Exhibit 99.1
May 7, 2003
John Lowber, (907) 868-5628; jlowber@gci.com
Bruce Broquet, (907) 868-6660; bbroquet@gci.com
David Morris, (907) 265-5396; dmorris@gci.com
FOR IMMEDIATE RELEASE
GCI REPORTS DETAILED FIRST QUARTER 2002 FINANCIAL RESULTS
ANCHORAGE, AK -- GCI (NASDAQ:GNCMA) today reported its detailed first
quarter 2003 results. For the first quarter of 2003, the company recorded net
income of $2.6 million or $0.04 per share on a diluted basis, after the
cumulative effect of a change in accounting principle of $0.5 million or $(0.01)
per share on a diluted basis, net of income tax benefit. The first quarter 2003
net income compares to net income of $2.2 million or $0.03 per share for the
first quarter of 2002.
Revenues totaled $92.8 million for the first quarter of 2003, an increase
of 5.2 percent as compared to $88.2 million in the first quarter of 2002.
Earnings before interest, taxes, depreciation, amortization and accretion
(EBITDA) increased to $28.9 million for the first quarter of 2003, an increase
of $3.8 million or 15.1 percent when compared to first quarter 2002 EBITDA of
$25.1 million. Revenues for the first quarter increased sequentially 0.5 percent
to $92.8 million as compared to revenues of $92.3 million in the fourth quarter
of 2002. GCI's first quarter EBITDA of $28.9 million compares to EBITDA of $28.1
million in the fourth quarter of 2002. The first quarter EBITDA of $28.9 million
includes a net $1.9 million refund in 2003 from a local exchange carrier for
access services rendered in previous years. GCI's first quarter 2003 EBITDA of
$28.9 million exceeded guidance of $25.1 million to $28.1 million.
The company's local services business added 3,000 access lines during the
first quarter and now serves 99,000 access lines, an estimated 20 percent share
of the total access line market in Alaska. GCI's statewide Internet platform
remained steady at approximately 71,600 customers. More than 38,600 Internet
customers are using GCI cable modem service, an increase of 2,400 over the
fourth quarter of 2002. GCI cable television services now pass 198,380 homes and
serve 136,283 basic subscribers. Basic subscribers increased sequentially by 228
subscribers from the fourth quarter of 2002. Digital revenues for the first
quarter of 2003 are up 18.8% sequentially when compared to the fourth quarter of
2002. GCI serves 30,200 digital customers in Anchorage, Fairbanks, Juneau and
Kenai.
"The results of the first quarter contained no surprises and our
expectations for the year remain unchanged," said Ron Duncan, GCI president. "In
the most challenging environment ever faced by the telecommunications industry
GCI continues to deliver steady growth. We have now completed a major amendment
to our senior credit facility which extends the term of the facility and
increases our flexibility."
"On a percentage basis growth for 2003 will likely be less than previous
years. However our continued focus on our customers and the careful investment
of new capital should enable us to accelerate growth in 2004. Our internal goal
is to grow run rate cash flow to $150 million before the end of 2005 and I
believe we are on track to do so."
Highlights:
- Consolidated revenues increased 5.2 percent to $92.8 million for the first
quarter of 2003 as compared to $88.2 million in 2002. First quarter 2003
revenues increased approximately 0.5 percent sequentially over revenues of
$92.3 million in the fourth quarter of 2002.
- Consolidated EBITDA increased 15.1 percent to $28.9 million in the first
quarter 2003 as compared to $25.1 million in 2002. Consolidated first
quarter EBITDA of $28.9 million increased $0.8 million sequentially, an
increase of 2.8 percent, from $28.1 million for the fourth quarter of 2002.
First quarter 2003 EBITDA of $28.9 million includes a net $1.9 million
refund in 2003 from a local exchange carrier for access services rendered
in previous years.
- Broadband, private line and other data revenues increased 9.8 percent to
$14.6 million during the first quarter of 2003 as compared to $13.3 million
in the same period of 2002.
- GCI had approximately 99,000 local service access lines in service at the
end of the first quarter 2003 representing an increase of 3,000 access
lines over the fourth quarter or an annualized sequential growth rate of
12.5 percent. The company estimates it has an approximate 20 percent share
of the total access line market in Alaska. Approximately 87 percent of
GCI's access lines are provisioned on its own facilities or on resold local
loops.
- GCI's statewide Internet platform remained steady at approximately 71,600
customers.
- GCI provides cable modem Internet access in the Anchorage, Fairbanks,
Juneau, Valdez, Sitka, Nome, Seward, Kenai, Soldotna, Wasilla, Cordova,
Petersburg, Wrangell, Homer, Bethel and Kodiak. The company had more than
38,600 cable modem customers at the end of the first quarter 2003, as
compared to 30,000 at the end of the first quarter of 2002. We believe
GCI's cable modem penetration rate is one of the highest in the nation.
More than 96 percent of GCI's cable customers are able to receive cable
modem service.
- During the three months ending March 31, 2003 we decreased our capital
expenditures for all of our product lines as compared to the same period in
2002. The decrease was due to capital expenditure limitations required by
our Senior Facility, which we closed on November 1, 2002. In April 2003 we
amended our Senior Facility agreement which, among other items, increases
the amount we may incur for capital expenditures.
- GCI estimates that second quarter revenues will total approximately $92-95
million and EBITDA is expected to exceed $28.9 million.
- GCI will discuss further first quarter highlights and provide additional
non- material commentary during its Investor and Analyst Conference call on
Thursday, May 8 at 2:00 pm EDT. More information about the call can be
found at www.gci.com, click on "Investors".
Long Distance Results
Long distance and related revenues for the first quarter of 2003 increased
0.5 percent to $56.3 million as compared to $56.0 million for the first quarter
of 2002. For the first quarter of 2003 long distance EBITDA totaled $18.6
million as compared to $17.0 million in the first quarter of 2002, an increase
of 9.4 percent over the prior year. Revenue growth in broadband, private line
and dedicated data services revenues, product sales, managed services and long
haul fiber lease revenues offset a decrease in switched minutes revenues. EBITDA
growth for the first quarter of 2003 is primarily attributable to a net $1.9
million refund in 2003 from a local exchange carrier for access services
rendered in previous years.
Long distance revenues of $56.3 million for the first quarter of 2003 are
relatively unchanged from the fourth quarter of 2002. Long distance EBITDA of
$18.6 million for the first quarter of 2003 increased 3.3 percent from $18.0
million in the fourth quarter of 2002. The sequential increase in EBITDA is
primarily attributable to the previously mentioned net $1.9 million
non-recurring refund in 2003.
Total minutes-of-use was down 3.5 percent in the first quarter of 2003 as
compared to the first quarter of 2002 and 1.8 percent sequentially from the
fourth quarter of 2002.
Revenues from broadband, private line and other data services increased 9.8
percent to $14.6 million during the first quarter of 2003 as compared to $13.3
million in the same period of 2002 and were up 2.1 percent from $14.3 million in
the fourth quarter of 2002. The increase in revenue results from growing demand
for data services by Internet service providers, commercial and governmental
customers and others, and delivery of broadband services into rural Alaska.
The total number of billed long distance customers decreased by 0.9 percent
from the fourth quarter of 2002.
Cable Television Results
Cable television revenues for the first quarter increased 9.9 percent to
$23.4 million from $21.3 million in the first quarter of 2002, and were up
slightly from the fourth quarter of 2002. Sequential revenues were flat due
primarily to strong political insertion ad sales for the fourth quarter of 2002.
EBITDA increased 12.8 percent to $10.6 million from $9.4 million in the first
quarter of 2002, and increased 1.9 percent from the fourth quarter of 2002. The
increase in revenues and EBITDA year-over-year is due, in part, to the increase
in basic subscribers and more sales of higher margin products such as digital
television and cable modem services.
Gross margins as a percentage of revenues are relatively unchanged
year-over-year and down 226 basis points sequentially. The decline in gross
margin sequentially was due primarily to strong political insertion ad sales in
the fourth quarter and first quarter programming cost increases. The growth rate
in higher value products such as digital cable service and cable modems is
expected to help mitigate the margin effects of increasing programming and
copyright costs.
As of March 31, 2003, the company's cable television operations passed
198,380 homes and served 136,283 basic subscribers (112,251 equivalent basic
subscribers). Average revenue per equivalent basic subscriber increased 8.8
percent to $69.49 for the first quarter of 2003 as compared to $63.88 for the
first quarter of 2002, and was up slightly from $69.38 from the fourth quarter
of 2002. The company added 228 basic subscribers to its system during the first
quarter.
The company offers digital cable television service in Anchorage,
Fairbanks, Juneau, Kenai and Soldotna. GCI served 30,200 digital customers at
the end of the first quarter of 2003.
In October 2002 we, along with the other largest publicly traded multiple
system operators signed a pledge to support and adhere to new voluntary
reporting guidelines on common operating statistics to provide investors and
others with a better understanding of our operations. The operating statistics
below include capital expenditures and customer information from our cable
television, cable telephony and cable modem services. These statistics do not
include capital expenditures or customer relationships for our long distance,
local access services and Internet services.
Our capital expenditures by standard reporting category for the three
months ending March 31, 2003 and 2002 follows (amounts in thousands):
2003 2002
------- -------
Customer premise equipment("CPE") $ 1,276 $ 1,333
Commercial 68 176
Scalable infrastructure 135 1,131
Line extensions 88 124
Upgrade/rebuild 72 1,286
Support capital 77 2,358
------- -------
$ 1,716 $ 6,408
------- -------
The standardized definition of a customer relationship is the number of
customers that receive at least one level of service, encompassing voice, video,
and data services, without regard to which services customers purchase. At March
31, 2003 and 2002 our cable business had 124,007 and 122,273 customer
relationships, respectively.
The standardized definition of a revenue generating unit is the sum of all
primary analog video, digital video, high-speed data, and telephony customers,
not counting additional outlets. At March 31, 2003 and 2002 our cable business
had 300,421 and 289,206 revenue generating units, respectively.
Local Telephone Results
Local telephone service revenues for the first quarter increased 15.1
percent to $8.4 million as compared to $7.3 million in the first quarter of
2002, and decreased 2.3 percent sequentially from $8.6 million in the fourth
quarter of 2002. The decrease in sequential local service revenues is
attributable to a reallocation of pooled access revenues from intrastate long
distance carriers, including GCI.
Local services generated a $1.2 million EBITDA loss for the first quarter,
an improvement of $0.1 million over the first quarter of 2002. The first quarter
EBITDA loss of $1.2 million compares to $1.1 million of reported EBITDA loss in
the fourth quarter of 2002. If the local telephone business was given credit for
approximately $1.8 million in access cost savings on calls placed by GCI long
distance customers who are also GCI local customers, the company's local
telephone business would have reported positive EBITDA. GCI's local telephone
business has been generating positive cash flow on a stand-alone basis for
several quarters.
GCI provided local service for approximately 99,000 access lines at the end
of the first quarter of 2003, an increase of 3,000 access lines or 3.1 percent
from the 96,000 access lines in service at the end of the fourth quarter of
2002. The company estimates it has attained a 20 percent share of the total
access line market in Alaska.
Internet Access Results
As of March 31, 2003 GCI's statewide Internet platform customer count
remained relatively unchanged at approximately 71,600 customers. Internet access
revenues for the first quarter of 2003 totaled $4.6 million, an increase of 27.8
percent year-over-year and 9.5 percent sequentially when compared to first
quarter 2002 revenues of $3.6 million and fourth quarter 2002 revenues of $4.2
million. The increase in Internet access revenues is attributed to existing
subscribers adding additional features and services including cable modem
service.
The first quarter EBITDA of $1.0 million is an improvement of $1.0 million
over the EBITDA of $0.0 million in the first quarter of 2002 and an improvement
of $0.2 million over the EBITDA of $0.8 million in the fourth quarter of 2002.
Internet access results continue to improve, reflecting increasing economies of
scale and operating cost controls.
During the first quarter of 2003 GCI began offering a new cable modem
service called LiteSpeed as an alternative product to our dial-up Internet
service and our HyperNet 360/64 K cable modem service priced at $39.99 per month
to GCI long distance customers. LiteSpeed is a 64/32 K transfer rate Internet
service offered at $24.99 per month to GCI long distance customers. HyperNet and
LiteSpeed are priced at $54.99 and $39.99 per month, respectively, to customers
who do not take our long distance service.
GCI began offering Internet access services during 1998 and its dial-up
Internet service is offered in most major Alaska markets. Due to the completion
of major cable plant upgrades, GCI can now offer cable modem service to 96
percent of its cable entertainment subscribers. GCI is now providing cable modem
Internet access in the Anchorage, Fairbanks, Juneau, Valdez, Sitka, Nome,
Seward, Kenai, Soldotna, Wasilla, Cordova, Petersburg, Wrangell, Homer, Bethel
and Kodiak. The company had 38,600 cable modem customers at the end of the first
quarter of 2003, an increase of 8,600 customers when compared to the first
quarter of 2002. We believe GCI's cable modem penetration rate is one of the
highest in the nation. When expansion plans are completed almost all GCI cable
television customers will be able to receive cable modem service. GCI plans to
offer high speed Internet service to substantially all communities it serves by
2004.
The foregoing contains forward-looking statements regarding the company's
expected results which are based on management's expectations as well as on a
number of assumptions concerning future events. Actual results might differ
materially from those projected in the forward looking statements due to
uncertainties and other factors, many of which are outside GCI's control.
Additional information concerning factors that could cause actual results to
differ materially from those in the forward looking statements is contained in
GCI's cautionary statements sections of Form 10K and 10-Q filed with the
Securities and Exchange Commission.
Based on revenues GCI is the largest Alaska-based and operated integrated
telecommunications provider and provides local, wireless, and long distance
telephone, cable television, Internet and data communication services throughout
Alaska. More information about the company can be found at www.gci.com.
# # #
A CONFERENCE CALL TO DISCUSS OPERATING RESULTS WILL TAKE PLACE ON THURSDAY, MAY
8, 2003 FROM 2 P.M. TO 3 P.M. (EASTERN TIME). SENIOR MANAGEMENT WILL CONDUCT THE
BRIEFING.
TO ACCESS THE BRIEFING ON MAY 8, CALL THE WORLDCOM CONFERENCE OPERATOR BETWEEN
1:50 P.M. AND 2 P.M. (EASTERN) AT 800-779-0488. (INTERNATIONAL CALLERS SHOULD
DIAL 630 395-0017). IDENTIFY YOUR CALL AS "GCI." CALLERS WILL BE PLACED ON MUSIC
HOLD UNTIL THE BRIEFING COMMENCES. AFTER THE DIRECT BY GCI, CALLERS MAY ASK
QUESTIONS VIA THE CONFERENCE OPERATOR.
TO ACCESS THE CALL ONLINE VIA NET CONFERENCE, LOG ON TO WWW.GCI.COM AND FOLLOW
THE INSTRUCTIONS. THE CALL WILL BE ARCHIVED FOR TWO WEEKS.
BEGINNING AT 4:00 P.M. (EASTERN) ON MAY 8, A REBROADCAST OF THE BRIEFING WILL BE
AVAILABLE FOR 72-HOURS BY DIALING 800-234-2079, ACCESS CODE 7461 (INTERNATIONAL
CALLERS SHOULD DIAL 402-220-9687). CALLERS MAY UTILIZE THE FOLLOWING OPTIONS
DURING THE REBROADCAST.
- - PRESS "7" TO REWIND THE CALL 30 SECONDS.
- - PRESS "8" TO PAUSE THE CALL.
- - PRESS "9" TO FAST-FORWARD THE CALL 30 SECONDS.
THIS PRESS RELEASE WILL APPEAR IN THE INVESTOR SECTION OF THE COMPANY'S WEBSITE
AT WWW.GCI.COM.
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, December 31,
Assets 2003 2002
- ----------------------------------------------------------------------------------- ------------------ ------------------
(Amounts in thousands)
Current assets:
Cash and cash equivalents $ 18,173 11,940
------------------ ------------------
Receivables:
Trade 58,717 63,111
Employee 318 391
Other 2,493 3,093
------------------ ------------------
61,528 66,595
Less allowance for doubtful receivables 13,929 14,010
------------------ ------------------
Net receivables 47,599 52,585
------------------ ------------------
Deferred income taxes, net 8,875 8,509
Prepaid and other current assets 8,541 9,171
Inventories 1,088 400
Property held for sale 1,037 1,037
Notes receivable with related parties 775 697
------------------ ------------------
Total current assets 86,088 84,339
------------------ ------------------
Property and equipment in service, net of depreciation 378,995 381,394
Construction in progress 13,190 16,958
------------------ ------------------
Net property and equipment 392,185 398,352
------------------ ------------------
Cable certificates, net of amortization of $26,857 and $26,884 at March 31,
2003 and December 31, 2002, respectively 191,159 191,132
Goodwill, net of amortization of $7,200 at March 31, 2003 and
December 31, 2002 43,284 41,972
Other intangible assets, net of amortization of $1,178 and $1,848
at March 31, 2003 and December 31, 2002, respectively 3,513 3,460
Deferred loan and senior notes costs, net of amortization of $5,374 and
$4,110 at March 31, 2003 and December 31, 2002, respectively 8,900 9,961
Notes receivable with related parties 5,184 5,142
Other assets, at cost, net of amortization of $119 and $24 at March 31, 2003
and December 31, 2002, respectively 5,091 4,424
------------------ ------------------
Total other assets
257,131 256,091
------------------ ------------------
Total assets $ 735,404 738,782
================== ==================
(Continued)
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Continued)
(Unaudited)
March 31, December 31,
Liabilities and Stockholders' Equity 2003 2002
- ----------------------------------------------------------------------------------------------------- -------------------
(Amounts in thousands)
Current liabilities:
Current maturities of obligations under long-term debt and capital leases $ 16,804 1,857
Accounts payable 27,528 33,605
Deferred revenue 16,628 18,290
Accrued payroll and payroll related obligations 12,823 11,821
Accrued liabilities 5,372 5,763
Accrued interest 4,819 7,938
Subscriber deposits 825 889
------------------- -------------------
Total current liabilities 84,799 80,163
Long-term debt, excluding current maturities 342,700 357,700
Obligations under capital leases, excluding current maturities 43,653 44,072
Obligations under capital leases due to related party, excluding current
maturities 697 703
Deferred income taxes, net of deferred income tax benefit 18,411 16,061
Other liabilities, net of accumulated accretion of $589 and $0 at March 31,
2003 and December 31, 2002, respectively 6,665 4,956
------------------- -------------------
Total liabilities 496,925 503,655
------------------- -------------------
Redeemable preferred stocks 26,907 26,907
------------------- -------------------
Stockholders' equity
Common stock (no par):
Class A. Authorized 100,000 shares; issued 52,032 and 51,795
shares at March 31, 2003 and December 31, 2002, respectively 201,216 199,903
Class B. Authorized 10,000 shares; issued 3,874 and 3,875
shares at March 31, 2003 and December 31, 2002, respectively;
convertible on a share-per-share basis into Class A common stock 3,274 3,274
Less cost of 338 and 317 Class A common shares held in treasury
at March 31, 2003 and December 31, 2002, respectively (1,917) (1,836)
Paid-in capital 11,338 11,222
Notes receivable with related parties issued upon stock option exercise (5,650) (5,650)
Retained earnings 3,889 1,847
Accumulated other comprehensive loss (578) (540)
------------------- -------------------
Total stockholders' equity 211,572 208,220
Commitments and contingencie
------------------- -------------------
Total liabilities and stockholders' equity $ 735,404 738,782
=================== ===================
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended March 31,
2003 2002
------------------- -------------------
(Amounts in thousands,
except per share amounts)
Revenues $ 92,777 88,210
Cost of sales and services 30,248 31,237
Selling, general and administrative expenses 32,993 31,301
Bad debt expense 597 581
Depreciation, amortization and accretion expense 13,501 13,958
------------------- -------------------
Operating income 15,438 11,133
------------------- -------------------
Other income (expense):
Interest expense (9,154) (6,591)
Deferred loan and senior notes fee expense (1,073) (757)
Interest income 166 73
------------------- -------------------
Other expense, net (10,061) (7,275)
------------------- -------------------
Net income before income taxes and cumulative
effect of a change in accounting principle 5,377 3,858
Income tax expense 2,282 1,646
------------------- -------------------
Net income before cumulative effect of a change in
accounting principle 3,095 2,212
Cumulative effect of a change in accounting principle,
net of income tax benefit of $367 (544) ---
------------------- -------------------
Net income $ 2,551 2,212
=================== ===================
Basic and diluted net income per common share:
Net income before cumulative effect of a change in
accounting principle $ 0.05 0.03
Cumulative effect of a change in accounting
principle, net of income tax benefit of $367 (0.01) ---
------------------- -------------------
Net income $ 0.04 0.03
=================== ===================
Non-GAAP Financial Reconciliation Schedule
(Amounts in Millions) Three Months Ended
March 31, 2003 March 31, 2002 December 31, 2002
------------------ ------------------- ------------------
EBITDA (Note 1) $ 28.9 25.1 28.1
Depreciation, amortization and accretion expense 13.5 14.0 14.6
------------------ ------------------- ------------------
Operating income 15.4 11.1 13.5
------------------ ------------------- ------------------
Other income (expense):
Interest expense (9.2) (6.6) (9.0)
Deferred loan and senior notes fee expense (1.1) (0.8) (3.2)
Interest income 0.2 0.1 0.2
------------------ ------------------- ------------------
Other expense, net (10.1) (7.3) (12.0)
------------------ ------------------- ------------------
Net income before income taxes and cumulative
effect of a change in accounting principle 5.3 3.8 1.5
Income tax expense 2.2 1.6 1.0
------------------ ------------------- ------------------
Net income before cumulative effect of a change
in accounting principle 3.1 2.2 0.5
Cumulative effect of a change in accounting principle, net of
income tax benefit of $0.4 (0.5) --- ---
------------------ ------------------- ------------------
Net income $ 2.6 2.2 0.5
================== =================== ==================
Notes:
(1) EBITDA (Earnings Before Interest, Taxes, Depreciation, Amortization and
Accretion) is the sum of Net Income, Net Interest expense, Taxes, Depreciation,
Amortization and Accretion. EBITDA is not presented as an alternative measure of
Net Income, Operating income or cash flow from operations, as determined in
accordance with Generally Accepted Accounting Principals (GAAP.) GCI's
management uses EBITDA to evaluate the operating performance of its business,
and as a measure of performance for incentive compensation purposes. GCI
believes EBITDA is a measure used as an analytical indicator of income generated
to service debt and fund capital expenditures. In addition, multiples of current
or projected EBITDA are used to estimate current or prospective enterprise
value. EBITDA does not give effect to cash used for debt service requirements,
and thus does not reflect funds available for investment or other discretionary
uses. EBITDA as presented herein may not be comparable to similarly titled
measures reported by other companies.
Traditional Summary Quarter Ended March 31, 2003 Quarter Ended March 31, 2002
---------------------------- ----------------------------
Long Local Long Local
Distance Cable Services Internet Combined Distance Cable Services Internet Combined
---------------------------------------------- ---------------------------------------------
Revenues $ 56,323 23,438 8,426 4,590 92,777 55,983 21,346 7,308 3,573 88,210
Cost of sales 16,738 6,457 5,649 1,404 30,248 19,378 5,956 4,709 1,194 31,237
---------------------------------------------- ---------------------------------------------
Contribution 39,585 16,981 2,777 3,186 62,529 36,605 15,390 2,599 2,379 56,973
---------------------------------------------- ---------------------------------------------
Selling, general and
administrative expenses 20,560 6,249 4,001 2,183 32,993 19,077 5,980 3,878 2,366 31,301
Bad debt expense 448 149 - - 597 559 22 - - 581
---------------------------------------------- ---------------------------------------------
EBITDA 18,577 10,583 (1,224) 1,003 28,939 16,969 9,388 (1,279) 13 25,091
Depreciation & amortization 6,989 4,766 864 882 13,501 8,087 4,171 810 890 13,958
---------------------------------------------- ---------------------------------------------
Operating income (loss) $ 11,588 5,817 (2,088) 121 15,438 8,882 5,217 (2,089) (877) 11,133
============================================== =============================================
Integrated Summary EBITDA
Quarter Ended March 31, 2003 Quarter Ended March 31, 2002
---------------------------- ----------------------------
Enter- Enter-
Voice Data tainment Combined Voice Data tainment Combined
---------------------------------------- -------------------------------------------
Traditional Summary EBITDA:
Long Distance $18,577 18,577 16,969 16,969
Cable 10,583 10,583 9,388 9,388
Local Services (1,224) (1,224) (1,279) (1,279)
Internet 1,003 1,003 13 13
---------------------------------------- -------------------------------------------
17,353 1,003 10,583 28,939 15,690 13 9,388 25,091
EBITDA Reallocations:
Long Distance (7,710) 7,710 - (7,898) 7,898 -
Cable 2,116 (2,116) - 1,396 (1,396) -
Local Services (27) 27 - (34) 34 -
---------------------------------------- -------------------------------------------
Integrated Summary EBITDA $ 9,616 10,856 8,467 28,939 7,758 9,341 7,992 25,091
======================================== ===========================================
Traditional Summary Quarter Ended March 31, 2003 Quarter Ended December 31, 2002
---------------------------- -------------------------------
Long Local Long Local
Distance Cable Services Internet Combined Distance Cable Services Internet Combined
---------------------------------------------- ---------------------------------------------
Revenues $ 56,323 23,438 8,426 4,590 92,777 56,243 23,366 8,561 4,172 92,342
Cost of sales 16,738 6,457 5,649 1,404 30,248 18,721 5,909 5,241 1,220 31,091
---------------------------------------------- ---------------------------------------------
Contribution 39,585 16,981 2,777 3,186 62,529 37,522 17,457 3,320 2,952 61,251
---------------------------------------------- ---------------------------------------------
Selling, general and
administrative expenses 20,560 6,249 4,001 2,183 32,993 19,337 7,001 4,442 2,154 32,934
Bad debt expense 448 149 - - 597 156 94 - - 250
---------------------------------------------- ---------------------------------------------
EBITDA 18,577 10,583 (1,224) 1,003 28,939 18,029 10,362 (1,122) 798 28,067
Depreciation & amortization 6,989 4,766 864 882 13,501 8,991 3,826 919 857 14,593
---------------------------------------------- ---------------------------------------------
Operating income (loss) $ 11,588 5,817 (2,088) 121 15,438 9,038 6,536 (2,041) (59) 13,474
============================================== =============================================
Integrated Summary EBITDA
Quarter Ended March 31, 2003 Quarter Ended December 31, 2002
---------------------------- -------------------------------
Enter- Enter-
Voice Data tainment Combined Voice Data tainment Combined
---------------------------------------- -------------------------------------------
Long Distance $18,577 18,577 18,029 18,029
Cable 10,583 10,583 10,362 10,362
Local Services (1,224) (1,224) (1,122) (1,122)
Internet 1,003 1,003 798 798
---------------------------------------- -------------------------------------------
17,353 1,003 10,583 28,939 16,907 798 10,362 28,067
EBITDA Reallocations:
Long Distance (7,710) 7,710 - (8,464) 8,464 -
Cable 2,116 (2,116) - 1,953 (1,953) -
Local Services (27) 27 - (51) 51 -
----------------------------------------- -------------------------------------------
Integrated Summary EBITDA $ 9,616 10,856 8,467 28,939 8,392 11,266 8,409 28,067
========================================= ===========================================