Time Warner Cable Reports 2009 Third-Quarter Results

http://www.businesswire.com/news/home/20091105005292/en

NEW YORK--(Business Wire)--
Time Warner Cable Inc. (NYSE: TWC) today reported financial results for its
third quarter ended September 30, 2009.

Time Warner Cable Chief Executive Officer Glenn Britt said: "In the third
quarter we grew both Revenues and Adjusted OIBDA by 4%, and we continued to
generate a considerable amount of cash. This has enabled us to further pay down
the debt we incurred to fund our special dividend. We`re on track to return to
our target leverage in the first quarter of 2010."

Britt added: "Our business model is resilient even in a tough economy and in the
face of intense competition. We`ve built great assets in our plant and customer
relationships that provide a strong foundation for continuing growth. We intend
to continue operating the business aggressively yet prudently to generate
attractive returns for our shareholders."

FINANCIAL RESULTS

Revenues for the third quarter of 2009increased 4% over the prior year quarter
to $4.5 billion. Subscription revenues grew 5% to $4.3 billion driven by video
price increases and continued growth in digital video, high-speed data and
Digital Phone subscribers, partially offset by a year-over-year decrease in
basic video subscribers (resulting, in part, from the sale of a group of small
cable systems in December 2008). Advertising revenues declined 19% to $182
million, due primarily to year-over-year declines in the auto, media and
political categories.

(in millions; unaudited) 3rd Quarter Year-to-Date 9/30
2009 2008 Change 2009 2008 Change
Subscription revenues:
Video $ 2,698 $ 2,639 2 % $ 8,071 $ 7,878 2 %
High-speed data 1,138 1,056 8 % 3,362 3,082 9 %
Voice 480 421 14 % 1,402 1,184 18 %
Total Subscription revenues 4,316 4,116 5 % 12,835 12,144 6 %
Advertising revenues 182 224 (19 %) 501 654 (23 %)
Total revenues $ 4,498 $ 4,340 4 % $ 13,336 $ 12,798 4 %

Adjusted Operating Income before Depreciation and Amortization ("Adjusted
OIBDA") rose 4% over the third quarter of 2008 to $1.6 billion. The
year-over-year increase in Adjusted OIBDA was driven by revenue growth,
partially offset by higher video programming, employee and voice costs. Video
programming expenses grew 6% to $1.0 billion due to contractual rate increases,
incremental retransmission consent expense and the expansion of service
offerings, offset, in part, by a decline in basic video and premium channel
subscriptions. Employee costs were up 4% to $911 million, resulting primarily
from higher employee medical and pension expenses. Voice costs increased 12% to
$161 million primarily reflecting growth in Digital Phone subscribers. Adjusted
OIBDA for the third quarter of 2009 excludes restructuring costs and
separation-related "make-up" equity award costs, while Adjusted OIBDA in the
prior year period excludes restructuring costs. Operating Income was up 5% over
the third quarter of 2008 to $828 million as depreciation expense grew less than
Adjusted OIBDA.

(in millions; unaudited) 3rd Quarter Year-to-Date 9/30
2009 2008 Change 2009 2008 Change
Adjusted OIBDA(a) $ 1,623 $ 1,562 4 % $ 4,782 $ 4,540 5 %
Adjusted OIBDA margin(b) 36.1 % 36.0 % 35.9 % 35.5 %
Gain (loss) on sale of cable systems - - NM 2 (45 ) NM
Separation-related "make-up" equity award costs (4 ) - NM (6 ) - NM
Restructuring costs (14 ) (8 ) 75 % (64 ) (14 ) 357 %
OIBDA(a) 1,605 1,554 3 % 4,714 4,481 5 %
Depreciation (713 ) (700 ) 2 % (2,105 ) (2,123 ) (1 %)
Amortization (64 ) (66 ) (3 %) (183 ) (196 ) (7 %)
Operating Income $ 828 $ 788 5 % $ 2,426 $ 2,162 12 %

NM - Not meaningful.
(a) Refer to Note 3 to the accompanying consolidated financial statements for a definition of OIBDA and Adjusted OIBDA.
(b) Adjusted OIBDA margin is defined as Adjusted OIBDA as a percentage of total revenues.

Net Income Attributable to TWC was $268 million, or $0.76 per basic and diluted
common share, for the third quarter of 2009. Net income attributable to TWC
decreased for the third quarter of 2009 compared to the third quarter of 2008
due primarily to higher interest expense related to the debt incurred to fund
the Company`s $10.9 billion special cash dividend paid in March 2009, partly
offset by an increase in Operating Income and decreases in net income
attributable to noncontrolling interests and income tax expense. Refer to Note 2
to the accompanying consolidated financial statements for details regarding
certain items affecting the comparability of net income attributable to TWC for
the third quarter of 2009 to that of the third quarter of 2008.

(in millions, except per share data; unaudited) 3rd Quarter Year-to-Date 9/30
2009 2008 Change 2009 2008 Change
Net income attributable to TWC $ 268 $ 301 (11 %) $ 748 $ 820 (9 %)
Net income attributable to TWC per common share:
Basic $ 0.76 $ 0.92 (17 %) $ 2.15 $ 2.52 (15 %)
Diluted $ 0.76 $ 0.92 (17 %) $ 2.14 $ 2.52 (15 %)

Adjusted OIBDA less Capital Expenditures for the first nine months of 2009 was
$2.5 billion, a 27% increase over the first nine months of 2008, due to lower
capital expenditures and higher Adjusted OIBDA. Capital Expenditures for the
first nine months of 2009 totaled $2.3 billion, an 11% decrease compared to the
first nine months of 2008, largely reflecting lower residential capital
spending, particularly lower spending on customer premise equipment,
upgrades/rebuilds and line extensions, partially offset by higher commercial
capital spending.

(in millions; unaudited) 3rd Quarter Year-to-Date 9/30
2009 2008 Change 2009 2008 Change
Adjusted OIBDA $ 1,623 $ 1,562 4 % $ 4,782 $ 4,540 5 %
Capital expenditures (758 ) (874 ) (13 %) (2,287 ) (2,582 ) (11 %)
Adjusted OIBDA less Capital expenditures $ 865 $ 688 26 % $ 2,495 $ 1,958 27 %

Free Cash Flow for the first nine months of 2009 increased 19% to $1.5 billion
from $1.3 billion in the first nine months of 2008, due mainly to lower capital
expenditures, partially offset by a decrease in cash provided by operating
activities. Cash Provided by Operating Activities for the first nine months of
2009 was $3.8 billion, a 2% decrease from $3.9 billion in the first nine months
of 2008. This decrease was related primarily to an increase in net cash interest
payments, offset partly by higher Adjusted OIBDA, lower pension plan
contributions and a change in working capital requirements. Free Cash Flow per
diluted common share was $4.29 for the first nine months of 2009 compared to
$3.85 in the first nine months of 2008.

(in millions, except per share data; unaudited) 3rd Quarter Year-to-Date 9/30
2009 2008 Change 2009 2008 Change
Cash provided by operating activities $ 1,234 $ 1,329 (7 %) $ 3,805 $ 3,864 (2 %)
Capital expenditures (758 ) (874 ) (13 %) (2,287 ) (2,582 ) (11 %)
Cash paid for other intangible assets (7 ) (6 ) 17 % (17 ) (25 ) (32 %)
Partnership distributions and principal payments on capital leases (4 ) (1 ) 300 % (5 ) (3 ) 67 %
Free Cash Flow(a) $ 465 $ 448 4 % $ 1,496 $ 1,254 19 %

Free Cash Flow per diluted common share $ 1.31 $ 1.37 (4 %) $ 4.29 $ 3.85 11 %
Average diluted common shares outstanding 354.5 326.1 9 % 348.9 325.9 7 %

(a) Refer to Note 3 to the accompanying consolidated financial statements for a definition of Free Cash Flow.

Net Debt and Mandatorily Redeemable Preferred Equity totaled $22.0 billion as of
September 30, 2009 compared to $12.6 billion as of December 31, 2008, due to net
borrowings to fund the Company`s special cash dividend paid in March 2009. Net
debt and mandatorily redeemable preferred equity decreased from $22.4 billion as
of June 30, 2009 driven by Free Cash Flow.

(in millions; unaudited) 9/30/09 12/31/08
Total debt $ 22,168 $ 17,728
Cash and equivalents (506 ) (5,449 )
Net debt(a) 21,662 12,279
Mandatorily redeemable preferred equity 300 300
Net debt and mandatorily redeemable preferred equity $ 21,962 $ 12,579

(a) Net debt is defined as total debt less cash and equivalents.

SUBSCRIBER METRICS

Primary Service Units ("PSUs"), which represent the total of all video,
high-speed data and voice subscribers, increased by 109,000 to 26.3 million.
Double and Triple Play Subscribers increased by 39,000 and 49,000, respectively,
and bundled subscribers totaled 8.3 million, or 56% of total customer
relationships as of September 30, 2009.

(in thousands) Net
6/30/09 Change(a) 9/30/09
Video subscribers 13,048 (84 ) 12,964
Residential high-speed data subscribers 8,757 117 8,874
Commercial high-speed data subscribers 289 4 293
Residential Digital Phone subscribers 4,016 62 4,078
Commercial Digital Phone subscribers 48 10 58
Primary service units 26,158 109 26,267
Digital video subscribers 8,802 8 8,810
Revenue generating units 34,960 117 35,077

Single play subscribers 6,483 (113 ) 6,370
Double play subscribers 4,834 39 4,873
Triple play subscribers 3,335 49 3,384
Customer relationships 14,652 (25 ) 14,627

(a) The net change column reflects subscriber net additions (declines) for each period other than subscriber changes resulting from acquisitions, dispositions or exchanges during any given quarter of cable systems that, in the aggregate, served more than 5,000 video subscribers.

Refer to the Trending Schedules posted on the Company`s website at www.timewarnercable.com/investors for definitions related to the Company`s subscriber metrics.

Non-GAAP Financial Measures

The Company refers to certain financial measures that are not presented in
accordance with U.S. generally accepted accounting principles ("GAAP"),
including Operating Income (Loss) before Depreciation and Amortization, Adjusted
OIBDA and Free Cash Flow. Refer to Note 3 to the accompanying consolidated
financial statements for a discussion of the Company`s use of non-GAAP financial
measures.

About Time Warner Cable

Time Warner Cable is the second-largest cable operator in the U.S., with
technologically advanced, well-clustered systems located in five geographic
areas - New York State (including New York City), the Carolinas, Ohio, southern
California (including Los Angeles) and Texas. Time Warner Cable serves more than
14 million customers who subscribe to one or more of its video, high-speed data
and voice services. Time Warner Cable Business Class offers a suite of phone,
Internet, Ethernet and cable television services to businesses of all sizes.
Time Warner Cable Media Sales, the advertising arm of Time Warner Cable, offers
national, regional and local companies innovative advertising solutions that are
targeted and affordable. More information about the services of Time Warner
Cable is available at www.timewarnercable.com, www.twcbc.com and
www.twcmediasales.com.

Information on Conference Call

Time Warner Cable`s earnings conference call can be heard live at 8:30 am ET on
Thursday, November 5, 2009. To listen to the call, visit
www.timewarnercable.com/investors.

Caution Concerning Forward-Looking Statements

This document includes certain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements are based
on management`s current expectations or beliefs, and are subject to uncertainty
and changes in circumstances. Actual results may vary materially from those
expressed or implied by the statements herein due to changes in economic,
business, competitive, technological, strategic and/or regulatory factors, and
other factors affecting the operations of Time Warner Cable Inc. More detailed
information about these factors may be found in filings by Time Warner Cable
Inc. with the Securities and Exchange Commission, including its most recent
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Time Warner Cable
is under no obligation to, and expressly disclaims any such obligation to,
update or alter its forward-looking statements, whether as a result of new
information, future events, or otherwise.

TIME WARNER CABLE INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)

September 30, December 31,
2009 2008
(recast)
(in millions)
ASSETS
Current assets:
Cash and equivalents $ 506 $ 5,449
Receivables, less allowances of $108 million and $90 million as of September 30, 2009 and December 31, 2008, respectively 646 692
Receivables from affiliated parties - 161
Deferred income tax assets 132 156
Prepaid expenses and other current assets 277 201
Total current assets 1,561 6,659
Investments 901 895
Property, plant and equipment, net 13,543 13,537
Intangible assets subject to amortization, net 332 493
Intangible assets not subject to amortization 24,091 24,094
Goodwill 2,105 2,101
Other assets 153 110
Total assets $ 42,686 $ 47,889

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 293 $ 546
Deferred revenue and subscriber-related liabilities 170 156
Payables to affiliated parties 46 209
Accrued programming expense 715 530
Other current liabilities 1,552 1,432
Total current liabilities 2,776 2,873
Long-term debt 22,168 17,727
Mandatorily redeemable preferred equity membership units issued by a subsidiary 300 300
Deferred income tax liabilities, net 8,645 8,193
Other liabilities 578 522
TWC shareholders` equity:
Class A common stock, $0.01 par value, 0 shares and 300.7 million shares issued and outstanding as of September 30, 2009 and December 31, 2008, respectively - 3
Class B common stock, $0.01 par value, 0 shares and 25.0 million shares issued and outstanding as of September 30, 2009 and December 31, 2008, respectively - -
Common stock, $0.01 par value, 352.4 million shares and 0 shares issued and outstanding as of September 30, 2009 and December 31, 2008, respectively 4 -
Paid-in capital 9,794 19,514
Accumulated other comprehensive loss, net (448 ) (467 )
Accumulated deficit (1,135 ) (1,886 )
Total TWC shareholders` equity 8,215 17,164
Noncontrolling interests 4 1,110
Total equity 8,219 18,274
Total liabilities and equity $ 42,686 $ 47,889

See accompanying notes.

TIME WARNER CABLE INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)

Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
(recast) (recast)
(in millions, except per share data)
Revenues:
Subscription:
Video $ 2,698 $ 2,639 $ 8,071 $ 7,878
High-speed data 1,138 1,056 3,362 3,082
Voice 480 421 1,402 1,184
Total Subscription 4,316 4,116 12,835 12,144
Advertising 182 224 501 654
Total revenues 4,498 4,340 13,336 12,798
Costs and expenses:
Costs of revenues(a) 2,163 2,072 6,423 6,097
Selling, general and administrative(a) 716 706 2,137 2,161
Depreciation 713 700 2,105 2,123
Amortization 64 66 183 196
Restructuring costs 14 8 64 14
(Gain) loss on sale of cable systems - - (2 ) 45
Total costs and expenses 3,670 3,552 10,910 10,636
Operating Income 828 788 2,426 2,162
Interest expense, net (348 ) (229 ) (974 ) (647 )
Other income (expense), net (19 ) 2 (83 ) (1 )
Income before income taxes 461 561 1,369 1,514
Income tax provision (193 ) (226 ) (600 ) (608 )
Net income 268 335 769 906
Less: Net income attributable to noncontrolling interests - (34 ) (21 ) (86 )
Net income attributable to TWC $ 268 $ 301 $ 748 $ 820

Net income attributable to TWC per common share:
Basic $ 0.76 $ 0.92 $ 2.15 $ 2.52
Diluted $ 0.76 $ 0.92 $ 2.14 $ 2.52
Average common shares outstanding:
Basic 352.4 325.7 347.9 325.6
Diluted 354.5 326.1 348.9 325.9

Special cash dividend declared and paid per share of common stock $ - $ - $ 30.81 $ -

(a) Costs of revenues and selling, general and administrative expenses exclude
depreciation.

See accompanying notes.

TIME WARNER CABLE INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)

Nine Months Ended
September 30,
2009 2008
(recast)
(in millions)
OPERATING ACTIVITIES
Net income $ 769 $ 906
Adjustments for noncash and nonoperating items:
Depreciation and amortization 2,288 2,319
Pretax (gain) loss on asset sales (2 ) 36
Loss from equity investments, net of cash distributions 42 4
Deferred income taxes 458 659
Equity-based compensation 77 64
Changes in operating assets and liabilities, net of acquisitions:
Receivables 47 6
Accounts payable and other liabilities 136 (47 )
Other changes (10 ) (83 )
Cash provided by operating activities 3,805 3,864

INVESTING ACTIVITIES
Investments and acquisitions, net of cash acquired and distributions received 6 (525 )
Capital expenditures (2,287 ) (2,582 )
Proceeds from asset sales 9 12
Cash used by investing activities (2,272 ) (3,095 )

FINANCING ACTIVITIES
Borrowings (repayments), net(a) 2,215 (207 )
Borrowings(b) 10,071 5,203
Repayments(b) (7,877 ) (2,817 )
Debt issuance costs (26 ) (87 )
Payment of special cash dividend (10,856 ) -
Other financing activities (3 ) (3 )
Cash provided (used) by financing activities (6,476 ) 2,089

Increase (decrease) in cash and equivalents (4,943 ) 2,858
Cash and equivalents at beginning of period 5,449 232
Cash and equivalents at end of period $ 506 $ 3,090

(a) Borrowings (repayments), net, reflects borrowings under TWC`s commercial paper program with original maturities of three months or less, net of repayments of such borrowings.
(b) Amounts represent borrowings and repayments related to debt instruments with original maturities greater than three months.

See accompanying notes.

TIME WARNER CABLE INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

1.CHANGES IN BASIS OF PRESENTATION

Effective January 1, 2009, Time Warner Cable Inc. (the "Company" or "TWC")
adopted authoritative guidance issued by the Financial Accounting Standards
Board that establishes accounting and reporting standards for a noncontrolling
interest in a subsidiary, including the accounting treatment upon the
deconsolidation of a subsidiary. As required by this guidance, the Company has
recast the presentation of noncontrolling interests in the prior year financial
statements so that they are comparable to those of 2009.

On March 12, 2009, the Company implemented a reverse stock split of all
outstanding and treasury shares of TWC Common Stock at a 1-for-3 ratio. The
Company has recast the presentation of share and per share data in the prior
year financial statements to reflect the reverse stock split.

Certain other reclassifications have been made to the prior year financial
information to conform to the September 30, 2009 presentation.

2.ITEMS AFFECTING COMPARABILITY

The following items affected the comparability of net income attributable to TWC
for the three and nine months ended September 30, 2009 and 2008:

(in millions, except per share data) 3rd Quarter Year-to-Date 9/30
2009 2008 2009 2008
Restructuring costs $ (14 ) $ (8 ) $ (64 ) $ (14 )
Equity award reimbursement obligation to Time Warner(a) (5 ) - (13 ) -
Investment gains - - 3 1
Gain (loss) on sale of cable systems(b) - - 2 (45 )
Amortization adjustment(c) - - 13 -
Separation-related "make-up" equity award costs(d) (4 ) - (6 ) -
Separation-related costs(e) - (5 ) (41 ) (48 )
Impairment of investment in The Reserve Fund`s Primary Fund - - (10 ) -
Pretax impact (23 ) (13 ) (116 ) (106 )
Income tax impact of the above items 9 4 39 36
Income tax impact of certain state tax law changes in California - - (38 ) -
Portion of above items impacting income attributable to noncontrolling interests - 1 1 4
After-tax impact $ (14 ) $ (8 ) $ (114 ) $ (66 )
Impact per basic and diluted common share $ (0.04 ) $ (0.02 ) $ (0.33 ) $ (0.20 )

(a) Pursuant to an agreement with Time Warner Inc. ("Time Warner"), the Company is obligated to reimburse Time Warner for the cost of certain Time Warner equity awards held by TWC employees upon exercise or vesting of such awards. Amounts represent the change in the reimbursement obligation, which fluctuates primarily with the fair value of the underlying equity awards and is recorded in earnings in the period of change.
(b) 2009 amount represents a gain resulting from a post-closing purchase price adjustment related to the fourth quarter 2008 sale of cable systems. 2008 amount represents a noncash impairment loss on the sale of such cable systems.
(c) Amount represents adjustments to reduce excess amortization recorded in prior years.
(d) As a result of the Company`s separation from Time Warner, pursuant to their terms, Time Warner equity awards held by TWC employees were forfeited and/or experienced a reduction in value. Amounts represent costs associated with TWC stock options and restricted stock units granted to TWC employees to offset these forfeitures and/or reduced values.
(e) Amounts consist of direct transaction costs (e.g., legal and professional fees) and debt issuance costs. Direct transaction costs were $28 million for the nine months ended September 30, 2009 and $3 million and $15 million for the three and nine months ended September 30, 2008, respectively. Debt issuance costs were $13 million for the nine months ended September 30, 2009 and $2 million and $33 million for the three and nine months ended September 30, 2008, respectively.

3.USE OF NON-GAAP FINANCIAL MEASURES

Operating Income (Loss) before Depreciation and Amortization is a financial
measure not calculated and presented in accordance with U.S. generally accepted
accounting principles ("GAAP"). The Company defines Operating Income (Loss)
before Depreciation and Amortization as Operating Income (Loss) before
depreciation of tangible assets and amortization of intangible assets. The
Company also evaluates the performance of its business using Operating Income
(Loss) before Depreciation and Amortization excluding the impact of noncash
impairments of goodwill, intangible and fixed assets, as well as gains and
losses on asset sales, merger-related and restructuring costs and costs
associated with equity awards granted to offset the reduction in value as a
result of the Company`s separation from Time Warner of Time Warner equity awards
held by TWC employees ("Separation-related "make-up" equity award costs")
(referred to herein as "Adjusted OIBDA"). Management utilizes Operating Income
(Loss) before Depreciation and Amortization and Adjusted OIBDA, among other
measures, in evaluating the performance of the Company`s business because they
eliminate the uneven effect across its business of considerable amounts of
depreciation of tangible assets and amortization of intangible assets recognized
in business combinations. Additionally, management utilizes Operating Income
(Loss) before Depreciation and Amortization and Adjusted OIBDA because it
believes these measures provide valuable insight into the underlying performance
of the Company`s individual cable systems by removing the effects of items that
are not within the control of local personnel charged with managing these
systems such as net income (loss) attributable to noncontrolling interests,
income tax benefit (provision), other income (expense), net, and interest
expense, net. Similarly, management uses Adjusted OIBDA less Capital
Expenditures to evaluate the performance of its business because it reflects
management`s capital spending decisions. In this regard, Operating Income (Loss)
before Depreciation and Amortization, Adjusted OIBDA and Adjusted OIBDA less
Capital Expenditures are significant components of measures used in the
Company`s annual incentive compensation programs.

A limitation of Operating Income (Loss) before Depreciation and Amortization and
Adjusted OIBDA, however, is that they do not reflect the periodic costs of
certain capitalized tangible and intangible assets used in generating revenues
in the Company`s business. Moreover, Adjusted OIBDA does not reflect gains and
losses on asset sales, any impairment charge related to goodwill, intangible
assets and fixed assets, merger-related and restructuring costs or
Separation-related "make-up" equity award costs. To compensate for this
limitation, management evaluates the investments in such tangible and intangible
assets through other financial measures, such as capital expenditure budget
variances, investment spending levels and return on capital analyses. Another
limitation of these measures is that they do not reflect the significant costs
borne by the Company for income taxes, debt servicing costs, the share of
Operating Income (Loss) before Depreciation and Amortization and Adjusted OIBDA
related to noncontrolling interests, the results of the Company`s equity
investments or other non-operational income or expense. Management compensates
for this limitation through other financial measures such as a review of net
income (loss) attributable to TWC and net income (loss) attributable to TWC per
common share.

Free Cash Flow is a non-GAAP financial measure, as are measures derived from
Free Cash Flow. The Company defines Free Cash Flow as cash provided by operating
activities (as defined under GAAP) plus excess tax benefits from the exercise of
stock options, less cash provided by (used by) discontinued operations, capital
expenditures, cash paid for other intangible assets, partnership distributions
and principal payments on capital leases. Management uses Free Cash Flow to
evaluate the Company`s business. The Company believes this measure is an
important indicator of its liquidity, including its ability to reduce net debt
and make strategic investments, because it reflects the Company`s operating cash
flow after considering the significant capital expenditures required to operate
its business. A limitation of this measure, however, is that it does not reflect
payments made in connection with investments and acquisitions, which reduce
liquidity. To compensate for this limitation, management evaluates such
expenditures through other financial measures such as return on investment
analyses.

Operating Income (Loss) before Depreciation and Amortization, Adjusted OIBDA,
Adjusted OIBDA less Capital Expenditures, Free Cash Flow and Free Cash Flow per
diluted common share should be considered in addition to, not as a substitute
for, the Company`s Operating Income (Loss), net income (loss) attributable to
TWC and various cash flow measures (e.g., cash provided by operating
activities), as well as other measures of financial performance and liquidity
reported in accordance with GAAP, and may not be comparable to similarly titled
measures used by other companies.

Time Warner Cable Inc.
Corporate Communications
Alex Dudley, 212-364-8229
Justin Venech, 212-364-8242
or
Investor Relations
Tom Robey, 212-364-8218
Laraine Mancini, 212-364-8202

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