Exhibit 99.1
February 18, 2004
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 2003 FINANCIAL RESULTS
- - GCI closes $250 million bond issue to refinance existing $180 million
- - Net income of $15.5 million or $0.24 per diluted share
- - Consolidated revenues of $390.8 million
- - EBITDA of $126.9 million, as adjusted
ANCHORAGE, AK -- GCI (NASDAQ:GNCMA) today reported its 2003 results
with net income of $15.5 million, or earnings per diluted share of $0.24. The
company's 2003 net income compares to income of $6.7 million, or earnings per
diluted share of $0.08, in 2002. GCI recorded net income of $3.7 million or
$0.06 per diluted share in the fourth quarter of 2003 that compares to net
income of $0.5 million or $0.00 per share on a diluted basis for the fourth
quarter of 2002. Net income for 2003 included a recovery of bad debt from the
2002 WorldCom accounts receivable write-off as well as a write-off related to
the shut down of a first generation fiber to the lower 48 that occurred shortly
after the 2003 year-end.
GCI's revenues for 2003 increased to $390.8 million, an increase of 6.3
percent over 2002 revenues of $367.8 million. For the fourth quarter of 2003,
revenues totaled $103.8 million as compared to $92.3 million in the fourth
quarter of 2002, an increase of 12.5 percent. Sequentially, revenues increased
5.6 percent over third quarter 2003 revenues of $98.3 million.
Earnings before interest, taxes, depreciation, amortization and
accretion (EBITDA) for 2003 totaled $126.9 million, as adjusted, to exclude a
$5.4 million impairment charge related to the shut down of a first generation
fiber to the lower 48. EBITDA for 2002 totaled $102.1 million. Excluding a total
of $2.8 million of WorldCom bad debt recoveries in 2003 and the $11.0 million
bad debt reserve charge originally recorded in 2002, EBITDA for 2003 increased
$11.0 million or 9.7 percent over 2002.
Fourth quarter 2003 EBITDA totaled $36.5 million, as adjusted, to
exclude the $5.4 million impairment charge and compares to $28.1 million
reported for the fourth quarter of 2002. Excluding the WorldCom bad debt
recovery recorded in the fourth quarter, EBITDA increased $6.2 million or 22.1
percent over the fourth quarter of 2002. Sequentially, fourth quarter 2003
EBITDA of $36.5 million increased 14.1 percent or $4.2 million over the third
quarter 2003 EBITDA of $30.7 million, after excluding the WorldCom bad debt
recoveries of $2.2 million and $0.6 million in the fourth and third quarters of
2003, respectively.
"We are pleased to report our seventh consecutive year of record high
revenues and EBITDA," said Ron Duncan, GCI president. "The capital markets
improved steadily throughout the year, large scale bankruptcies were few and the
telecom and cable stock indices recovered some of their losses from previous
years. We took advantage of these improving markets to cut the interest rate in
half on our senior bank facility and refinanced our $180 million, 9.75 percent
coupon, senior notes with a new issue at a 7.25 percent coupon. Collectively,
this will lower our annual cash interest costs by $8 million. Our ability to
create free cash flows and invest it in ways that maximize shareholder value has
never been greater."
"We performed solidly in a year when much of the rest of the telecom
industry remained weak and we are well positioned going into 2004. We anticipate
revenues of $410 million to $420 million and EBITDA of $137 million to $142
million, including the expected recovery of the remaining $8.0 million WorldCom
bad debt reserve charge from 2002. For the first quarter of 2004 we expect
revenues of $100 million to $102 million and EBITDA of approximately $29 to $30
million, before any WorldCom recoveries."
Customer Highlights:
- The local services business added 10,100 access lines during 2003 and
at year-end had more than 106,100 total access lines in service
representing a 22 percent share of the total access line market in
Alaska. The company added approximately 2,700 access lines in the
fourth quarter of 2003.
- GCI's had 95,700 statewide Internet customers at the end of 2003, an
increase of 6,200 subscribers as compared with 89,500 users at the end
of 2002. More than 46,000 of these Internet customers are using GCI
cable modem access, an increase of 9,800 over the 36,200 at year-end
2002. The company added 1,800 Internet subscribers and 3,200 new cable
modem users during the fourth quarter of 2003.
- GCI cable television services now pass 202,191 homes and serve 134,350
basic subscribers at the end of 2003. Basic subscribers decreased 1.3
percent from the fourth quarter of 2002 and decreased sequentially by
0.7 percent from the third quarter of 2003.
- Digital special interest subscribers at the end of 2003 total 34,900,
an increase of 4,400 subscribers for the year. GCI added 100 new
digital special interest subscribers during the fourth quarter of 2003.
- Long-distance billable minutes increased 2.7 percent to 1.159 billion
minutes for the year 2003 as compared to 2002. Minutes for the fourth
quarter of 2003 increased 15.5 percent year-over-year and decreased 3.1
percent sequentially from the third quarter of 2003 due to seasonality.
Long Distance Results
Long distance and related revenues for 2003 were up 1.9 percent to
$236.0 million as compared to $231.5 million for the prior year. For 2003, long
distance EBITDA totaled $81.7 million as adjusted to exclude the $5.4 million
impairment charge, as compared to $65.6 million in 2002, an increase of 24.5
percent. The increases in year-over-year revenue are primarily attributable to
an increase in managed services, broadband, private line and dedicated data
services revenues. EBITDA growth for 2003 is primarily attributable to increased
revenues, reduced access charges and the WorldCom bad debt reserve charge of
$11.0 million in 2002 and subsequent recoveries totaling $2.8 million in 2003.
For the fourth quarter of 2003, long distance revenues totaled $61.4
million as compared to revenues of $56.2 million in the fourth quarter of 2002
and $60.2 million in the third quarter of 2003. Long distance revenues increased
9.3 percent year-over-year and 2.0 percent sequentially. Increases in managed
services, private line and dedicated data services revenues mitigated per minute
rate reductions on a year-over-year basis. The fourth quarter revenue increases
offset normal sequential seasonal revenue decreases from carrying fewer minutes
on the company's network. Long distance EBITDA, as adjusted, increased 28.9
percent for the fourth quarter of 2003 to $23.2 million as compared to $18.0
million in the fourth quarter of the prior year and increased $2.7 million from
$20.5 million in the third quarter of 2003. Excluding the WorldCom bad debt
recoveries of $2.2 million in the fourth quarter and $0.6 million in the third
quarter of 2003, EBITDA, as adjusted, would have increased on a year-over-year
and sequential basis, 16.7 percent and 5.8 percent, respectively.
Total minutes-of-use in the fourth quarter of 2003 were up 15.5 percent
as compared to the fourth quarter of 2002 and decreased 3.1 percent from the
third quarter of 2003. The sequential decrease in minutes was due to normal
seasonal patterns.
The total number of billed long distance customers at the end of 2003
decreased to 85,600 from 88,200 at the end of 2002, was down slightly, 0.7
percent, from September 2003. The decrease in long distance customers is
attributed primarily to substitution effects of cellular phones and prepaid
cards.
Cable Television Results
Cable television revenues for the year increased 8.2 percent to $96.0
million in 2003 from $88.7 million in 2002. EBITDA increased 7.6 percent to
$42.3 million from $39.3 million in 2002. The increase in revenues and EBITDA
for the year is due primarily to an increase in the average revenue per
subscriber as a result of increased penetration of digital special interest
television service and cable modem services. GCI cable television services pass
202,191 homes and serve 134,350 basic subscribers. Homes passed increased 2.7
percent and basic subscribers decreased 1.3 percent during 2003.
Cable television revenues for the fourth quarter of 2003 increased 6.8
percent to $25.0 million as compared to $23.4 million in the fourth quarter of
2002, and increased 5.5 percent from the third quarter of 2003. EBITDA increased
5.8 percent to $11.0 million in the fourth quarter of 2003 as compared to $10.4
million in the fourth quarter of 2002, and increased 13.4 percent from $9.7
million in the third quarter of 2003. The increase in revenues and EBITDA
year-over-year is due to the sales of higher margin products such as digital
special interest cable television service and cable modem services.
Gross margin for the fourth quarter as a percentage of revenues
decreased by 93 basis points year-over-year and increased by 165 basis points
sequentially. The growth rate in higher value products such as digital special
interest cable television services and cable modems is helping to mitigate the
effects of continuing increases in programming and copyright costs.
As of December 31, 2003, the company's cable and entertainment
operations passed 202,191 homes and served 134,350 basic subscribers (108,752
equivalent basic subscribers). Average revenue per equivalent basic subscriber
increased 10.0 percent to $76.34 for the fourth quarter of 2003 as compared to
$69.38 for the fourth quarter of 2002, and increased 6.4 percent on a sequential
basis. The company experienced a loss of 950 subscribers to its systems during
the fourth quarter of 2003. DBS competition grew both customers and market share
in the fourth quarter; some of those customers came from GCI.
The company offers digital special interest cable television service in
Anchorage, Fairbanks, Juneau, Kenai, Soldotna, Ketchikan and the Mat-Su Valley
area. GCI served 34,900 digital special interest subscribers at the end of the
fourth quarter.
GCI, 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 the company's operations. The operating statistics below
include capital expenditures and customer information from cable services and
the components of local services and Internet services which offer services
utilizing our cable services' facilities.
GCI's capital expenditures by standard reporting category for the year
ending December 31, 2003 and 2002 follow (amounts in thousands):
2003 2002
---------- ----------
Customer premise equipment ("CPE") $ 10,713 10,609
Commercial 705 597
Scalable infrastructure 2,221 3,082
Line extensions 1,270 866
Upgrade/rebuild 3,800 4,567
Support capital 503 5,413
---------- ----------
$ 19,212 25,134
---------- ----------
The standard definition of a customer relationship is the number of
customers who receive at least one level of service, encompassing voice, video,
and data services, without regard to which services customers purchase. These
relationships do not include local telephone customers except those served by
the cable television plant. At December 31, 2003 and 2002, GCI's cable business
had 121,900 and 124,400 customer relationships, respectively.
The standard 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 December 31, 2003 and 2002, GCI's cable
business had 180,400 and 172,200 revenue generating units, respectively. The
increase in the revenue generating units of 2,200 and 4,600 from September 30,
2003 and 2002, respectively, is due primarily to an increase in the number of
cable modem customers partially offset by the seasonal decline in hotels that
only subscribe to cable television services for the summer tourist season. Each
hotel room is considered a revenue-generating unit.
Local Telephone Results
Local telephone service revenues for the year increased 21.5 percent to
$39.0 million as compared to $32.1 million in 2002. Local services generated a
$2.5 million EBITDA loss for 2003, compared to a loss of $4.7 million in 2002.
The $2.2 million improvement in EBITDA year-over-year is primarily related to
increasing market share. If the local telephone business received credit for
access cost savings on calls placed by GCI long distance customers who are also
GCI local customers, the local telephone business would have reported positive
EBITDA of $4.4 million for 2003.
Local telephone service revenues totaled $11.8 million in the fourth
quarter of 2003 as compared to $8.6 million in the prior year. Revenues
increased $2.3 million or 24.2 percent from the third quarter of 2003. Local
services generated EBITDA of $0.7 million during the fourth quarter of 2003 as
compared to the prior year fourth quarter EBITDA loss of $1.1 million and as
compared to the third quarter's EBITDA loss of $0.9 million. The increase in
fourth quarter EBITDA of $0.7 million was due primarily to an increase in the
amount of Universal Service Fund revenues that were earned during 2003.
GCI has more than 106,100 access lines in service at the end of 2003,
an increase of 10,100 access lines or 10.5 percent over the year 2002. GCI added
approximately 2,700 local access lines in the fourth quarter, an increase of 2.6
percent over the third quarter of 2003. The company estimates it has attained a
22 percent local service market share in Alaska. Approximately 86 percent of
GCI's access lines are provisioned on its own facilities or on resold local
loops.
Internet Access Results
As of December 31, 2003, GCI had 95,700 statewide Internet customers,
an increase of 6,200 customers over the year 2002. GCI's total statewide
Internet customers at the end of 2003 included more than 46,000 subscribers
using cable modem access, an increase of 9,800 customers as compared 36,200
cable modem customers at the end of 2002.
Internet access revenues for 2003 totaled $19.8 million, an increase of
26.9 percent over 2002 revenues of $15.6 million. Internet EBITDA for the year
totaled $5.4 million, an improvement of $3.5 million as compared to $1.9 million
for 2002. The revenue and EBITDA increases results from more customers served,
the migration of existing customers from dial-up to cable modem access and
customers adding more features and services, increasing economies of scale, and
effective operating cost controls.
Internet access revenues increased 31.0 percent to $5.5 million in the
fourth quarter of 2003 as compared to $4.2 million for the fourth quarter of
2002. Internet access revenues increased 12.2 percent from $4.9 million in the
third quarter of 2003. The sequential increase is due to an increase in the
number of new Internet subscribers and subscribers adding additional features
and services including cable modem service. Fourth quarter 2003 EBITDA of $1.6
million is an improvement of $0.8 million as compared to EBITDA of $0.8 million
in the fourth quarter of 2002 and, is an improvement of $0.3 million over the
third quarter of 2003.
GCI added 1,800 new Internet subscribers and 3,200 cable modem
customers in the fourth quarter of 2003, of which 700 are new LiteSpeed
customers.
GCI began offering Internet access services during 1998 and its dial-up
Internet service is offered in most major Alaska markets. GCI is the largest
Internet access provider in Alaska.
Other Items
During 2003, GCI core capital expenditures totaled $46.0 million, as
compared to $66.1 million in 2002. GCI recorded $16.5 million in capital
expenditures related to the new undersea fiber during 2003. GCI generated
approximately $30.3 million of free cash flow for the year before repayment of
$12.7 million of senior bank facility loan principal and senior bank facility
refinancing fees of $3.5 million.
GCI will hold a conference call to discuss 2003 results, including the
fourth quarter, on Thursday, February 19, 2004 beginning at 2p.m. (Eastern). To
access the briefing on February 19, call the WorldCom conference operator
between 1:50 p.m. and 2 p.m. (Eastern) at 800-475-0212. (International callers
should dial 630-395-0018) and identify your call as "GCI." In addition to the
conference call, GCI will make available net conferencing. To access the call
via net conference, log on to www.gci.com and follow the instructions. The call
will be archived online for two weeks. A replay of the call will be available at
4 p.m. (Eastern) for 72-hours by dialing 888-562-2900, access code 7461
(International callers should dial 402-530-7609.)
GCI is the largest Alaska-based and operated integrated
telecommunications provider. A pioneer in bundled services, GCI 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.
The foregoing contains forward-looking statements regarding the
company's expected results that 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 statement sections of Form 10-K and 10-Q filed with the
Securities and Exchange Commission.
# # #
Non-GAAP Financial Reconciliation Schedule
(Unaudited, Amounts in Millions)
Three Months Ended
December 31, 2003 December 31, 2002 September 30, 2003
-------------------- ------------------- ---------------------
EBITDA, as adjusted (Note 1) $ 36.5 28.1 30.7
Impairment charge 5.4 --- ---
-------------------- ------------------- ---------------------
EBITDA (Note 2) 31.1 28.1 30.7
Depreciation, amortization and accretion
expense 14.0 14.6 13.1
-------------------- ------------------- ---------------------
Operating income 17.1 13.5 17.6
-------------------- ------------------- ---------------------
Other income (expense):
Interest expense (7.6) (9.0) (8.9)
Deferred loan and senior notes fee
expense (5.4) (3.2) (0.6)
Interest income 0.1 0.2 0.2
-------------------- ------------------- ---------------------
Other expense, net (12.9) (12.0) (9.3)
-------------------- ------------------- ---------------------
Net income before income taxes 4.2 1.5 8.3
Income tax expense 0.5 1.0 3.8
-------------------- ------------------- ---------------------
Net income $ 3.7 0.5 4.5
==================== =================== =====================
Year Ended
December 31, 2003 December 31, 2002
--------------------- -------------------
EBITDA, as adjusted (Note 1) $ 126.9 102.1
Impairment charge 5.4 ---
--------------------- -------------------
EBITDA (Note 2) 121.5 102.1
Depreciation, amortization and accretion
expense 53.4 56.4
--------------------- -------------------
Operating income 68.1 45.7
--------------------- -------------------
Other income (expense):
Interest expense (34.8) (29.3)
Deferred loan and senior notes fee
expense (7.7) (4.6)
Interest income 0.5 0.5
--------------------- -------------------
Other expense, net (42.0) (33.4)
--------------------- -------------------
Net income before income taxes and
cumulative effect of a change in
accounting principle 26.1 12.3
Income tax expense 10.1 5.6
--------------------- -------------------
Net income before cumulative effect
of a change in accounting principle 16.0 6.7
Cumulative effect of a change in accounting
principle, net of income tax benefit of
$0.4 (0.5) ---
--------------------- -------------------
Net income $ 15.5 6.7
===================== ===================
Notes:
(1) EBITDA (as defined in Note 2 below) before deducting impairment charge.
(2) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is
the sum of Net Income, Net Other Expense, Taxes, and 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
accounting principles generally accepted in the United States of America. 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.
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Amounts in thousands) December 31,
ASSETS 2003 2002
- ----------------------------------------------------------------------------------------- ------------- ----------------
Current assets:
Cash and cash equivalents $ 10,435 11,940
--------------- --------------
Receivables:
Trade 67,186 63,111
Employee 284 391
Other 2,765 3,093
--------------- --------------
70,235 66,595
Less allowance for doubtful receivables 1,954 14,010
--------------- --------------
Net receivables 68,281 52,585
--------------- --------------
Prepaid and other current assets 12,159 9,171
Deferred income taxes, net 7,195 8,509
Notes receivable from related parties 2,723 697
Property held for sale 2,173 1,037
Inventories 1,513 400
--------------- --------------
Total current assets 104,479 84,339
--------------- --------------
Property and equipment in service, at cost:
Land and buildings 3,151 2,982
Telephony distribution systems 345,984 344,566
Cable television distribution systems 161,054 149,415
Support equipment 46,219 39,807
Transportation equipment 5,500 5,687
Property and equipment under capital leases 51,214 51,770
--------------- --------------
613,122 594,227
Less accumulated depreciation 244,083 212,833
--------------- --------------
Net property and equipment in service 369,039 381,394
Construction in progress 33,618 16,958
--------------- --------------
Net property and equipment 402,657 398,352
--------------- --------------
Cable certificates, net of amortization of $26,775 and $26,884 at December 31, 2003
and 2002 191,241 191,132
Goodwill, net of amortization of $7,200 at December 31, 2003 and 2002 41,972 41,972
Other intangible assets, net of amortization of $1,656 and $1,848 at December 31, 2003
and 2002, respectively 3,895 2,689
Deferred loan and senior notes costs, net of amortization of $5,308 and $4,110 at
December 31, 2003 and 2002, respectively 5,757 9,961
Notes receivable from related parties 3,443 5,142
Other assets, at cost, net of amortization of $64 and $24 at December 31, 2003 and 2002,
respectively 9,576 5,195
--------------- --------------
Total other assets 255,884 256,091
--------------- --------------
Total assets $ 763,020 738,782
=============== ==============
(Continued)
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Continued)
(Unaudited)
(Amounts in thousands) December 31,
LIABILITIES AND STOCKHOLDERS' EQUITY 2003 2002
- ------------------------------------------------------------------------------------------ -------------- --------------
Current liabilities:
Current maturities of obligations under capital leases $ 5,139 1,857
Accounts payable 34,133 33,605
Deferred revenue 22,885 18,290
Accrued payroll and payroll related obligations 17,545 11,821
Accrued interest 8,645 7,938
Accrued liabilities 6,546 5,763
Subscriber deposits 651 889
-------------- --------------
Total current liabilities 95,544 80,163
Long-term debt 345,000 357,700
Obligations under capital leases, excluding current maturities 38,959 44,072
Obligation under capital lease due to related party, excluding current maturities 677 703
Deferred income taxes, net of deferred income tax benefit 24,168 16,061
Other liabilities 6,366 4,956
-------------- --------------
Total liabilities 510,714 503,655
-------------- --------------
Redeemable preferred stocks 25,664 26,907
-------------- --------------
Stockholders' equity:
Common stock (no par):
Class A. Authorized 100,000 shares; issued 52,589 and 51,795 shares at December
31, 2003 and 2002, respectively 202,362 199,903
Class B. Authorized 10,000 shares; issued 3,868 and 3,875 shares at
December 31, 2003 and 2002, respectively; convertible on a
share-per-share basis into Class Acommon stock 3,269 3,274
Less cost of 338 and 317 Class A common shares held in treasury at December 31,
2003 and 2002, respectively (1,917) (1,836)
Paid-in capital 12,836 11,222
Notes receivable with related parties issued upon stock option exercise (4,971) (5,650)
Retained earnings 15,371 1,847
Accumulated other comprehensive loss (308) (540)
-------------- --------------
Total stockholders' equity 226,642 208,220
-------------- --------------
Commitments and contingencies
Total liabilities and stockholders' equity $ 763,020 738,782
============== ==============
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Years ended December 31, 2003, 2002 and 2001
(Unaudited)
2003 2002 2001
------------- ------------ -------------
(Amounts in thousands, except per share amounts)
Revenues $ 390,797 367,842 357,258
Cost of sales and services 125,383 123,564 139,793
Selling, general and administrative expenses 138,693 129,029 116,536
Bad debt expense (recovery) (178) 13,124 4,279
Impairment charge 5,434 --- ---
Depreciation, amortization and accretion expense 53,388 56,400 55,675
------------- ------------ -------------
Operating income 68,077 45,725 40,975
------------- ------------ -------------
Other income (expense):
Interest expense (34,745) (29,316) (31,208)
Amortization of loan and senior notes fees (7,732) (4,612) (1,402)
Interest income 560 525 294
------------- ------------ -------------
Other expense, net (41,917) (33,403) (32,316)
------------- ------------ -------------
Net income before income taxes and cumulative effect of a
change in accounting principle 26,160 12,322 8,659
Income tax expense 10,074 5,659 4,070
------------- ------------ -------------
Net income before cumulative effect of a change in
accounting principle 16,086 6,663 4,589
Cumulative effect of a change in accounting principle, net of
income tax benefit of $367 (544) --- ---
------------- ------------ -------------
Net income $ 15,542 6,663 4,589
============= ============ =============
Basic and diluted net income per common share:
Net income before cumulative effect of a change in accounting
principle $ 0.25 0.08 0.05
Cumulative effect of a change in accounting principle, net of
income tax benefit of $367 (0.01) --- ---
------------- ------------ -------------
Net income $ 0.24 0.08 0.05
============= ============ =============
Traditional Summary Year Ended December 31, 2003
(Unaudited) Long Local
Distance Cable Services Internet Combined
-------------------------------------------------------------------------
Revenues $ 235,953 96,004 38,998 19,842 390,797
Cost of sales 69,771 25,988 23,761 5,863 125,383
-------------------------------------------------------------------------
Contribution 166,182 70,016 15,237 13,979 265,414
-------------------------------------------------------------------------
Selling, general and
administrative expenses 85,285 27,101 17,718 8,589 138,693
Bad debt expense (829) 651 - - (178)
-------------------------------------------------------------------------
EBITDA, as adjusted 81,726 42,264 (2,481) 5,390 126,899
Impairment charge 5,434 - - - 5,434
-------------------------------------------------------------------------
EBITDA 76,292 42,264 (2,481) 5,390 121,465
Depreciation, amortization and
accretion expense 28,831 17,296 3,553 3,708 53,388
-------------------------------------------------------------------------
Operating income (loss) $ 47,461 24,968 (6,034) 1,682 68,077
=========================================================================
Integrated Summary EBITDA, as Adjusted
(Unaudited) Year Ended December 31, 2003
Voice Data Video Combined
--------------------------------------------------------------
Traditional Summary EBITDA, as Adjusted:
Long Distance $ 81,726 81,726
Cable 42,264 42,264
Local Services (2,481) (2,481)
Internet 5,390 5,390
--------------------------------------------------------------
79,245 5,390 42,264 126,899
EBITDA, as Adjusted, Reallocations:
Long Distance (37,045) 37,045 -
Cable 9,636 (9,636) -
Local Services (109) 109 -
--------------------------------------------------------------
Integrated Summary EBITDA, as Adjusted $ 42,091 52,180 32,628 126,899
==============================================================
Traditional Summary Year Ended December 31, 2002
(Unaudited) Long Local
Distance Cable Services Internet Combined
---------------------------------------------------------------------------
Revenues $ 231,499 88,688 32,071 15,584 367,842
Cost of sales 74,918 23,649 20,205 4,792 123,564
---------------------------------------------------------------------------
Contribution 156,581 65,039 11,866 10,792 244,278
---------------------------------------------------------------------------
Selling, general and
administrative expenses 78,309 25,264 16,601 8,855 129,029
Bad debt expense 12,696 428 - - 13,124
---------------------------------------------------------------------------
EBITDA 65,576 39,347 (4,735) 1,937 102,125
Depreciation, amortization
and accretion expense 33,528 15,882 3,466 3,524 56,400
---------------------------------------------------------------------------
Operating income (loss) $ 32,048 23,465 (8,201) (1,587) 45,725
===========================================================================
Integrated Summary EBITDA
(Unaudited) Year Ended December 31, 2002
Voice Data Video Combined
-------------------------------------------------------------
Traditional Summary EBITDA:
Long Distance $ 65,576 65,576
Cable 39,347 39,347
Local Services (4,735) (4,735)
Internet 1,937 1,937
-------------------------------------------------------------
60,841 1,937 39,347 102,125
EBITDA Reallocations:
Long Distance (31,985) 31,985 -
Cable 6,883 (6,883) -
Local Services (163) 163 -
-------------------------------------------------------------
Integrated Summary EBITDA $ 28,693 40,968 32,464 102,125
=============================================================
Traditional Summary Three Months Ended December 31, 2003
(Unaudited) Long Local
Distance Cable Services Internet Combined
-------------------------------------------------------------------------
Revenues $ 61,432 24,995 11,787 5,540 103,754
Cost of sales 18,799 6,553 6,316 1,526 33,194
-------------------------------------------------------------------------
Contribution 42,633 18,442 5,471 4,014 70,560
-------------------------------------------------------------------------
Selling, general and
administrative expenses 21,645 7,315 4,816 2,368 36,144
Bad debt expense (recovery) (2,226) 116 - - (2,110)
-------------------------------------------------------------------------
EBITDA, as adjusted 23,214 11,011 655 1,646 36,526
Impairment charge 5,434 - - - 5,434
-------------------------------------------------------------------------
EBITDA 17,780 11,011 655 1,646 31,092
Depreciation, amortization and
accretion expense 8,045 3,855 941 1,179 14,020
-------------------------------------------------------------------------
Operating income (loss) $ 9,735 7,156 (286) 467 17,072
=========================================================================
Integrated Summary EBITDA, as Adjusted
(Unaudited) Three Months Ended December 31, 2003
Voice Data Video Combined
-------------------------------------------------------------
Traditional Summary EBITDA, as Adjusted:
Long Distance $ 23,214 23,214
Cable 11,011 11,011
Local Services 655 655
Internet 1,646 1,646
-------------------------------------------------------------
23,869 1,646 11,011 36,526
EBITDA, as Adjusted, Reallocations:
Long Distance (11,448) 11,448 -
Cable 2,469 (2,469) -
Local Services (26) 26 -
-------------------------------------------------------------
Integrated Summary EBITDA, as Adjusted $ 12,395 15,589 8,542 36,526
=============================================================
Traditional Summary Three Months Ended December 31, 2002
(Unaudited) Long Local
Distance Cable Services Internet Combined
---------------------------------------------------------------------------
Revenues $ 56,243 23,366 8,561 4,172 92,342
Cost of sales 18,721 5,909 5,241 1,220 31,091
---------------------------------------------------------------------------
Contribution 37,522 17,457 3,320 2,952 61,251
---------------------------------------------------------------------------
Selling, general and
administrative expenses 19,337 7,001 4,442 2,154 32,934
Bad debt expense 156 94 - - 250
---------------------------------------------------------------------------
EBITDA 18,029 10,362 (1,122) 798 28,067
Depreciation, amortization
and accretion expense 8,991 3,826 919 857 14,593
---------------------------------------------------------------------------
Operating income (loss) $ 9,038 6,536 (2,041) (59) 13,474
===========================================================================
Integrated Summary EBITDA
(Unaudited) Three Months Ended December 31, 2002
Voice Data Video Combined
------------------------------------------------------------
Traditional Summary EBITDA:
Long Distance $ 18,029 18,029
Cable 10,362 10,362
Local Services (1,122) (1,122)
Internet 798 798
------------------------------------------------------------
16,907 798 10,362 28,067
EBITDA Reallocations:
Long Distance (8,464) 8,464 -
Cable 1,953 (1,953) -
Local Services (51) 51 -
------------------------------------------------------------
Integrated Summary EBITDA $ 8,392 11,266 8,409 28,067
============================================================
Traditional Summary Three Months Ended September 30, 2003
(Unaudited) Long Local
Distance Cable Services Internet Combined
---------------------------------------------------------------------------
Revenues $ 60,166 23,699 9,540 4,922 98,327
Cost of sales 17,822 6,604 5,933 1,511 31,870
---------------------------------------------------------------------------
Contribution 42,344 17,095 3,607 3,411 66,457
---------------------------------------------------------------------------
Selling, general and
administrative expenses 21,485 7,222 4,470 2,085 35,262
Bad debt expense 365 168 - - 533
---------------------------------------------------------------------------
EBITDA 20,494 9,705 (863) 1,326 30,662
Depreciation, amortization
and accretion expense 6,983 4,379 876 829 13,067
---------------------------------------------------------------------------
Operating income (loss) $ 13,511 5,326 (1,739) 497 17,595
===========================================================================
Integrated Summary EBITDA
(Unaudited) Three Months Ended September 30, 2003
Voice Data Video Combined
-------------------------------------------------------------
Traditional Summary EBITDA:
Long Distance $ 20,494 20,494
Cable 9,705 9,705
Local Services (863) (863)
Internet 1,326 1,326
-------------------------------------------------------------
19,631 1,326 9,705 30,662
EBITDA Reallocations:
Long Distance (9,477) 9,477 -
Cable 2,372 (2,372) -
Local Services (27) 27 -
-------------------------------------------------------------
Integrated Summary EBITDA $ 10,127 13,202 7,333 30,662
=============================================================