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 www.twtelecom.com/
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 www.twtelecom.com 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. 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. www.twtelecom.com
Please contact your sales person or account executive for more information.