Another strong quarter from TW Telecom (NASDAQ:TWTC, news, filings), as the company posted revenues above analyst estimates and earnings per share that were generally in the right place. They added some 616 on-net buildings during the quarter, which along with the network upgrades they have been working on sent capex up above the $100M mark for the quarter. Here are the rest of the numbers in some context:
| ($ in millions) | Q2/12 | Q3/12 | Q4/12 | Q1/13 | Q2/13 | Comments |
|---|---|---|---|---|---|---|
| – Data & Internet Services | 182.5 | 189.2 | 197.8 | 202.1 | 209.6 | Solid growth # |
| – Network Services | 83.0 | 81.3 | 81.0 | 78.9 | 78.5 | |
| – Voice Services | 91.0 | 91.1 | 92.1 | 92.3 | 93.1 | |
| – Intercarrier Compensation | 8.0 | 7.5 | 7.0 | 7.9 | 8.3 | Fluctuates |
| Total Revenue | 364.5 | 368.9 | 377.9 | 381.2 | 389.5 | Street:386 |
| M-EBITDA | 134.0 | 136.5 | 138.3 | 136.0 | 137.3 | |
| M-EBITDA Margin | 36.8% | 37.0% | 36.6% | 35.7% | 35.3% | Reflecting product dev |
| Earnings per share | 0.13 | 0.14 | 0.11 | 0.09 | 0.12 | |
| Revenue Churn | 0.9% | 0.8% | 0.9% | 0.8% | 0.9% | |
| Capital Expenditures | 80.8 | 83.9 | 99.6 | 90.9 | 101.0 | |
| On-net buildings added | 462 | 552 | 497 | 498 | 616 | Surging forward again. |
| Free Cash Flow | 37.7 | 37.2 | 17.5 | 23.9 | 16.1 |
Along with its operations, tw telecom has been buying back a heck of a lot of stock lately. Through August 6 they had bought back some $278M worth of shares since the beginning of the year, and today they announed a new $500M buyback program to give the idea even more running room. They also retired $373.7M of convertible debt that might have become 20M in shares one day. All that left them with $245M in cash and equivalents at the end of Q2, a number they will be aiming generally at $300M going forward.
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Categories: Financials · Metro fiber
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What’s this talk about increased “access costs” and recent growth rates no longer attainable in the near term, i.e. sequentially and yoy?
So, less than a 6.9 percent yoy growth rate going forward?
The Company’s bookings7, or sales, continued to grow in the second quarter compared to the same period last year and the prior quarter, as the Company takes market share and sells more to existing customers, although not at a high enough rate to sustain its 2012 revenue growth rate.
Meez believz that Level (3) is going to have a greater than eight percent top line growth rate going forward from a “base” that is four times as large, and on net “margins” for core network services without the “access charges” encumbering twtc which trounces their numbers.
I like the Kool-Aid that I drink. Buy the buy, and don’t lie. imo
I think that classifies as talking to yourself, pal.
Allz I knowz is that if I actually wanted to bet long on any CLECs (and I don’t), you can go with:
—the one that has never turned a profit and is betting on some DSL to a bunch of retail shops for the name recognition
OR
—the one that has always turned a profit and claims to want to turn network into an online “as a service” transaction like the rest of the commoditized world
I would bet on the latter. But to each his own. CarlK has always seemed so convincing!
Yeah, I remember attempting to convince some here including Goldman’s en_ron_hubbard–did he pass away because I don’t see his reflections any more?–that clwr would go out a hell of a lot more than Son’s first $2.97 offer via Softbank.
How did that work out for inquiring minds? Sixty six percent better in significantly less than one year by memory. The Kool-Aid I was drinking then, worked out like “Mighty Fine” pudding for me.
I am sticking with the former and not the latter while considering a host of positive catalysts including a perpetual refinancing story that will create interest expense savings in the hundreds of millions………………
Rob, you should really consider adding a “like” feature to comments. Your site is nearly as entertaining as it is informative. Not a bad thing in today’s age.
I think the deal has a lot to do with name recognition, but also to gain some capital and strategically build out into multi-tenant sites and open up the floodgates to Sales. They’ve turned much attention to enterprise so this makes some sense, right?
Hard to argue TW’s numbers though.