Time Warner Cable

Caution Concerning Forward-Looking Statements

The SEC encourages companies to disclose forward-looking information so that investors can better understand a company’s future prospects and make informed investment decisions. The information on this web site contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, particularly statements anticipating future growth in revenues, Operating Income before Depreciation and Amortization and cash from operations. Words such as “anticipates,” “estimates,” “expects,” “projects,” “intends,” “plans,” “believes” and words and terms of similar substance used in connection with any discussion of future operating or financial performance identify forward-looking statements. These forward-looking statements are based on management’s current expectations and beliefs about future events. As with any projection or forecast, they are inherently susceptible to uncertainty and changes in circumstances, and Time Warner Cable is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements whether as a result of such changes, new information, subsequent events or otherwise.

Various factors could adversely affect the operations, business or financial results of Time Warner Cable in the future and cause Time Warner Cable’s actual results to differ materially from those contained in the forward-looking statements, including those factors discussed in detail in Time Warner Cable’s Annual Report on Form 10-K for the year ended December 31, 2006 filed with the SEC on February 23, 2007 (the “Form 10-K”) and in Time Warner Cable’s other filings made from time to time with the SEC. Copies of Time Warner Cable’s filings with the SEC can be obtained though the Investors area of this web site under “Reports and SEC Filings.”

In addition, Time Warner Cable operates in a highly competitive, consumer and technology-driven and rapidly changing business. This business is affected by government regulation, economic, strategic, political and social conditions, consumer response to new and existing products and services, technological developments and, particularly in view of new technologies, the continued ability to protect and secure any necessary intellectual property rights.  Further, lower than expected valuations associated with Time Warner Cable’s cash flows and revenues may result in the inability to realize the value of recorded intangibles and goodwill.  Additionally, actual results could differ materially from management’s expectations due to changes in such factors as well as the factors discussed in detail in the Form 10-K as well as:

  • more aggressive than expected competition from new technologies and other types of video programming distributors, including incumbent telephone companies, direct broadcast satellite operators, Wi Fi broadband providers and DSL providers;
  • the ability to develop a compelling wireless offering;
  • the ability to integrate the assets acquired in the transactions with Adelphia Communications Corporation and Comcast Corporation in July 2006 (the “Transactions”);
  • the ability to acquire, develop, adopt and exploit new and existing technologies in order to distinguish Time Warner Cable’s services from those provided by competitors;
  • unforeseen difficulties that may be encountered in introducing voice services to new operating areas, including those acquired in the Transactions, such as the ability to meet heightened customer expectation for the reliability of voice services as compared to other services provided;
  • reliance, in part, on growth in new housing in order to achieve incremental growth in the number of new video customers;
  • reliance on network and information systems and other technologies which may be affected by outages, disasters and other issues, such as computer viruses and misappropriation of data;
  • the ability to retain senior executives and attract and retain other qualified employees;
  • the ability to continue to license or enforce the intellectual property rights on which Time Warner Cable’s business depends;
  • reliance on third parties to provide tangible assets such as set top boxes and intangible assets, such as licenses and other agreements establishing intellectual property and video programming rights;
  • the ability to obtain video programming at reasonable prices or to pass video programming cost increases on to customers;
  • Time Warner’s approval right over Time Warner Cable’s ability to incur indebtedness, which may impact Time Warner Cable’s liquidity and the growth of subsidiaries;
  • the ability to service the significant amount of debt and debt like obligations incurred in connection with the Transactions;
  • the ability to refinance existing indebtedness on favorable terms;
  • increases in government regulation of Time Warner Cable’s products and services, including regulation that limits cable operators’ ability to raise video rates or that dictates set top box or other equipment features, functionalities or specifications;
  • increased difficulty in obtaining franchise renewals or the award of franchises or similar grants of rights through state or federal legislation that would allow competitors of cable providers to offer video service on terms substantially more favorable than those afforded existing cable operators (e.g., without the need to obtain local franchise approval or to comply with local franchising regulations as cable operators currently must);
  • a future decision by the FCC or Congress to require cable operators to contribute to the federal universal service fund based on the provision of cable modem service, which could raise the price of cable modem service;
  • the ability to make all necessary capital expenditures in connection with the continued roll out of advanced services across the entire combined company;
  • decreased liquidity in the capital markets, including any reduction in the ability to access either the capital markets for debt securities or bank financings;
  • the failure to meet earnings expectations;
  • the impacts of significant acquisitions, dispositions and other similar transactions;
  • economic slowdowns;
  • the impact of terrorist acts and hostilities; and
  • changes in the Company’s plans, strategies and intentions.

 

 

Last updated: February 28, 2007