**Editor's Note: Click here for a look back at how some of the industry's biggest players fared in Q2.**
Another nice quarter is in the books for tw telecom, which reports a profit of $21 million, up 43.7 percent from the year-ago quarter. It was also up 8.5 percent from the second quarter of 2012.
Colorado-based tw telecom, the CLEC that provides managed services – including Business Ethernet, converged and IP VPN solution to enterprises – says revenue for the third quarter was nearly $369 million. That's up 1.2 percent sequentially and 7.1 percent year over year.
"We delivered ongoing revenue growth and strong modified EBITDA (earnings before interest, taxes, depreciation and amortization) margin as we generated substantial levered free cash flow this quarter," said Larissa Herda, tw telecom's chairman, CEO and president. "We've deployed many new products and features this year to meet our customers' rapidly changing requirements, including recently introducing new Ethernet capabilities and advancing our Intelligent Network. Our product investments are differentiating us in the marketplace as we continue to innovate to deliver faster, better and easier network solutions to serve our customers."
The company had approximately 27,700 customers as of Sept. 30. Churn was down slightly, from 1 percent in both the prior quarter and the year-ago quarter, to 0.9 percent in Q3. tw telecom ended the period with more than 28,000 fiber route miles (of which approximately 22,000 were metro miles).
The company says it continues to expect business fluctuations to impact sequential trends in revenue, margins and cash flow.
tw telecom has been working closely with investment firm Evercore Partners on a potential sale, DealReporter's sources said in early October. They also suggested that CenturyLink and the CLEC "could be near a deal."