is to make investments designed to
increase our sales growth rate over time," said Peters. 

"Consistent with our comments last quarter, we began increasing the number of
sales employees in the quarter to capture growing market demand and greater
share. A component of our growth initiatives in 2013 is to further expand our
direct and indirect sales force and support resources, which naturally will
dampen our M-EBITDA in the near-term as we position ourselves for these
growing opportunities."

Product Innovation and Differentiation

"Our plans for 2013 include further differentiation of our product portfolio,"
said John Blount, tw telecom's Chief Operating Officer. "After successfully
launching two phases of our Intelligent Network in 2012, we started 2013 with
the launch of a unique new Intelligent Network feature. This feature provides
proactive notification of network information based on parameters set by
customers, which enables greater flexibility and unprecedented visibility to
manage their networks. For 2013 we expect to add additional industry-leading
capabilities that will allow us to continue to better serve customers and help
win market share."

Operational Metrics

Revenue churn^4 was 0.9% for the current quarter, up from 0.8% in both the
prior quarter and the same period last year. Full year 2012 revenue churn was
0.9%, consistent with 2011. 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 and indicative of a loyal customer base, strong customer
experience strategy and competitive product portfolio.

The Company had nearly 28,000 customers as of December 31, 2012. Customer
churn^4 was 0.9% for both the current quarter and prior quarter, down from
1.0% in the same quarter last year. The Company ended the year with
approximately 29,000 fiber route miles (of which over 22,000 were metro
miles). 

The Company also ended the year with 17,948 buildings directly served by its
fiber network, reflecting an increase of 497 from ongoing success-based
investments as well as an increase of 532 previously connected buildings that
were identified during an alignment of key operating systems in 2012.

Capital Investments

Capital investments were $99.6 million for the quarter as compared to the
prior quarter of $83.9 million and for the same period last year of $86.6
million. The increase in the fourth quarter over the other two periods
primarily reflects timing of projects, including capacity-driven IP Backbone
network upgrades to support data product demand, strategic fiber purchases to
extend the Company's network reach and technology investments to enable future
capabilities.

For the year, the Company invested $343.4 million in 2012 compared to $342.7
million in 2011, or 23.4% and 25.1% of revenue for each period respectively,
with success-based initiatives reflecting the majority of these investments.
The Company expects capital investments for 2013 to be approximately $360 to
$370 million with the majority tied to new sales opportunities.

Trends and 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 seasonality of sales and installations^5, usage, rate changes,
disputes, settlements, repricing for contract renewals and fluctuations in
revenue churn, expenses, capital expenditures and taxes and fees.

The Company expects low first quarter sequential revenue growth due to a $2.2
million fourth quarter customer revenue settlement that will not recur, the
negative impact of a first quarter rate decrease for certain taxes and fees
billed to customers, and the timing of installations, seasonality, and other
items referenced above. The Company also expects M-EBITDA margin to
temporarily decline due to the anticipated lower revenue growth rate combined
with the impact from its growth initiatives and seasonal cost increases, which
includes an estimated $4.0 million sequential cost increase due primarily to
the annual resetting of payroll taxes.

Intercarrier compensation revenue represented 2% of total revenue in 2012.
Under a November 2011 FCC Order, intercarrier compensation rates are declining
over a six-year period that began in July 2012, with the next rate step down
to occur in the third quarter of 2013.

On October 2, 2012, the Company completed a private offering of $480 million
of 5.375% Senior Notes due 2022, priced at par. The Company may use the net
proceeds to settle any Convertible Debentures obligation or for general
corporate purposes.

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

Revenue for the quarter was $377.9 million compared to $351.5 million for the
fourth quarter last year, representing a year over year increase of $26.4
million or 7.5%. Revenue grew primarily due to ongoing enterprise revenue
growth. Key changes in revenue included:

  o$28.4 million increase in revenue from enterprise customers, or 10.4% year
    over year, driven primarily by data and Internet services
  o$1.3 million decrease in revenue from carriers, primarily due to churn and
    repricing for contract renewals, partially offset by growth in Ethernet
    services

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

  o15.2% 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 and repricing. Data and Internet revenue
    represents 52% of total revenue for the quarter compared to 49% a year ago
  o6.1% increase in voice services, primarily reflecting sales of converged
    and other voice solutions, and an increase in certain taxes and fees,
    partially offset by churn
  o5.2% decrease in network services, primarily reflecting churn and
    repricing for contract renewals largely in transport services which
    outpaced growth in colocation services

Operating Costs

Operating costs for the quarter increased year over year, primarily as a
result of revenue growth, which included increases in network access costs and
certain taxes and fees, as well as higher employee-related costs. Operating
costs as a percentage of revenue were 42.1% for the quarter compared to 41.6%
for the same period last year. Modified gross margin^6 as a percentage of
revenue was 58.0% in the current quarter compared to 58.5% in the same period
last year due to an increase in operating costs discussed above as well as the
dilutive impact of growth in certain taxes and fees.

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 as a result of an increase in
employee-related and regulatory costs, somewhat offset by a reduction in bad
debt expense. SG&A costs as a percentage of revenue decreased to 23.1% for
the quarter from 23.9% for the same period last year. This primarily reflects
lower employee costs and bad debt expense, which declined as a percentage of
revenue year over year.

Net Income

Net income was $17.3 million for the quarter compared to $16.4 million from
the same period last year, reflecting M-EBITDA growth, offset by an increase
in interest expense related to the October financing, and higher depreciation
expense. The Company delivered basic earnings per share of $0.11 for both the
current quarter and the same period last year.

M-EBITDA and Margins

M-EBITDA grew to $138.3 million for the quarter, an increase of 8.0% from the
same period last year primarily as a result of revenue growth. M-EBITDA
margin for the quarter was 36.6% as compared to 36.4% for the same period last
year, as employee costs and bad debt expense as a percentage of revenue
declined year over year somewhat offset by the dilutive impact of the growth
in certain taxes and fees.

Sequential Results – Fourth Quarter 2012 compared to Third Quarter 2012

Revenue for the quarter was $377.9 million, as compared to $368.9 million for
the third quarter of 2012, an increase of $9.0 million, or 2.4%, representing
the 33^rd consecutive quarter of sequential growth. Revenue grew due to
ongoing enterprise growth. Key changes in revenue included:

  o$9.0 million increase in enterprise revenue, representing 3.1% sequential
    growth driven primarily by data and Internet services, a $2.2 million
    customer settlement and an increase in certain taxes and fees
  o$0.4 million increase in revenue from carrier customers, primarily
    reflecting growth in Ethernet services, offset by churn and repricing for
    contract renewals

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

  o4.6% increase for data and Internet services, primarily driven by an
    increase in strategic Ethernet and VPN-based product sales and other
    services, a $2.2 million customer settlement, partially offset by churn
    and repricing
  o1.1% increase in voice services, primarily reflecting an increase in sales
    of converged solutions and an increase in certain taxes and fees, offset
    by churn and a reduction in usage
  oNetwork services were largely unchanged, primarily reflecting churn and
    repricing for contract renewals mostly in transport services, which
    outpaced growth in colocation services and an increase in settlements

Operating Costs

Operating costs increased primarily as a result of revenue growth and included
higher network access costs and an increase in certain taxes and fees as well
as increased employee-related costs, somewhat offset by seasonally lower
utility costs. Operating costs were 42.1% of revenue for the quarter and
42.3% for the prior quarter. Modified gross margin for the quarter as a
percentage of revenue was 58.0% compared to 57.8% in the prior quarter.

Selling, General and Administrative Costs

SG&A costs increased primarily reflecting an increase in employee-related
costs, including commissions and benefits expense, partially offset by a
decrease in bad debt expense. SG&A was 23.1% of revenue for the quarter and
22.6% for the prior quarter.

Net Income

Net income was $17.3 million for the quarter, down from $21.0 million in the
prior quarter, primarily reflecting an increase in interest expense related to
the October financing, and higher depreciation expense primarily resulting
from new asset additions, partially offset by a decrease in income tax expense
and M-EBITDA growth. The Company delivered basic earnings per share of $0.11
for the quarter compared to $0.14 in the prior quarter.

M-EBITDA and Margins

M-EBITDA was $138.3 million for the quarter, an increase of 1.3% from the
prior quarter primarily as a result of revenue growth. M-EBITDA margin was
36.6% for the quarter compared to 37.0% for the prior quarter, reflecting an
increase primarily in commissions and other benefits expense as well as the
dilutive impact of certain taxes and fees.

tw telecom plans to conduct a webcast conference call to discuss its earnings
results on February 12, 2013 at9:00 a.m. MST (11:00 a.m. EST). 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 2013 and beyond, including statements regarding product and
platform plans, growth prospects, market opportunities, sales growth, cash
flow, growth initiatives, sales force, customer opportunities, network
capabilities, sales and installations timing, demand, revenue growth, margins,
the impact of regulatory changes, churn, business trends and fluctuations,
taxes andexpected 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 subsequent 2012 Annual Report on Form 10-K and quarterly
reports on Form 10-Q. 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., is a leading national provider
of managed services, including Business Ethernet, converged and IP VPN
solutions for enterprises throughout the U.S. and globally. tw telecom also
delivers secure, scalable private connections for transport data networking,
Internet access, voice, VPN, VoIP and security to large organizations and
communications services companies. Employing a resilient fiber network
infrastructure, robust product portfolio and its own Intelligent Network
capabilities, tw telecom delivers customers overall economic value, an
industry-leading quality service experience, and improved business
productivity. Please visit www.twtelecom.com for more information.







tw telecom inc.
Consolidated Operations Highlights
(Dollars in thousands)
Unaudited (1)
                      Three Months Ended           Twelve Months Ended
                      Dec 31,                      Dec 31,
                      2012     2011      Growth    2012      2011       Growth
                                         %                              %
Revenue
 Data and Internet    $197,802 $171,657  15.2%     $746,297  $646,682   15.4%
 services
 Voice services      92,062   86,775    6.1%      363,743   338,655    7.4%
 Network services     81,014   85,422    -5.2%     330,088   350,709    -5.9%
    Service Revenue   370,878  343,854   7.9%      1,440,128 1,336,046  7.8%
 Intercarrier         7,015    7,653     -8.3%     30,127    30,845     -2.3%
 compensation
       Total Revenue  377,893  351,507   7.5%      1,470,255 1,366,891  7.6%
Expenses
 Operating costs     159,179  146,320             617,553   571,461
       Gross Margin   218,714  205,187             852,702   795,430
 Selling, general
 and administrative   87,412   83,854              341,423   325,538
 costs
 Depreciation,
 amortization and     74,703   72,572              284,292   283,329
 accretion
       Operating      56,599   48,761    16.1%     226,987   186,563    21.7%
       Income
 Interest expense    (21,720) (15,944)            (68,271)  (64,246)
 Debt extinguishment  -        -                   (77)      -
 costs
 Non-cash interest
 expense and          (6,771)  (6,027)             (25,486)  (23,472)
 deferred debt
 costs
 Interest income      512      102                 793       545
       Income before  28,620   26,892    6.4%      133,946   99,390     34.8%
       income taxes
 Income tax expense   11,352   10,500              57,058    41,479
       Net Income     $17,268  $16,392   5.3%      $76,888   $57,911    32.8%
SUPPLEMENTAL INFORMATION TO RECONCILE MODIFIED GROSS MARGIN AND
MODIFIED EBITDA
 Gross Margin         $218,714 $205,187            $852,702  $795,430
 Add back non-cash
 stock-based          476      590                 1,904     2,327
 compensation
 expense
       Modified       219,190  205,777   6.5%      854,606   797,757    7.1%
       Gross Margin
 Selling, general
 and administrative   87,412   83,854              341,423   325,538
 costs
 Add back non-cash
 stock-based          6,507    6,133               27,396    25,490
 compensation
 expense
       Modified       138,285  128,056   8.0%      540,579   497,709    8.6%
       EBITDA
 Non-cash
 stock-based          6,983    6,723               29,300    27,817
 compensation
 expense
 Depreciation,
 amortization and     74,703   72,572              284,292   283,329
 accretion
 Net Interest         21,208   15,842              67,478    63,701
 expense
 Debt extinguishment  -        -                   77        -
 costs
 Non-cash interest
 expense and          6,771    6,027               25,486    23,472
 deferred debt costs
 Income tax expense   11,352   10,500              57,058    41,479
       Net Income     $17,268  $16,392             $76,888   $57,911
 Modified Gross       58.0%    58.5%               58.1%     58.4%
 Margin %
 Modified EBITDA      36.6%    36.4%               36.8%     36.4%
 Margin %
Free Cash Flow:
 Modified EBITDA      $138,285 $128,056  8.0%      $540,579  $497,709   8.6%
 Less: Capital        99,624   86,637    15.0%     343,425   342,731    0.2%
 Expenditures
 Unlevered Free Cash  38,661   41,419    -6.7%     197,154   154,978    27.2%
 Flow
 Less: Net interest   21,208   15,842    33.9%     67,478    63,701     5.9%
 expense
 Levered Free Cash    $17,453  $25,577   -31.8%    $129,676  $91,277    42.1%
 Flow
(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
                                                  Dec 31,   Sept 30,
                                                  2012      2012      Growth %
Revenue
   Data and Internet services                     $197,802  $189,164  4.6%
   Voice services                                92,062    91,052    1.1%
   Network services                               81,014    81,261    -0.3%
    Service Revenue                      370,878   361,477   2.6%
   Intercarrier compensation                     7,015     7,457     -5.9%
                 Total Revenue                    377,893   368,934   2.4%
Expenses
   Operating costs                               159,179   156,195
                 Gross Margin                     218,714   212,739
   Selling, general and administrative costs     87,412    83,341
   Depreciation, amortization and accretion       74,703    70,726
                 Operating Income                56,599    58,672    -3.5%
   Interest expense                               (21,720)  (15,495)
   Debt extinguishment costs                      -         (77)
   Non-cash interest expense and deferred debt    (6,771)   (6,330)
   costs
   Interest income                                512       84
                 Income before income taxes       28,620    36,854    -22.3%
   Income tax expense                             11,352    15,885
                 Net Income                      $17,268   $20,969   -17.6%
SUPPLEMENTAL INFORMATION TO RECONCILE MODIFIED GROSS MARGIN
AND MODIFIED EBITDA
   Gross Margin                                   $218,714  $212,739
   Add back non-cash stock-based compensation     476       473
   expense
                 Modified Gross Margin            219,190   213,212   2.8%
   Selling, general and administrative costs      87,412    83,341
   Add back non-cash stock-based compensation     6,507     6,667
   expense
                 Modified EBITDA                  138,285   136,538   1.3%
   Non-cash stock-based compensation expense      6,983     7,140
   Depreciation, amortization and accretion       74,703    70,726
   Net Interest expense                           21,208    15,411
   Debt extinguishment costs                      -         77
   Non-cash interest expense and deferred debt    6,771     6,330
   costs
   Income tax expense                             11,352    15,885
                 Net Income                       $17,268   $20,969
   Modified Gross Margin %                        58.0%     57.8%
   Modified EBITDA Margin %                       36.6%     37.0%
Free Cash Flow
   Modified EBITDA                                $138,285  $136,538  1.3%
   Less: Capital Expenditures                     99,624    83,900    18.7%
   Unlevered Free Cash Flow                       38,661    52,638    -26.6%
   Less: Net interest expense                     21,208    15,411    37.6%
   Levered Free Cash Flow                         $17,453   $37,227   -53.1%
(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          Twelve Months Ended
                               Dec. 31  Sept. 30  Dec. 31  Dec. 31    Dec. 31
                               2012     2012      2011     2012       2011
Weighted Average Shares
Outstanding (thousands)
  Basic                       148,253  147,973   146,416  147,675    147,247
  Diluted (2)                  152,311  150,359   148,125  150,059    149,349
Basic Income per Common Share  $0.11    $0.14     $0.11    $0.51      $0.39
Diluted Income per Common      $0.11    $0.14     $0.11    $0.50      $0.38
Share
                               As of
                               Dec. 31  Sept. 30  Dec. 31
                               2012     2012      2011
Common shares (thousands)
  Actual Shares Outstanding    151,397  151,271   149,044
Unvested Restricted Stock
Units
and Restricted Stock Awards    4,573    4,598     4,182
(thousands)
Options (thousands)
  Options Outstanding         4,860    5,065     6,674
  Options Exercisable         4,169    4,369     4,974
  Options Exercisable and      4,169    4,369     3,114
  In-the-Money

(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)
                                        Dec. 31       Sept. 30     Dec. 31
                                        2012          2012         2011
                                ASSETS
  Cash, equivalents, and short term     $974,292      $459,397     $484,919
  investments
  Receivables                           106,770       114,407      104,374
          Less: allowance               (7,067)       (7,693)      (8,192)
                    Net receivables     99,703        106,714      96,182
  Prepaid expenses and other current    19,164        19,475       17,340
  assets
  Deferred income taxes                 76,160        65,008       65,008
                    Total other current 95,324        84,483       82,348
                    assets
  Property, plant and equipment         4,247,868     4,186,321    4,026,134
          Less: accumulated            (2,755,622)   (2,721,086)  (2,598,922)
          depreciation
                    Net property, plant 1,492,246     1,465,235    1,427,212
                    and equipment
  Deferred income taxes                 101,885       123,063      162,535
  Goodwill                              412,694       412,694      412,694
  Intangible assets, net of accumulated 17,578        19,362       17,742
  amortization
  Other assets, net                    30,015        22,736       24,594
                    Total other         562,172       577,855      617,565
                    non-current assets
                        Total           $3,223,737    $2,693,684   $2,708,226
  LIABILITIES AND STOCKHOLDERS' EQUITY
  Current Liabilities
          Accounts payable              $55,857       $61,819      $52,739
          Deferred revenue              45,471        44,413       42,253
          Accrued taxes, franchise and  60,844        65,975       66,880
          other fees
          Accrued interest             20,343        7,653        13,934
          Accrued payroll and benefits  45,727        40,840       44,284
          Accrued carrier costs         30,765        23,988       32,760
          Current portion of debt and   374,969       369,404      7,733
          lease obligations
          Other current liabilities     29,163        29,227       31,361
                    Total current       663,139       643,319      291,944
                    liabilities
  Long-Term Debt and Capital Lease
  Obligations
          2 3/8% convertible senior     373,743       373,743      373,744
          debentures, due 4/1/2026 (2)
          Unamortized Discount         (5,643)       (11,168)     (27,057)
                    Net                 368,100       362,575      346,687
          Floating rate senior secured
          debt - Term Loan B, due       -             -            102,055
          1/7/2013
          Floating rate senior secured
          debt - Term Loan B, due       463,019       464,250      467,946
          12/30/2016
          8% senior unsecured notes,
          due 3/1/2018, net of          428,001       427,905      427,614
          unamortized discount
          5 3/8% senior unsecured       480,000       -            -
          notes, due 10/1/2022
          Capital lease                 20,091        17,917       16,251
          obligations
                    Less: current       (374,969)     (369,404)    (7,733)
                    portion
                    Total long-term
                    debt and capital    1,384,242     903,243      1,352,820
                    lease obligations
  Long-Term Deferred Revenue            23,177        24,031       22,296
  Other Long-Term Liabilities          41,240        36,840       35,445
  Stockholders' Equity                 1,111,939     1,086,251    1,005,721
                        Total           $3,223,737    $2,693,684   $2,708,226
(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 debenturesin 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              Twelve Months Ended
                          Dec. 31    Sept. 30   Dec. 31   Dec. 31    Dec. 31
                          2012       2012       2011      2012       2011
Cash flows from operating
activities:
 Net Income              $17,268    $20,969    $16,392   $76,888    $57,911
 Adjustments to reconcile
 net income to net cash
 provided by operating
 activities:
    Depreciation,
    amortization and      74,703     70,726     72,572    284,292    283,329
    accretion
    Deferred income taxes 4,253      15,329     5,973     48,559     35,756
    Stock-based           6,983      7,140      6,723     29,300     27,817
    compensation expense
    Amortization of
    discount on debt and  6,772      6,407      6,014     25,546     23,388
    deferred debt costs
    and other
 Changes in operating
 assets and liabilities:
    Accounts receivable,  7,011      (5,806)    (3,928)   (3,521)    (14,584)
    net
    Prepaid expenses and
    other current and     1,197      1,226      6,307     1,498      (7,627)
    noncurrent assets
    Accounts payable      (1,254)    3,172      (7,320)   (429)      (6,338)
    Accrued interest      12,680     (6,239)    6,449     6,393      (1,261)
    Accrued payroll and   4,914      165        4,483     1,469      2,566
    benefits
    Deferred revenue,
    current and           204        (41)       495       4,099      11,797
    noncurrent
    Other current and
    noncurrent            9,161      (1,863)    (2,355)   (10,418)   (9,166)
    liabilities
      Net cash provided
      by operating        143,892    111,185    111,805   463,676    403,588
      activities
Cash flows from investing
activities:
 Capital expenditures     (97,069)   (83,474)   (86,637)  (338,118)  (340,731)
 Purchase of investments  (103,308)  (19,927)   (28,327)  (243,048)  (223,638)
 Proceeds from sale of    77,748     20,828     25,615    204,629    208,340
 investments
 Other investing          (1,963)    (1,178)    (646)     2,566      3,230
 activities, net
      Net cash used in
      investing           (124,592)  (83,751)   (89,995)  (373,971)  (352,799)
      activities
Cash flows from financing
activities:
 Net proceeds from
 issuance of common stock
 upon exercise ofstock   3,327      4,307      922       13,462     9,966
 options and vesting of
 restricted stock awards
 and units
 Purchases of treasury    (1,890)    -          (8,562)   (13,409)   (58,562)
 stock
 Excess tax (shortfalls)
 benefits from            (3)        500        1,385     1,213      1,385
 stock-based compensation
 Net proceeds from        470,796    -          -         470,796    -
 issuance of debt
 Retirement of debt       -          (101,518)  -         (101,518)  -
 obligation
 Payment of debt and
 capital lease            (1,602)    (1,601)    (1,902)   (6,915)    (7,106)
 obligations
      Net cash provided
      by (used in)        470,628    (98,312)   (8,157)   363,629    (54,317)
      financing
      activities
      Increase (decrease)
      in cash and cash    489,928    (70,878)   13,653    453,334    (3,528)
      equivalents
      Cash and cash
      equivalents at the  316,800    387,678    339,741   353,394    356,922
      beginning of the
      period
      Cash and cash
      equivalents at the  $806,728   $316,800   $353,394  $806,728   $353,394
      end of the period
Supplemental disclosures
cash, equivalents and
short term investments
      Cash and cash
      equivalents at the  $806,728   $316,800   $353,394  $806,728   $353,394
      end of the period
      Short term          167,564    142,597    131,525   167,564    131,525
      investments
         Total of cash,
         equivalents and  $974,292   $459,397   $484,919  $974,292   $484,919
         short term
         investments
Supplemental disclosures
of cash flow information:
 Cash paid for            $9,223     $22,009    $9,970    $63,082    $67,566
 interest
 Cash paid for income     $1,235     $1,508     $218      $7,801     $3,231
 taxes, net of refunds
 Addition of capital      $2,555     $426       -         $5,307     $2,000
 lease obligation
Supplemental information
to reconcile capital
expenditures:
 Capital expenditures per $97,069    $83,474    $86,637   $338,118   $340,731
 cash flow statement
 Addition of capital      2,555      426        -         5,307      2,000
 lease obligation
 Total capital            $99,624    $83,900    $86,637   $343,425   $342,731
 expenditures
(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.   Jun.   Sept.  Dec.
                                                   31     30     30     31
Operating
Metrics:
 Buildings (2)  13,742  14,311  14,872   15,438   15,905 16,367 16,919 17,948
 (3)
 Headcount
   Total         2,985   3,071   3,065    3,051    3,059  3,089  3,087  3,147
   Headcount
   Sales         564     553     564      555      551    546    543    574
   Associates
 Customers
   Total         27,234  27,322  27,376   27,509   27,495 27,569 27,699 27,966
   Customers

(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.
(3) Q4 2012 building additions include an increase of 532 previously connected
buildings identified during alignment of key operating systems.



SOURCE tw telecom

Website: http://www.twtelecom.com
Contact: Investor Relations, Carole Curtin, +1-303-566-1000,
carole.curtin@twtelecom.com, or Media Relations, Bob Meldrum, +1-303-566-1354,
bob.meldrum@twtelecom.com
 
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