Exhibit 99.1
May 9, 2007
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 FIRST QUARTER 2007 FINANCIAL RESULTS
|
Consolidated revenue of $124.6 million |
|
Net income of $1.5 million or $0.02 per diluted share |
|
EBITDAS of $34.0 million |
ANCHORAGE, AK -- GCI (NASDAQ:GNCMA) today reported net income of $1.5 million, or earnings per diluted share of $0.02, for the first quarter of 2007. The companys first quarter net income compares to income of $3.3 million, or earnings per diluted share of $0.06 in the same period of 2006.
GCIs first quarter 2007 revenues totaled $124.6 million, an increase of 10.4 percent over the first quarter of 2006. Revenue increases in GCIs consumer, network access, and managed boadband segments were partially offset by decreased revenue in the commercial segment. GCIs first quarter results include the consolidation of $6.5 million in revenues from Alaska DigiTel, LLC (AKD.)
First quarter 2007 earnings before interest, taxes, depreciation, amortization and share based compensation expense (EBITDAS) totaled $34.0 million. EBITDAS decreased $3.1 million or 8.4 percent from the first quarter of 2006. EBITDAS growth in the consumer segment was offset by the decrease in EBITDAS from the commercial segment and by certain costs associated with repairing a fiber break, some of which may be reversed in a subsequent quarter. GCIs first quarter results include the consolidation of slightly less than one million dollars in EBITDAS from AKD.
Sequentially, revenues for the company increased $3.2 million over fourth quarter 2006 revenues of $121.4 million. First quarter EBITDAS of $34.0 million decreased 8.4 percent from $37.1 million in the fourth quarter of 2006. Sequential increases in revenue and EBITDAS from the consumer segment were offset by a network change by a carrier customer that reduced minutes of use and by scheduled rate reductions that impacted the network access segment and from declining managed services revenues from a large customer in the commercial segment. Sequential EBITDAS for the first quarter was also affected by a $1.1 million bad debt recovery in the managed broadband business in the fourth quarter of 2006 and by the recognition of fiber repair costs occurring in the first quarter.
GCIs revenue and EBITDAS were short of guidance as a result of the combined effects of declining revenue and weaker than expected performance in the commercial segment, fewer minutes of network access traffic than anticipated and fiber repair costs. The company expected revenues of approximately $119 million to $121 million, and EBITDAS in excess of $37 million, excluding AKDs financial results.
Unfortunately, a very strong performance in the consumer business and dramatic growth in our customer metrics were offset by poor financial results, said GCI President Ron Duncan. Uncertainty about the volume of network access minutes makes it difficult to project the second
uarter. We have implemented a plan to restore our financial progress and hope to be back on track by the end of this year.
GCI is revising its 2007 annual guidance and now anticipates revenues of $514 million to $534 million and EBITDAS is expected to exceed $162 million, including revenues of $29 million and EBITDAS of $3 million from AKD.
Highlights
|
Consumer revenues totaled $53.3 million, an increase of 24.9 percent over the prior year and an increase of 13.8 percent from the fourth quarter of 2006. The increases were from video, data and wireless sales. |
|
Network access revenues totaled $40.3 million, an increase of 6.6 percent over the prior year and a decrease of 4.8 percent when compared to the fourth quarter of 2006. The increase over the prior year is due primarily to an increase in data revenues. The decrease in sequential revenues is due to a decrease in the number of long distance minutes carried on GCIs network and a decline in the average rate per minute for other common carriers. |
|
Commercial revenues decreased 7.9 percent from the prior year and 4.8 percent from the fourth quarter of 2006. |
|
GCI local access lines increased by 1,400 for the quarter. Consumer, network access and commercial local access lines totaled 112,600 at the end of the first quarter of 2007 representing an estimated 26 percent share of the total access lines market in Alaska. GCI began offering competitive local service in Eagle River during the first quarter and Chugiak in April, 2007. Prior to our entry both markets were served by the incumbent Matanuska Telephone Association (MTA.) MTAs markets represent approximately 60,000 access lines. |
|
GCI has provisioned 46,500 consumer and commercial lines on its own facilities at the end of the first quarter of 2007, an increase of 6,700 lines over the fourth quarter of 2006. GCI revised its facilities access lines totals to include lines served directly by its owned fiber facilities. Total line conversions to date account for almost $13.0 million in annualized avoided loop lease costs. |
|
GCI had 89,300 consumer and commercial cable modem access customers at the end of the first quarter of 2007, an increase of 3,000 over the 86,300 cable modem customers at the end of the fourth quarter 2006. GCI customers continue to migrate from dial up access service to cable modem. Average monthly revenue per cable modem totaled $32.94 for the first quarter of 2007 as compared to $32.29 for the fourth quarter of 2006. |
|
GCI had 32,700 wireless subscribers, an increase of 3,800 subscribers from the fourth quarter of 2006. AKD had 33,400 wireless subscribers at the end of the first quarter of 2007. |
|
During the first quarter of 2007 GCI purchased approximately 113,000 shares at an average cost of $15.50 per share. The company is authorized to purchase an additional $14.5 million of its shares through the end of the second quarter of 2007. |
Consumer
Total consumer revenues increased 24.9 percent to $53.3 million as compared to $42.7 million in the first quarter of 2006 and increased 13.8 percent from the fourth quarter of 2006. The increase in revenue is due primarily to an increase in video, data and wireless sales and include consolidated revenues of $5.2 million from AKD.
Consumer voice revenues were relatively unchanged when compared to the prior year and the fourth quarter of 2006. Long distance minutes decreased from the prior year and sequentially. Consumer local access lines in service for the first quarter were down approximately 500 lines after a data base clean up in the fourth quarter of 2006 which removed 700 lines included in total access lines reported for the first quarter of 2006. Access lines in the first quarter increased by 1,200 over the fourth quarter of 2006. GCI converted 6,000 consumer access lines to its own facilities during the first quarter of 2007. An increase in USF support mitigated decreases in voice revenues as a result of fewer long distance minutes and local line losses when compared to the first quarter of 2006.
Consumer video revenue increased 7.4 percent over the prior year and increased slightly over the fourth quarter of 2006. The increase in revenue is due in part to increasing average revenue per customer in certain markets and increases in video subscribers purchasing digital service and renting high definition/digital video recorder converters.
Consumer data revenues increased 13.1 percent over the prior year and 1.8 percent over the fourth quarter of 2006. The increase in consumer data revenues is due to an increase in cable modem customers. GCI added 7,300 consumer cable modem customers over the prior year and 2,800 customers during the first quarter of 2007.
Consumer wireless revenues increased substantially during the first quarter of 2007. The increase in wireless revenues is primarily due to the consolidation of revenues from AKD and increases in GCI wireless customers.
Subsequent to the quarters end GCI received a waiver of the FCCs requirement to use video set top boxes with segregated security after July 1, 2007. GCI will be allowed to continue to provision low end boxes with integrated security as it completes the conversion of all of its customers to a fully digital cable network by early 2009. This will reduce GCIs required investment in customer premise equipment and facilitate the digital TV transition for GCI customers.
Network Access
Network access revenues increased 6.6 percent to $40.3 million as compared to $37.8 million in the first quarter of 2006 and decreased 4.8 percent from the fourth quarter of 2007. The increase in revenue over the prior year is primarily due to an increase in data revenues. The decrease in sequential revenues was greater than expected and resulted from a scheduled rate reduction and a lower volume of carrier minutes on GCIs network. A portion of the loss of traffic is a result of industry consolidation. Rate compression and traffic mix changes resulted in a lower average rate per minute as compared to the fourth quarter of 2006.
Voice revenues decreased 0.2 percent from the prior year and 8.6 percent from the fourth quarter of 2006. The sequential decrease in voice revenues is primarily due to a reduced number of minutes and declining rates per minute. Network access minutes increased 9.7 percent to 315.8 million minutes for the first quarter of 2007 as compared to the first quarter of 2006. The increase in minutes over the prior year mostly offset decreases in the average rate per minute. Minutes for the first quarter of 2007 decreased 2.4 percent from the fourth quarter of 2006.
Data revenues for the first quarter of 2007 were up 12.7 percent when compared to first quarter 2006 and down 3.9 percent from the fourth quarter of 2006. Data revenues decreased sequentially primarily due to a one time billing adjustment in the fourth quarter of 2006.
Commercial
Commercial revenues decreased 7.9 percent to $24.1 million as compared to $26.1 million in the first quarter of 2006 and decreased 4.8 percent from $25.3 million in the fourth quarter of 2006. The decrease in commercial revenue when compared to the prior year is less than the decline in service revenues from a large customer. Rate compression in the first quarter was mostly offset by an increase in minutes as compared to the fourth quarter of 2006.
Growth in video and wireless revenues for the first quarter were offset by a seasonal decline in advertising and a revenue elimination effect resulting from the consolidation of AKD as compared to the fourth quarter of 2006.
Basic commercial video customers increased by 300 subscribers from the prior year and 500 subscribers when compared to the fourth quarter of 2006. Commercial video customers are primarily hotel video customers.
Managed Broadband
Managed broadband revenues totaled $6.9 million in the first quarter of 2007, an increase of 11.5 percent from $6.2 million in the first quarter of 2006. Revenue remained unchanged from the $6.9 million in the fourth quarter of 2006.
Other Items
Total selling, general and administrative expenses (SG&A) increased 17.6 percent to $48.5 million as compared to $41.3 million in the first quarter of 2006 and increased 5.4 percent from the fourth quarter of 2006. The increase in SG&A from the prior year was due primarily to the consolidation of AKD and a $1.1 million cost to repair a fiber break on the new Kodiak fiber. Excluding AKD, SG&A increased 9.5 percent as compared to the prior year and decreased 1.8 percent from the fourth quarter of 2006.
During the first quarter of 2007 GCIs capital expenditures totaled $29.4 million as compared to $35.7 million in the fourth quarter of 2006.
GCI will hold a conference call to discuss the quarters results on Thursday, May 10, 2007 beginning at 2 p.m. (Eastern). To access the briefing on May 10, dial 210-234-0003 (International callers should dial 888-793-1765) 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. A replay of the call will be available for 72-hours by dialing 800-926-7631, access code 7461 (International callers should dial 402-530-8088.)
GCI is the largest telecommunications company in Alaska. 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 companys expected results that are based on managements 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 GCIs control. Additional information concerning factors that could cause actual results to differ materially from those in the forward looking statements is contained in GCIs cautionary statement sections of Form 10-K and 10-Q filed with the Securities and Exchange Commission.
# # #
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | ||||
CONSOLIDATED BALANCE SHEETS | ||||
|
|
|
|
|
|
|
(Unaudited) |
|
|
(Amounts in thousands) |
|
March 31, |
|
December 31, |
Assets |
|
2007 |
|
2006 |
|
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
9,734 |
|
57,647 |
Restricted cash |
|
- |
|
4,612 |
|
|
|
|
|
Receivables |
|
77,515 |
|
78,811 |
Less allowance for doubtful receivables |
|
2,629 |
|
2,922 |
Net receivables |
|
74,886 |
|
75,889 |
|
|
|
|
|
Deferred income taxes, net |
|
17,675 |
|
20,685 |
Prepaid expenses |
|
7,164 |
|
5,729 |
Inventories |
|
4,933 |
|
3,362 |
Property held for sale |
|
2,279 |
|
2,316 |
Notes receivable from related parties |
|
69 |
|
1,080 |
Other current assets |
|
1,018 |
|
1,988 |
Total current assets |
|
117,758 |
|
173,308 |
|
|
|
|
|
Property and equipment in service, net of depreciation |
|
466,266 |
|
454,879 |
Construction in progress |
|
40,010 |
|
29,994 |
Net property and equipment |
|
506,276 |
|
484,873 |
|
|
|
|
|
Cable certificates |
|
191,565 |
|
191,565 |
Goodwill |
|
42,181 |
|
42,181 |
Wireless certificates |
|
26,914 |
|
1,497 |
Other intangible assets, net of amortization |
|
11,210 |
|
7,011 |
Deferred loan and senior notes costs, net of amortization |
|
6,917 |
|
7,091 |
Other assets |
|
6,322 |
|
7,133 |
Total other assets |
|
285,109 |
|
256,478 |
Total assets |
$ |
909,143 |
|
914,659 |
|
|
|
|
|
|
|
|
|
(Continued) |
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | ||||
CONSOLIDATED BALANCE SHEETS | ||||
(Continued) | ||||
|
|
|
|
|
|
|
(Unaudited) |
|
|
(Amounts in thousands) |
|
March 31, |
|
December 31, |
Liabilities and Stockholders' Equity |
|
2007 |
|
2006 |
|
|
|
|
|
Current liabilities: |
|
|
|
|
Current maturities of obligations under long-term debt and capital leases |
$ |
1,832 |
|
1,792 |
Accounts payable |
|
28,863 |
|
28,404 |
Deferred revenue |
|
16,458 |
|
16,566 |
Accrued payroll and payroll related obligations |
|
14,561 |
|
14,598 |
Accrued liabilities |
|
9,727 |
|
8,377 |
Accrued interest |
|
2,949 |
|
8,710 |
Subscriber deposits |
|
721 |
|
489 |
Total current liabilities |
|
75,111 |
|
78,936 |
|
|
|
|
|
Long-term debt |
|
477,947 |
|
487,737 |
Obligations under capital leases, excluding current maturities |
|
2,242 |
|
2,229 |
Obligation under capital lease due to related party, excluding current |
|
541 |
|
561 |
Deferred income taxes, net of deferred income tax benefit |
|
85,270 |
|
86,998 |
Minority interest |
|
6,502 |
|
- |
Other liabilities |
|
12,845 |
|
12,725 |
Total liabilities |
|
660,458 |
|
669,186 |
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
Stockholders equity: |
|
|
|
|
Common stock (no par): |
|
|
|
|
Class A. Authorized 100,000 shares; issued 50,315 and 50,191 |
|
155,888 |
|
157,502 |
Class B. Authorized 10,000 shares; issued 3,258 and 3,370 shares at |
|
2,752 |
|
2,846 |
Less cost of 250 and 258 Class A and Class B common shares held in |
|
(1,391) |
|
(1,436) |
Paid-in capital |
|
21,801 |
|
20,641 |
Notes receivable with related parties issued upon stock option exercise |
|
- |
|
(738) |
Retained earnings |
|
69,635 |
|
66,658 |
Total stockholders' equity |
|
248,685 |
|
245,473 |
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
909,143 |
|
914,659 |
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | ||||
CONSOLIDATED INCOME STATEMENT | ||||
| ||||
|
(Unaudited) |
| ||
|
Three Months Ended |
| ||
|
March 31, |
| ||
(Amounts in thousands, except per share amounts) |
2007 |
|
2006 (as amended) |
|
|
|
|
|
|
Revenues |
$ 124,579 |
|
112,822 |
|
|
|
|
|
|
Cost of goods sold (exclusive of depreciation and amortization shown |
43,113 |
|
36,184 |
|
Selling, general and administrative expenses |
48,524 |
|
41,256 |
|
Depreciation and amortization expense |
21,454 |
|
20,161 |
|
Operating income |
11,488 |
|
15,221 |
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
Interest expense |
(8,700) |
|
(8,554) |
|
Interest income |
184 |
|
157 |
|
Amortization of loan and senior notes fees |
(180) |
|
(251) |
|
Other |
13 |
|
(113) |
|
Other expense, net |
(8,683) |
|
(8,761) |
|
|
|
|
|
|
Income before income taxes and cumulative effect of a change in |
2,805 |
|
6,460 |
|
|
|
|
|
|
Income tax expense |
1,275 |
|
3,210 |
|
|
|
|
|
|
Income before cumulative effect of a change in accounting principle |
1,530 |
|
3,250 |
|
|
|
|
|
|
Cumulative effect of a change in accounting principle, net of income tax |
- |
|
64 |
|
|
|
|
|
|
Net income available to common shareholders |
$ 1,530 |
|
3,314 |
|
|
|
|
|
|
Basic net income available to common shareholders per common share: |
|
|
|
|
Income available to common shareholders before cumulative effect |
$ 0.03 |
|
0.06 |
|
Cumulative effect of a change in accounting principle |
- |
|
- |
|
Net income available to common shareholders |
$ 0.03 |
|
0.06 |
|
|
|
|
|
|
Diluted net income available to common shareholders per common share: |
|
|
|
|
Income available to common shareholders before cumulative effect |
$ 0.02 |
|
0.06 |
|
Cumulative effect of a change in accounting principle |
- |
|
- |
|
Net income available to common shareholders |
$ 0.02 |
|
0.06 |
|
|
|
|
|
|
Common shares used to calculate basic EPS |
53,260 |
|
54,561 |
|
|
|
|
|
|
Common shares used to calculate diluted EPS |
54,940 |
|
56,217 |
|
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | |||||||||||
SUPPLEMENTAL SCHEDULES | |||||||||||
(Unaudited) | |||||||||||
(Amounts in thousands) |
|
|
|
|
|
|
|
|
|
| |
|
First Quarter 2007 |
|
First Quarter 2006 (as amended) | ||||||||
|
|
Network |
|
Managed |
|
|
|
Network |
|
Managed |
|
|
Consumer |
Access |
Commercial |
Broadband |
Totals |
|
Consumer |
Access |
Commercial |
Broadband |
Totals |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Voice |
$ 11,271 |
24,437 |
7,778 |
- |
43,486 |
|
11,311 |
24,485 |
8,023 |
- |
43,819 |
Video |
23,631 |
- |
1,766 |
- |
25,397 |
|
22,003 |
- |
1,726 |
- |
23,729 |
Data |
7,874 |
15,034 |
13,926 |
6,920 |
43,754 |
|
6,961 |
13,338 |
15,910 |
6,208 |
42,417 |
Wireless |
10,494 |
856 |
592 |
- |
11,942 |
|
2,388 |
- |
469 |
- |
2,857 |
Total |
53,270 |
40,327 |
24,062 |
6,920 |
124,579 |
|
42,663 |
37,823 |
26,128 |
6,208 |
112,822 |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods |
20,421 |
9,498 |
11,609 |
1,585 |
43,113 |
|
15,923 |
8,776 |
10,424 |
1,061 |
36,184 |
|
|
|
|
|
|
|
|
|
|
|
|
Contribution |
32,849 |
30,829 |
12,453 |
5,335 |
81,466 |
|
26,740 |
29,047 |
15,704 |
5,147 |
76,638 |
|
|
|
|
|
|
|
|
|
|
|
|
Less SG&A |
23,405 |
11,866 |
9,645 |
3,608 |
48,524 |
|
19,042 |
9,632 |
9,277 |
3,305 |
41,256 |
Add other |
6 |
5 |
2 |
- |
13 |
|
- |
- |
- |
(113) |
(113) |
EBITDA |
9,450 |
18,968 |
2,810 |
1,727 |
32,955 |
|
7,698 |
19,415 |
6,427 |
1,729 |
35,269 |
|
|
|
|
|
|
|
|
|
|
|
|
Add share-based |
356 |
349 |
237 |
85 |
1,027 |
|
623 |
667 |
393 |
130 |
1,813 |
EBITDA, as |
$ 9,806 |
19,317 |
3,047 |
1,812 |
33,982 |
|
8,321 |
20,082 |
6,820 |
1,859 |
37,082 |
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | |||||||||||
SUPPLEMENTAL SCHEDULES | |||||||||||
(Unaudited) | |||||||||||
(Amounts in thousands) |
|
|
|
|
|
|
|
|
|
| |
|
First Quarter 2007 |
|
Fourth Quarter 2006 | ||||||||
|
|
Network |
|
Managed |
|
|
|
Network |
|
Managed |
|
|
Consumer |
Access |
Commercial |
Broadband |
Totals |
|
Consumer |
Access |
Commercial |
Broadband |
Totals |
Revenues |
|
|
|
|
|
|
|
|
|
|
|
Voice |
$ 11,271 |
24,437 |
7,778 |
- |
43,486 |
|
11,182 |
26,734 |
7,838 |
- |
45,754 |
Video |
23,631 |
- |
1,766 |
- |
25,397 |
|
23,410 |
- |
2,212 |
- |
25,622 |
Data |
7,874 |
15,034 |
13,926 |
6,920 |
43,754 |
|
7,737 |
15,638 |
14,443 |
6,888 |
44,706 |
Wireless |
10,494 |
856 |
592 |
- |
11,942 |
|
4,493 |
- |
784 |
- |
5,277 |
Total |
53,270 |
40,327 |
24,062 |
6,920 |
124,579 |
|
46,822 |
42,372 |
25,277 |
6,888 |
121,359 |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods |
20,421 |
9,498 |
11,609 |
1,585 |
43,113 |
|
17,409 |
9,824 |
11,938 |
1,169 |
40,340 |
|
|
|
|
|
|
|
|
|
|
|
|
Contribution |
32,849 |
30,829 |
12,453 |
5,335 |
81,466 |
|
29,413 |
32,548 |
13,339 |
5,719 |
81,019 |
|
|
|
|
|
|
|
|
|
|
|
|
Less SG&A |
23,405 |
11,866 |
9,645 |
3,608 |
48,524 |
|
21,885 |
11,499 |
10,122 |
2,508 |
46,014 |
Add other |
6 |
5 |
2 |
- |
13 |
|
- |
- |
- |
114 |
114 |
EBITDA |
9,450 |
18,968 |
2,810 |
1,727 |
32,955 |
|
7,528 |
21,049 |
3,217 |
3,325 |
35,119 |
|
|
|
|
|
|
|
|
|
|
|
|
Add share-based |
356 |
349 |
237 |
85 |
1,027 |
|
591 |
858 |
368 |
139 |
1,956 |
EBITDA, as |
$ 9,806 |
19,317 |
3,047 |
1,812 |
33,982 |
|
8,119 |
21,907 |
3,585 |
3,464 |
37,075 |
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | ||||||||||
KEY PERFORMANCE INDICATORS | ||||||||||
(Unaudited) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2007 |
|
March 31, 2007 | ||
|
|
|
|
|
|
as compared to |
|
as compared to | ||
|
|
March 31, |
March 31, |
December 31, |
|
March 31, |
December 31, |
|
March 31, |
December 31, |
|
|
2007 |
2006 |
2006 |
|
2006 |
2006 |
|
2006 |
2006 |
Consumer |
|
|
|
|
|
|
|
|
| |
Voice |
|
|
|
|
|
|
|
|
| |
|
Long-distance subscribers |
89,600 |
93,800 |
89,800 |
|
(4,200) |
(200) |
|
-4.5% |
-0.2% |
|
Total local access lines in service |
67,400 |
68,600 |
66,200 |
|
(1,200) |
1,200 |
|
-1.7% |
1.8% |
|
Local access lines in service on GCI facilities |
37,400 |
24,500 |
31,400 |
|
12,900 |
6,000 |
|
52.7% |
19.1% |
|
|
|
|
|
|
|
|
|
|
|
Video |
|
|
|
|
|
|
|
|
| |
|
Basic subscribers |
124,500 |
122,100 |
124,000 |
|
2,400 |
500 |
|
2.0% |
0.4% |
|
Digital programming tier subscribers |
60,600 |
54,900 |
58,700 |
|
5,700 |
1,900 |
|
10.4% |
3.2% |
|
HD/DVR converter boxes |
34,600 |
16,200 |
29,200 |
|
18,400 |
5,400 |
|
113.7% |
18.5% |
|
Homes passed |
220,100 |
216,000 |
219,900 |
|
4,100 |
200 |
|
1.9% |
0.1% |
|
|
|
|
|
|
|
|
|
|
|
Data |
|
|
|
|
|
|
|
|
| |
|
Cable modem subscribers |
81,300 |
74,000 |
78,500 |
|
7,300 |
2,800 |
|
9.9% |
3.6% |
|
|
|
|
|
|
|
|
|
|
|
Wireless |
|
|
|
|
|
|
|
|
| |
|
Wireless lines in service |
60,000 |
17,000 |
24,400 |
|
43,000 |
35,600 |
|
252.9% |
145.9% |
|
|
|
|
|
|
|
|
|
|
|
Network Access Services |
|
|
|
|
|
|
|
|
| |
Voice: |
|
|
|
|
|
|
|
|
| |
|
Total ISP access lines in service |
3,100 |
3,300 |
3,100 |
|
(200) |
- |
|
-6.1% |
0.0% |
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
| |
Voice: |
|
|
|
|
|
|
|
|
| |
|
Long-distance subscribers |
11,100 |
10,400 |
11,100 |
|
700 |
- |
|
6.7% |
0.0% |
|
Total local access lines in service |
42,100 |
40,600 |
41,900 |
|
1,500 |
200 |
|
3.7% |
0.5% |
|
Local access lines in service on GCI facilities |
9,100 |
7,200 |
8,400 |
|
1,900 |
700 |
|
26.4% |
8.3% |
|
|
|
|
|
|
|
|
|
|
|
Video |
|
|
|
|
|
|
|
|
| |
|
Hotels and mini-headend |
13,600 |
13,900 |
13,300 |
|
(300) |
300 |
|
-2.2% |
2.3% |
|
Basic subscribers |
2,100 |
1,500 |
1,900 |
|
600 |
200 |
|
40.0% |
10.5% |
|
Total basic subscribers |
15,700 |
15,400 |
15,200 |
|
300 |
500 |
|
1.9% |
3.3% |
|
|
|
|
|
|
|
|
|
|
|
Data |
|
|
|
|
|
|
|
|
| |
|
Cable modem subscribers |
8,000 |
6,900 |
7,800 |
|
1,100 |
200 |
|
15.9% |
2.6% |
|
|
|
|
|
|
|
|
|
|
|
Wireless |
|
|
|
|
|
|
|
|
| |
|
Wireless lines in service |
6,200 |
3,100 |
4,600 |
|
3,100 |
1,600 |
|
100.0% |
34.8% |
|
|
|
|
|
|
|
|
|
|
|
Broadband |
|
|
|
|
|
|
|
|
| |
|
SchoolAccess® customers |
48 |
47 |
48 |
|
1 |
- |
|
2.1% |
0.0% |
|
Rural health customers |
21 |
21 |
21 |
|
- |
- |
|
0.0% |
0.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2007 |
|
March 31, 2007 | |||
|
|
Three Months Ended |
|
as Compared to |
|
as Compared to | ||||
|
|
March 31, |
March 31, |
December 31, |
|
March 31, |
December 31, |
|
March 31, |
December 31, |
|
|
2007 |
2006 |
2006 |
|
2006 |
2006 |
|
2006 |
2006 |
Consumer |
|
|
|
|
|
|
|
|
| |
Voice |
|
|
|
|
|
|
|
|
| |
|
Long-distance minutes carried |
34.2 |
36.9 |
35.0 |
|
(2.7) |
(0.8) |
|
-7.3% |
-2.3% |
|
|
|
|
|
|
|
|
|
|
|
Video |
|
|
|
|
|
|
|
|
| |
|
Average monthly gross revenue per |
$ 63.38 |
$ 60.64 |
$ 63.44 |
|
$ 2.74 |
$ (0.06) |
|
4.5% |
-0.1% |
|
|
|
|
|
|
|
|
|
|
|
Wireless |
|
|
|
|
|
|
|
|
| |
|
Average monthly gross revenue per |
$ 53.59 |
$ 44.72 |
$ 64.58 |
|
$ 8.87 |
$ (10.99) |
|
19.8% |
-17.0% |
|
|
|
|
|
|
|
|
|
|
|
Network Access Services |
|
|
|
|
|
|
|
|
| |
Voice |
|
|
|
|
|
|
|
|
| |
|
Long-distance minutes carried |
315.8 |
288.0 |
323.4 |
|
27.8 |
(7.6) |
|
9.7% |
-2.4% |
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
| |
Voice: |
|
|
|
|
|
|
|
|
| |
|
Long-distance minutes carried |
32.9 |
35.1 |
30.8 |
|
(2.2) |
2.1 |
|
-6.2% |
6.8% |
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
| |
|
Long-distance minutes carried |
382.9 |
360.0 |
389.2 |
|
22.9 |
(6.3) |
|
6.5% |
-1.6% |
General Communication, Inc.
Non-GAAP Financial Reconciliation Schedule
(Unaudited, Amounts in Millions)
|
|
Three Months Ended | ||||
|
|
March 31, |
|
March 31, |
|
December 31, 2006 |
Net income available to common shareholders |
$ |
1.5 |
|
3.3 |
|
3.1 |
Income tax expense |
|
1.3 |
|
3.2 |
|
2.6 |
Income before income tax expense |
|
2.8 |
|
6.5 |
|
5.7 |
Cumulative effect of a change in accounting principle, net of income tax benefit of $0.0 |
|
--- |
|
(0.1) |
|
--- |
Income before income tax expense and cumulative effect of a change in accounting principle |
|
2.8 |
|
6.4 |
|
5.7 |
|
|
|
|
|
|
|
Other (income) expense: |
|
|
|
|
|
|
Interest expense |
|
8.7 |
|
8.6 |
|
8.2 |
Amortization of loan and senior notes fee expense |
|
0.2 |
|
0.3 |
|
0.2 |
Interest income |
|
(0.2) |
|
(0.1) |
|
(0.4) |
Other |
|
--- |
|
--- |
|
(0.1) |
Other expense, net |
|
8.7 |
|
8.8 |
|
7.9 |
|
|
|
|
|
|
|
Operating income |
|
11.5 |
|
15.2 |
|
13.6 |
Depreciation and amortization expense |
|
21.5 |
|
20.1 |
|
21.4 |
Other |
|
--- |
|
--- |
|
0.1 |
|
|
|
|
|
|
|
EBITDA (Note 2) |
|
33.0 |
|
35.3 |
|
35.1 |
Share-based compensation expense |
|
1.0 |
|
1.8 |
|
2.0 |
EBITDA, as adjusted (Note 1) |
$ |
34.0 |
|
37.1 |
|
37.1 |
Notes:
(1) EBITDA (as defined in Note 2 below) before deducting share-based compensation expense.
(2) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the sum of Net Income, Interest Expense, Amortization of Loan and Senior Notes Fees, Interest Income, Income Tax Expense, and Depreciation and Amortization Expense. 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.