"Mike, Eoin and Don all bring great strengths and experience to their roles, and I'm delighted to have them on our team as we move toward becoming an independent, public company," said Artie Minson, AOL's Chief Financial Officer. "I'm also thrilled that Ned is returning to AOL to lead our paid services efforts. Ned has a great history with AOL, and I am confident he will contribute significantly to AOL's future growth."

Suffredini joins AOL from Discovery Communications, Inc., where he was Senior Vice President and Treasurer, responsible for capital markets, treasury operations, financial risk management and insurance. He was previously Vice President, Treasury, at Purdue Pharma, L.P., and before that was Treasurer at Sony Corporation of America. Suffredini has also held treasury positions at PepsiCo, Inc. and Revlon, Inc.

Ryan was Vice President, Investor Relations, at IAC, which operates more than 50 leading and diversified Internet businesses. Ryan guided IAC's Investor Relations department through five high-profile spin-offs and oversaw all financial communications. He was previously Director, Capital Markets Intelligence, at Thomson Financial. Ryan officially joins AOL later this month.

Neff joined AOL in 1996 and most recently served as Senior Vice President, Finance, overseeing AOL's advertising operations. Neff previously headed corporate financial planning and analysis, as well as finance for the company's Digital Services Group. He also spent two years as Vice President of Finance and Controller for AOL's international operations, overseeing joint venture operations in Europe, Latin America and Asia, and prior to that served in the company's accounting policy group. Neff began his career in the audit practice of Ernst and Young.

Brody was founder and CEO of ARPUInc., which focuses on enabling a superior advertising and ecommerce experience for consumers, advertisers and publishers. Prior to founding ARPUInc., he worked at AOL as Senior Vice President of AOL's Premium Services unit, where he was responsible for developing and launching new services and building a new API-driven billing system. Earlier in his career, Brody was CFO of LookSmart.

Brody and Ryan will report to Minson. Neff will report to the Audit Committee of the Board of Directors and administratively to Minson. Suffredini will report to AOL's Senior Vice President and Controller, Doug Horne.

On May 28, 2009, Time Warner Inc. announced that its Board of Directors had authorized management to proceed with plans for the complete legal and structural separation of AOL from Time Warner. Following the proposed transaction, AOL would be an independent, publicly traded company. Time Warner has indicated that it aims to complete the proposed transaction around the end of this year.

About AOL

AOL is a leading global Web services company with an extensive suite of brands and offerings and a substantial worldwide audience. AOL's business spans online content, products and services that the company offers to consumers, publishers and advertisers. AOL is focused on attracting and engaging consumers and providing valuable online advertising services on both AOL's owned and operated properties and third-party websites. In addition, AOL operates one of the largest Internet subscription access services in the United States, which serves as a valuable distribution channel for AOL's consumer offerings. AOL LLC is a wholly owned subsidiary of Time Warner Inc.

SOURCE: AOL

AOL 
Pamela Rucker Springs 
703-265-6139 
pamela.springs@corp.aol.com 
or 
Alysia Lew 
212-652-6376 
alysia.lew@corp.aol.com

Here are highlights from Wednesday's Analyst Blog:

Time Warner Tops Zacks Consensus

Despite tough macro-economic conditions, Time Warner Inc. (NYSE: TWX), the global leader in media and entertainment businesses, reported better-than-expected third-quarter 2009 results that topped the Zacks Consensus Estimate.

The quarterly earnings of 61 cents a share beat the Zacks Consensus Estimate of 52 cents, but dropped 6% from 65 cents delivered in the prior-year quarter. On a reported basis, including one-time items, quarterly earnings came in at 55 cents a share, sharply down by 38% from 89 cents posted in the year-ago quarter.

On account of better-than-expected results at its Content Group -- comprising Networks, Filmed Entertainment, Publishing and Corporate segments -- Time Warner boosts its business outlook. The company now expects its full year 2009 earnings to be $2.05 per share, up from $1.98 previously anticipated.

The Fed Stays on Easy Street

The Fed did back off its quantitative easing program slightly. It is done with the program of buying $300 billion of longer-term T-notes, and is continuing its program of buying $1.25 trillion of mortgaged-backed securities. It did, however, slightly reduce its planned purchases of Fannie (NYSE: FNM) and Freddie (NYSE: FRE) debt, from $200 billion down to $175 billion. In the overall context of the quantitative easing program, the reduction is trivial. It is, however, a sign that the program will not be expanded, nor is it likely to be renewed after the current program is completed by the end of the first quarter.

There had been a few Fed types who had been making speeches about the need to bring things back to normal sooner rather than later, but when the rubber hit the road, they are still on board with the program.

Overall, the Fed seems to understand that the weak economy is the overriding problem. Yes, things are getting better, but given the sluggish pace of improvement, this is not the time to be taking away the punch bowl.

This would be in keeping with historical precedent. Following the end of the 2001 recession, the Fed waited 32 months before it started to raise rates, and then it did so at a very gradual 25 basis points at a time. Following the 1991 recession it waited 35 months.

So assuming that the NBER eventually determines that the recession ended in July 2009, history suggests that the Fed will not begin to raise rates until the first quarter of 2012. The last two recessions were far milder than this one, which would argue that the Fed should stay on easy street for even longer this time around.

The problem is that keeping rates so low for so long the last time was a key factor in allowing the housing bubble to form. Still, the balance of risks seems to be on the side of an economic relapse, not of an overheating that causes inflation to soar.

Keeping rates low means that we will have a steep yield curve. A steep yield curve allows banks to make a lot of money, since their economic function is to borrow short term, and lend long term. The idea is that if the curve is kept steep enough long enough, even basket-cases like Citigroup (NYSE: C) and Bank of America (NYSE: BAC) will be come solvent again.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5514.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5516.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4580.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch.

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

SOURCE: Zacks.com

Zacks.com 
Mark Vickery, 312-265-9380 
Web Content Editor 
Visit: www.zacks.com

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 2009 increased 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                          Year-to-Date 9/30
                             Quarter
                             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                                Year-to-Date 9/30
                                                 Quarter
                                                 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                        Year-to-Date 9/30
                                                  Quarter
                                                  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                            Year-to-Date 9/30
                                          Quarter
                                          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                                Year-to-Date 9/30
                                                                    Quarter
                                                                    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         646               692
September 30, 2009 and December 31, 2008, respectively
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       300               300
subsidiary
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          --                3
shares issued and outstanding as of September 30, 2009 and
December 31, 2008, respectively
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           4                 --
issued and outstanding as of September 30, 2009 and December 31,
2008, respectively
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       6                  (525   )
received
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                   Year-to-Date 9/30
                                                                  Quarter
                                                                  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             --         1           1            4
noncontrolling interests
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.

SOURCE: Time Warner Cable Inc.

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

Time Warner Cable reported its advertising revenues fell 19% to $182 million, citing "year-over-year declines in the auto, media and political categories."

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. WeaEUR(TM)re on track to return to our target leverage in the first quarter of 2010."

Write to Chip Brian at cbrian@tradethetrend.com

---------------------------------------------------------------------------------------------

SmarTrend analyzes over 5,000 securities simultaneously throughout the trading day and provides its subscribers with trend change alerts in real time. To get a free trial of our trading calls and maximize your trading results, please visit http://www.TradeTheTrend.com.

Get exclusive, actionable insight into how the market is expected to trend prior to market open with our free morning newsletter. Sign up at: http://www.TradeTheTrend.com/signup.html