Stock Analysis on Net
Stock Analysis on Net

Time Warner Cable Inc. (NYSE:TWC)

$22.49

This company has been moved to the archive! The financial data has not been updated since April 28, 2016.

Common-Size Income Statement
Quarterly Data

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Time Warner Cable Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015 Dec 31, 2014 Sep 30, 2014 Jun 30, 2014 Mar 31, 2014 Dec 31, 2013 Sep 30, 2013 Jun 30, 2013 Mar 31, 2013 Dec 31, 2012 Sep 30, 2012 Jun 30, 2012 Mar 31, 2012 Dec 31, 2011 Sep 30, 2011 Jun 30, 2011 Mar 31, 2011
Revenue
Programming and content
Gross profit
Sales and marketing
Technical operations
Customer care
Other operating
Depreciation
Amortization
Merger-related and restructuring costs
Asset impairments
Operating income
Interest expense, net
Other income (expense), net
Income before income taxes
Income tax provision
Net income
Net income attributable to noncontrolling interests
Net income attributable to TWC shareholders

Based on: 10-Q (reporting date: 2016-03-31), 10-K (reporting date: 2015-12-31), 10-Q (reporting date: 2015-09-30), 10-Q (reporting date: 2015-06-30), 10-Q (reporting date: 2015-03-31), 10-K (reporting date: 2014-12-31), 10-Q (reporting date: 2014-09-30), 10-Q (reporting date: 2014-06-30), 10-Q (reporting date: 2014-03-31), 10-K (reporting date: 2013-12-31), 10-Q (reporting date: 2013-09-30), 10-Q (reporting date: 2013-06-30), 10-Q (reporting date: 2013-03-31), 10-K (reporting date: 2012-12-31), 10-Q (reporting date: 2012-09-30), 10-Q (reporting date: 2012-06-30), 10-Q (reporting date: 2012-03-31), 10-K (reporting date: 2011-12-31), 10-Q (reporting date: 2011-09-30), 10-Q (reporting date: 2011-06-30), 10-Q (reporting date: 2011-03-31).

Revenue and Cost Structure Trends
Revenue remained constant as the basis for analysis, consistently marked at 100% across all periods, enabling clear comparisons of cost and profitability ratios over time.
Programming and content costs as a percentage of revenue showed a significant reduction starting from the first quarter of 2013 compared to prior years, declining from approximately 46-47% to about 22-25%. This notable decrease suggests either a change in revenue recognition, cost structure, or divestiture of certain content assets.
Other operating expenses (excluding those broken down separately) exhibited a decline from around 17% in 2011-2012 to roughly 19-22% in subsequent years, indicating a slight improvement in operational efficiency or changes in cost allocation.
Depreciation remained relatively stable, fluctuating slightly between approximately 13.8% and 15.4%, which points to consistent capital investment and asset base amortization policies over the periods.
Amortization expenses were minor in proportion to revenue, generally stable around 0.5-0.6% after an initial increase in 2012.
Merger-related and restructuring costs were sporadic and fluctuated between 0.12% and 1.43%, with occasional spikes notably in the fourth quarters of 2013 and mid-2015, reflecting episodic restructuring or transaction-related expenses.
An asset impairment charge was recorded in the fourth quarter of 2011 (-1.2%), with no further similar charges in later reporting periods, indicating a one-time adjustment during that time frame.
Profitability Indicators
Gross profit margins, calculated as a percentage of revenue, remained relatively steady within two distinct bands; approximately 53-54% before 2013 and markedly higher, around 75-78%, from 2013 onward. The significant gross margin improvement coincides with the reduction in programming and content costs, suggesting an operational or structural change impacting cost classification or revenue streams.
Operating income margins fluctuated within a moderate range, peaking slightly around 21.5% in mid-2011 and trending downwards to mid-to-high teens in the 2015-2016 period, indicating pressure on operating profitability despite improved gross margins.
The net income margin showed volatility but generally hovered around 7-9%, with peaks reaching over 15% in the third quarter of 2012, aligning with the increase in income before taxes during that period. This volatility reflects the influence of both operating performance and tax or other expense impacts.
Expense Breakdown Analysis
Sales and marketing expenses were only reported from 2013 onwards and consistently ranged from approximately 8.6% to 10.3% of revenue, indicating stable but substantial investments in customer acquisition and retention efforts post-2012.
Technical operations expenses remained stable between roughly 6.5% and 7.4% from 2013 forward, pointing to controlled spending in maintaining technical infrastructure.
Customer care costs, available from 2013 onwards, stayed close to 3.4% to 3.9% of revenue, suggesting steady resource allocation toward customer service functions.
Interest, Income Taxes, and Other Income
Interest expense as a percentage of revenue exhibited a gradual downward trend from around 7.5% in early periods to approximately 5.6% by early 2016, reflecting lower borrowing costs or reduced debt levels over time.
Income tax provision showed variability but generally ranged between 3.7% and 5.8%, with fluctuations likely due to changes in income before taxes and varying effective tax rates.
Other income (expense), net, displayed mostly minor negative or positive values with a notable outlier in the third quarter of 2011 recording 9.25%, which appears anomalous. Apart from this, this line remained near zero, occasionally contributing marginally positive or negative effects on profitability.
Income Before Income Taxes and Net Income
Income before income taxes followed a pattern similar to operating income, showing improvement in the third quarter of 2012 at 22.15% before settling to a lower, consistent range around 11-15% in subsequent years.
Net income attributable to shareholders corresponded closely to the overall net income trends, indicating minimal impact from noncontrolling interests. Net margins peaked in late 2012 and early 2013, reflecting effective operational leverage and tax management during those periods.
Summary
The data reveal a marked shift in cost structure beginning in early 2013, especially in programming and content costs resulting in significantly higher gross margins. Operating income and net income margins experienced fluctuations but remained stable within moderate bands thereafter. Expenses related to sales, technical operations, and customer care showed consistent allocations post-2013, supporting stable operating performance. Declining interest expense percentages suggest improved financing costs or debt management. One-time charges such as asset impairments and merger-related expenses occasionally impacted profitability but were not frequent enough to alter overall trends significantly.