Spectrum Management Holding 8-K Time Warner Cable Reports 2011 Second-quarter Results

Exhibit 99.1

TIME WARNER CABLE REPORTS
2011 SECOND-QUARTER RESULTS

NEW YORK, NY, July 28, 2011 —Time Warner Cable Inc. (NYSE: TWC) today reported financial results for its second quarter ended June 30, 2011.

Time Warner Cable Chief Executive Officer Glenn Britt said: “Time Warner Cable continued to perform well in the second quarter, driven by very strong results in business services and higher residential ARPU. We also continued to generate strong free cash flow while still investing in our core business, allowing us to return more than $1 billion to our shareholders.”

FINANCIAL RESULTS

Revenuesfor the second quarter of 2011 increased 4.4% from the second quarter of 2010 to $4.9 billion. Residential services revenues grew 2.5% year-over-year to $4.3 billion, business services revenues increased 34.7% to $361 million, advertising revenues grew 4.2% to $225 million and other revenues increased 5.5% to $58 million.

Residential services revenue growth was driven by increases in high-speed data and voice revenues. The growth in residential high-speed data revenues was the result of growth in high-speed data subscribers and increases in average revenue per subscriber (due to both price increases and a greater percentage of subscribers receiving higher-priced tiers of service). Residential voice revenues increased as a result of an increase in voice subscribers. Residential video revenues were essentially flat year-over-year as price increases and a greater percentage of subscribers receiving higher-priced tiers of service, as well as increased revenues from equipment rental and installation charges and DVR service were offset by a decline in video subscribers and revenues from transactional video-on-demand and premium channels. Business services revenue growth was due primarily to increases in voice and high-speed data subscribers, an increase in cell tower backhaul revenues and the closing of the NaviSite, Inc. acquisition on April 21, 2011, which contributed $26 million of revenue during the second quarter. Advertising revenue growth was primarily driven by a year-over-year increase in revenues from advertising inventory sold on behalf of other video distributors, partially offset by a decline in political advertising revenues.

(in millions; unaudited)	2nd Quarter						Year-to-Date 6/30
	2011		2010		Change		2011		2010		Change
Residential services revenues:
Video	$	2,676	$	2,678		(0.1%)	$	5,337	$	5,316		0.4%
High-speed data		1,115		1,028		8.5%		2,209		2,026		9.0%
Voice		497		476		4.4%		990		943		5.0%
Other		12		13		(7.7%)		23		24		(4.2%)
Total residential services revenues		4,300		4,195		2.5%		8,559		8,309		3.0%
Business services revenues:
Video		70		66		6.1%		139		130		6.9%
High-speed data		177		150		18.0%		344		296		16.2%
Voice		46		29		58.6%		88		55		60.0%
Wholesale transport		39		20		95.0%		71		36		97.2%
Other		29		3	NM			31		5	NM
Total business services revenues		361		268		34.7%		673		522		28.9%
Advertising revenues		225		216		4.2%		422		389		8.5%
Other revenues		58		55		5.5%		117		113		3.5%
Total revenues	$	4,944	$	4,734		4.4%	$	9,771	$	9,333		4.7%

NM—Not meaningful.

Adjusted Operating Income before Depreciation and Amortization (“Adjusted OIBDA”)rose 4.2% over the second quarter of 2010 to $1.8 billion. The increase was driven by revenue growth, partially offset by a 4.6% increase in operating expenses. Operating expenses grew primarily due to higher employee costs, video programming expenses and consulting and professional fees, partially offset by a decrease in voice costs. Employee costs were up 5.1% to $1.0 billion, primarily as a result of compensation increases and higher headcount in business services, including NaviSite. Business services employee costs increased 34.4%. Video programming expenses grew 4.1% to $1.1 billion due to contractual rate increases and increased retransmission consent expense offset, in part, by a decline in video subscribers. Voice costs were down 9.6% to $151 million due to a decrease in delivery costs per subscriber related to the in-sourcing of voice transport, switching and interconnection services, partially offset by an increase in subscribers.

Operating Incomewas up 15.8% over the second quarter of 2010 to $1.1 billion driven by higher Adjusted OIBDA and lower amortization expense.

(in millions; unaudited)	2nd Quarter								Year-to-Date 6/30
	2011			2010			Change		2011			2010			Change
Adjusted OIBDA(a)	$	1,824		$	1,751			4.2%	$	3,555		$	3,422			3.9%
Adjusted OIBDA margin(b)		36.9%			37.0%					36.4%			36.7%
Separation-related “make-up” equity award costs		—			(2	)		(100.0%)		—			(4	)		(100.0%)
Merger-related and restructuring costs		(9	)		(20	)		(55.0%)		(15	)		(31	)		(51.6%)
OIBDA(a)		1,815			1,729			5.0%		3,540			3,387			4.5%
Depreciation		(744	)		(749	)		(0.7%)		(1,488	)		(1,492	)		(0.3%)
Amortization		(8	)		(62	)		(87.1%)		(14	)		(127	)		(89.0%)
Operating Income	$	1,063		$	918			15.8%	$	2,038		$	1,768			15.3%

(a)	Refer to Note 2 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.

2

Adjusted OIBDA less Capital Expendituresfor the first six months of 2011 totaled $2.2 billion, a 12.4% increase over the first six months of 2010, due to higher Adjusted OIBDA and lower capital expenditures.Capital Expenditureswere $1.4 billion in the first six months of 2011, a 7.4% decrease from the first six months of 2010, largely reflecting lower residential capital spending. This decline in residential capital spending was primarily attributable to lower spending on customer premise equipment and upgrades/rebuilds, partially offset by higher support capital and scalable infrastructure spending.

(in millions; unaudited)	2nd Quarter								Year-to-Date 6/30
	2011			2010			Change		2011			2010			Change
Adjusted OIBDA(a)	$	1,824		$	1,751			4.2%	$	3,555		$	3,422			3.9%
Capital expenditures		(700	)		(736	)		(4.9%)		(1,363	)		(1,472	)		(7.4%)
Adjusted OIBDA less Capital Expenditures(a)	$	1,124		$	1,015			10.7%	$	2,192		$	1,950			12.4%

^(a) Refer to Note 2 to the accompanying consolidated financial statements for a definition of Adjusted OIBDA and Adjusted OIBDA less Capital Expenditures.

Net Income Attributable to TWC Shareholderswas $420 million, or $1.25 per basic common share and $1.24 per diluted common share, for the second quarter of 2011 compared to $342 million, or $0.96 per basic and $0.95 per diluted common share, for the second quarter of 2010.

(in millions, except per share data; unaudited)	2nd Quarter							Year-to-Date 6/30
	2011		2010		Change			2011		2010		Change
Net income attributable to
TWC shareholders	$	420	$	342		22.8	%	$	745	$	556		34.0	%
Net income per common share attributable to TWC common shareholders:
Basic	$	1.25	$	0.96		30.2	%	$	2.18	$	1.56		39.7	%
Diluted	$	1.24	$	0.95		30.5	%	$	2.16	$	1.55		39.4	%

Refer to Note 1 to the accompanying consolidated financial statements for certain items affecting the comparability of net income attributable to TWC shareholders.

Free Cash Flowfor the first six months of 2011 increased 42.4% to $1.7 billion from $1.2 billion in the first six months of 2010, due mainly to higher cash provided by operating activities and lower capital expenditures.Cash Provided by Operating Activitiesfor the first six months of 2011 was $3.1 billion, a 14.4% increase from $2.7 billion in the first six months of 2010. This increase was driven by a change in working capital (primarily net income tax refunds related to bonus depreciation, partially offset by an increase in net interest payments) and higher Adjusted OIBDA.

(in millions; unaudited)	2nd Quarter								Year-to-Date 6/30
	2011			2010			Change		2011			2010			Change
Cash provided by operating activities	$	1,510		$	1,306			15.6%	$	3,080		$	2,692			14.4%
Add: Excess tax benefit from exercise of stock options		12			8			50.0%		41			13			215.4%
Less:
Capital expenditures		(700	)		(736	)		(4.9%)		(1,363	)		(1,472	)		(7.4%)
Cash paid for other intangible assets		(6	)		(6	)		—		(14	)		(9	)		55.6%
Other		(1	)		(1	)		—		(2	)		(1	)		100.0%
Free Cash Flow(a)	$	815		$	571			42.7%	$	1,742		$	1,223			42.4%

^(a) Refer to Note 2 to the accompanying consolidated financial statements for a definition of Free Cash Flow.

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Net Debt and Mandatorily Redeemable Preferred Equitytotaled $21.0 billion as of June 30, 2011 compared to $20.4 billion as of December 31, 2010, as the cash used for share repurchases, dividend payments and the acquisition of NaviSite was greater than Free Cash Flow.

(in millions; unaudited)	6/30/11			12/31/10
Long-term debt	$	23,922		$	23,121
Debt due within one year		261			—
Total debt		24,183			23,121
Cash and equivalents		(3,510	)		(3,047	)
Net debt(a)		20,673			20,074
Mandatorily redeemable preferred equity		300			300
Net debt and mandatorily redeemable preferred equity	$	20,973		$	20,374

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

RETURN OF CAPITAL

Time Warner Cable returned over $1 billion to shareholders during the quarter. Share repurchases during the second quarter of 2011 totaled $863 million, or 11.5 million shares of common stock. As of June 30, 2011, approximately $1.8 billion remained under the Company’s share repurchase authorization. Time Warner Cable also paid regular dividends of $163 million during the second quarter of 2011.

SUBSCRIBER METRICS

(in thousands)			Net
			Additions
	3/31/11		(Declines)			6/30/11
Residential services subscribers:
Video(a)		12,191		(130	)		12,067
High-speed data(a)		9,646		54			9,703
Voice		4,457		32			4,489
Primary service units(a)		26,294		(44	)		26,259
Business services subscribers:
Video		166		2			168
High-speed data		346		13			359
Voice		123		13			136
Primary service units		635		28			663
Total primary service units(a)		26,929		(16	)		26,922
Single play subscribers(a)		5,876		(91	)		5,788
Double play subscribers(a)		4,883		(21	)		4,865
Triple play subscribers		3,763		38			3,801
Customer relationships(a)		14,522		(74	)		14,454

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

^(a) During the second quarter of 2011, the Company acquired cable systems, resulting in an increase of 6,000 residential services video subscribers, 3,000 residential services high-speed data subscribers, 9,000 residential services and total primary service units, 3,000 single play subscribers, 3,000 double play subscribers and 6,000 customer relationships. The acquired subscribers are reflected in the Company’s subscriber numbers as of June 30, 2011; however, they are not reflected in net additions (declines) for the second quarter of 2011.

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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 OIBDA, Adjusted OIBDA, Adjusted OIBDA less Capital Expenditures and Free Cash Flow. Refer to Note 2 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 Inc. (NYSE: TWC) is among the largest providers of video, high-speed data and voice services in the United States, connecting more than 14 million customers to entertainment, information and each other. Time Warner Cable Business Class offers data, video and voice services to businesses of all sizes, cell tower backhaul services to wireless carriers and, through its NaviSite subsidiary, enterprise-class hosting, managed application, messaging and cloud services. Time Warner Cable Media, the advertising arm of Time Warner Cable, offers national, regional and local companies innovative advertising solutions. More information about the services of Time Warner Cable is available atwww.timewarnercable.com,www.twcbc.com,www.navisite.com, andwww.twcmedia.com.

Additional details on financial and subscriber metrics are included in the Trending Schedules posted on the Company’s Investor Relations website atwww.timewarnercable.com/investors.

Information on Conference Call

Time Warner Cable’s earnings conference call can be heard live at 8:30 am ET on Thursday, July 28, 2011. To listen to the call, visitwww.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.

Contacts:
Corporate Communications	Investor Relations
Alex Dudley     (212) 364-8229	Tom Robey       (212) 364-8218
Justin Venech (212) 364-8242	Laraine Mancini (212) 364-8202

# # #

5

TIME WARNER CABLE INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)

	June 30,			December 31,
	2011			2010
	(in millions)
ASSETS
Current assets:
Cash and equivalents	$	3,510		$	3,047
Receivables, less allowances of $86 million and $74 million as of June 30, 2011 and December 31, 2010, respectively		704			718
Deferred income tax assets		147			150
Other current assets		170			425
Total current assets		4,531			4,340
Investments		809			866
Property, plant and equipment, net		13,583			13,873
Intangible assets subject to amortization, net		188			132
Intangible assets not subject to amortization		24,100			24,091
Goodwill		2,233			2,091
Other assets		460			429
Total assets	$	45,904		$	45,822
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	300		$	529
Deferred revenue and subscriber-related liabilities		177			163
Accrued programming expense		827			765
Current maturities of long-term debt		261			—
Other current liabilities		1,576			1,629
Total current liabilities		3,141			3,086
Long-term debt		23,922			23,121
Mandatorily redeemable preferred equity issued by a subsidiary		300			300
Deferred income tax liabilities, net		9,981			9,637
Other liabilities		511			461
TWC shareholders’ equity:
Common stock, $0.01 par value, 328.3 million and 348.3 million shares issued and outstanding as of June 30, 2011 and December 31, 2010, respectively		3			3
Additional paid-in capital		8,628			9,444
Accumulated other comprehensive loss, net		(317	)		(291	)
Retained earnings (accumulated deficit)		(273	)		54
Total TWC shareholders’ equity		8,041			9,210
Noncontrolling interests		8			7
Total equity		8,049			9,217
Total liabilities and equity	$	45,904		$	45,822

See accompanying notes.

Certain reclassifications have been made to the prior year financial information to conform to the current period presentation.

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

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
	(in millions, except per share data)
Revenues	$	4,944		$	4,734		$	9,771		$	9,333
Costs and expenses:
Costs of revenues(a)		2,297			2,205			4,569			4,384
Selling, general and administrative(a)		823			780			1,647			1,531
Depreciation		744			749			1,488			1,492
Amortization		8			62			14			127
Merger-related and restructuring costs		9			20			15			31
Total costs and expenses		3,881			3,816			7,733			7,565
Operating Income		1,063			918			2,038			1,768
Interest expense, net		(366	)		(341	)		(729	)		(688	)
Other expense, net		(32	)		(18	)		(62	)		(33	)
Income before income taxes		665			559			1,247			1,047
Income tax provision		(244	)		(217	)		(500	)		(490	)
Net income		421			342			747			557
Less: Net income attributable to noncontrolling interests		(1	)		—			(2	)		(1	)
Net income attributable to TWC shareholders	$	420		$	342		$	745		$	556
Net income per common share attributable to TWC common shareholders:
Basic	$	1.25		$	0.96		$	2.18		$	1.56
Diluted	$	1.24		$	0.95		$	2.16		$	1.55
Average common shares outstanding:
Basic		334.0			354.8			338.7			353.9
Diluted		339.6			360.1			344.6			358.5
Cash dividends declared per share of common stock	$	0.48		$	0.40		$	0.96		$	0.80

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

See accompanying notes.

Certain reclassifications have been made to the prior year financial information to conform to the current period presentation.

7

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

	Six Months Ended
	June 30,
	2011			2010
	(in millions)
OPERATING ACTIVITIES
Net income	$	747		$	557
Adjustments for noncash and nonoperating items:
Depreciation		1,488			1,492
Amortization		14			127
Loss from equity investments, net of cash distributions		65			48
Deferred income taxes		391			193
Equity-based compensation expense		65			61
Excess tax benefit from equity-based compensation		(41	)		(13	)
Changes in operating assets and liabilities, net of acquisitions and dispositions:
Receivables		39			2
Accounts payable and other liabilities		30			109
Other changes		282			116
Cash provided by operating activities		3,080			2,692
INVESTING ACTIVITIES
Acquisitions and investments, net of cash acquired and distributions received		(303	)		9
Capital expenditures		(1,363	)		(1,472	)
Other investing activities		18			6
Cash used by investing activities		(1,648	)		(1,457	)
FINANCING ACTIVITIES
Borrowings (repayments), net(a)		—			(1,261	)
Borrowings(b)		1,009			—
Repayments(b)		(44	)		—
Debt issuance costs		(8	)		—
Proceeds from exercise of stock options		98			74
Excess tax benefit from equity-based compensation		41			13
Dividends paid		(330	)		(288	)
Repurchases of common stock		(1,691	)		—
Other financing activities		(44	)		(7	)
Cash used by financing activities		(969	)		(1,469	)
Increase (decrease) in cash and equivalents		463			(234	)
Cash and equivalents at beginning of period		3,047			1,048
Cash and equivalents at end of period	$	3,510		$	814

(a)	Borrowings (repayments), net, reflects borrowings under the Company’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.

Certain reclassifications have been made to the prior year financial information to conform to the current period presentation.

8

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

1.  ITEMS AFFECTING COMPARABILITY

     The following items affected the comparability of net income attributable to TWC shareholders for the three and six months ended June 30, 2011 and 2010:

(in millions, except per share data)	2nd Quarter						Year-to-Date 6/30
	2011			2010			2011			2010
Merger-related and restructuring costs	$	(9	)	$	(20	)	$	(15	)	$	(31	)
Gain (loss) on equity award reimbursement obligation to Time Warner(a)		—			3			(5	)		7
Separation-related “make-up” equity award costs(b)		—			(2	)		—			(4	)
Pretax impact		(9	)		(19	)		(20	)		(28	)
Income tax impact of the above items		4			9			8			12
Income tax impact of domestic production activities deduction		15			—			15			—
Income tax impact of expired Time Warner stock options, net(c)		8			2			(12	)		(70	)
After-tax impact	$	18		$	(8	)	$	(9	)	$	(86	)
Impact per basic and diluted common share	$	0.05		$	(0.02	)	$	(0.03	)	$	(0.24	)

(a)	Pursuant to an agreement with Time Warner Inc. (“Time Warner”), Time Warner Cable Inc. (“TWC” or 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)	As a result of the Company’s separation (the “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 as of the date of the Separation. Amounts represent costs associated with TWC stock options and restricted stock units granted to TWC employees during the second quarter of 2009 to offset these forfeitures and/or reduced values.
(c)	Amounts represent the impacts of the reversal of deferred income tax assets associated with Time Warner stock option awards held by TWC employees, net of excess tax benefits realized upon the exercise of TWC stock options or vesting of TWC restricted stock units.

2. USE OF NON-GAAP FINANCIAL MEASURES

       In discussing its performance, the Company may use certain measures that are not calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”). These measures include OIBDA, Adjusted OIBDA, Adjusted OIBDA less Capital Expenditures and Free Cash Flow, which the Company defines as follows:

• OIBDA(Operating Income before Depreciation and Amortization) means Operating Income before depreciation of tangible assets and amortization of intangible assets.

• Adjusted OIBDAmeans OIBDA excluding the impact, if any, of noncash impairments of goodwill, intangible and fixed assets; gains and losses on asset sales; merger-related and restructuring costs; and costs associated with certain equity awards granted to employees to offset value lost as a result of the Separation.

• Adjusted OIBDA less Capital Expendituresmeans Adjusted OIBDA minus capital expenditures.

• Free Cash Flowmeans cash provided by operating activities (as defined under GAAP) excluding the impact, if any, of cash provided or used by discontinued operations, plus any excess tax benefit from equity-based compensation, less (i) capital expenditures, (ii) cash paid for other intangible assets

9

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

(excluding those associated with business combinations), (iii) partnership distributions to third parties and (iv) principal payments on capital leases.

     Management uses OIBDA and Adjusted OIBDA, among other measures, in evaluating the performance of the Company’s business because they eliminate the effects of (1) considerable amounts of noncash depreciation and amortization and (2) items not within the control of the Company’s operations managers (such as net income attributable to noncontrolling interests, income tax provision, other income (expense), net, and interest expense, net). Adjusted OIBDA further eliminates the effects of certain noncash items identified in the definition of Adjusted OIBDA above. Adjusted OIBDA less Capital Expenditures also allows management to evaluate performance including the effect of capital spending decisions. Adjusted OIBDA and Adjusted OIBDA less Capital Expenditures are also significant performance measures used in the Company’s annual incentive compensation programs. Management believes that Free Cash Flow is an important indicator of the Company’s liquidity after the payment of cash taxes, interest and other cash items, including its ability to reduce net debt, pay dividends, repurchase common stock and make strategic investments. In addition, all of these measures are commonly used by analysts, investors and others in evaluating the Company’s performance and liquidity.

     These measures have inherent limitations. For example, OIBDA and Adjusted OIBDA do not reflect capital expenditures or the periodic costs of certain capitalized assets used in generating revenues. To compensate for such limitations, management evaluates performance through Adjusted OIBDA less Capital Expenditures and Free Cash Flow, which reflect capital expenditure decisions, and net income attributable to TWC shareholders, which reflects the periodic costs of capitalized assets. Adjusted OIBDA and Adjusted OIBDA less Capital Expenditures do not reflect any of the items noted as exclusions in the definition of Adjusted OIBDA above. To compensate for these limitations, management evaluates performance through OIBDA and net income attributable to TWC shareholders, which do reflect such items. OIBDA, Adjusted OIBDA and Adjusted OIBDA less Capital Expenditures also fail to reflect the significant costs borne by the Company for income taxes and debt servicing costs, the share of OIBDA, Adjusted OIBDA and Adjusted OIBDA less Capital Expenditures attributable to noncontrolling interests, the results of the Company’s equity investments and other non-operational income or expense. Management compensates for these limitations by using other analytics such as a review of net income attributable to TWC shareholders. Free Cash Flow, a liquidity measure, does not reflect payments made in connection with investments and acquisitions, which reduce liquidity. To compensate for this limitation, management evaluates such investments and acquisitions through other measures such as return on investment analyses.

     These non-GAAP measures should be considered in addition to, not as substitutes for, the Company’s Operating Income, net income attributable to TWC shareholders 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.

10