Exhibit 99.1
August 1, 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 SECOND QUARTER 2007 FINANCIAL RESULTS
|
|
• |
Consolidated revenue of $129.6 million |
|
|
• |
Net income of $5.0 million or $0.09 per diluted share |
|
|
• |
EBITDAS of $41.3 million |
ANCHORAGE, AK -- GCI (NASDAQ:GNCMA) today reported net income of $5.0 million, or earnings per diluted share of $0.09, for the second quarter of 2007. The company’s second quarter net income compares to income of $5.7 million, or earnings per diluted share of $0.10 in the same period of 2006.
GCI’s second quarter 2007 revenues totaled $129.6 million, an increase of 9.6 percent over the second quarter of 2006. Revenue increased across all of GCI’s business segments.
Second quarter 2007 earnings before interest, taxes, depreciation, amortization and share based compensation expense (EBITDAS) totaled $41.3 million. EBITDAS increased $0.6 million or 1.4 percent from the second quarter of 2006. EBITDAS growth in the consumer and managed broadband segments were partially offset by the decrease in EBITDAS from the network access and commercial segments.
Sequentially, revenues for the company increased $5.0 million over first quarter 2007 revenues of $124.6 million. Second quarter EBITDAS of $41.3 million increased 21.6 percent from $34.0 million in the first quarter of 2007. Sequential increases in revenue and EBITDAS occurred in all business segments. EBITDAS for the second quarter included a credit of $0.8 million reversing most of the $1.1 million fiber repair expensed in the first quarter of 2007. GCI is pursuing a claim to be fully reimbursed for the cost of the fiber repair. Second quarter EBITDAS also benefited from a $0.9 million favorable adjustment reducing Network Access cost of goods sold. The adjustment occurred after the refund of access costs for which negotiations were completed in the second quarter of 2007.
“We are pleased to report solid financial results and continued strong growth in our customer metrics for the second quarter,” said GCI president Ron Duncan. “We believe the second quarter’s results place the disappointing first quarter firmly behind us. We should be back on track with our financial goals by the end of this year.”
“Our statewide rollout of local phone service is just underway and has been well received judging by the many new customers choosing GCI Local Service. Existing customers are now able to include local service with their long distance, cable, wireless and internet choices in one of many bundled offerings that were previously available only in the larger markets of Anchorage, Fairbanks and Juneau. GCI looks forward to serving the entire state of Alaska with a complete offering of integrated communication services.”
Highlights
|
|
• |
Consumer revenues totaled $54.9 million, an increase of 24.1 percent over the prior year and an increase of 3.1 percent from the first quarter of 2007. The increases were across all product lines of voice, video, data and wireless sales. |
|
|
• |
Network access revenues totaled $41.6 million, an increase of 0.6 percent over the prior year and an increase of 3.2 percent when compared to the first quarter of 2007. The increases in revenues are due to an increase in data and wireless revenues. |
|
|
• |
Commercial revenues increased 0.4 percent from the prior year and 8.6 percent from the first quarter of 2007. The sequential increases were in all categories – voice, video, data and wireless. |
|
|
• |
GCI local access lines increased by 1,300 for the quarter. Consumer, network access and commercial local access lines totaled 113,900 at the end of the second quarter of 2007, representing an estimated 27 percent share of the total access lines market in Alaska. GCI began offering competitive local service to Chugiak in April, 2007 and Ketchikan in June, 2007. |
|
|
• |
GCI has provisioned 52,500 consumer and commercial access lines on its own facilities at the end of the second quarter of 2007, an increase of 6,000 lines over the first quarter of 2007. |
|
|
• |
GCI had 90,700 consumer and commercial cable modem access customers at the end of the second quarter of 2007, an increase of 1,400 over the 89,300 cable modem customers at the end of the first quarter 2007. GCI customers continue to migrate from dial up access service to cable modem. Average monthly revenue per cable modem totaled $32.54 for the second quarter of 2007 as compared to $32.94 for the first quarter of 2007. |
|
|
• |
GCI had 69,500 wireless subscribers (including the subscribers of its consolidated subsidiary, Alaska DigiTel), an increase of 3,400 subscribers from the first quarter of 2007. |
|
|
• |
During the second quarter of 2007 GCI purchased approximately 611,000 of its shares at an average cost of $13.04 per share. The company is authorized to purchase an additional $11.5 million of its shares through the end of the third quarter of 2007. |
Consumer
Consumer revenues increased 24.1 percent to $54.9 million as compared to $44.2 million in the second quarter of 2006 and increased 3.1 percent from the first quarter of 2007. The increase in revenue is primarily due to an increase in voice, video, data and wireless sales,including wireless sales from Alaska DigiTel.
Consumer voice revenues were relatively unchanged when compared to the prior year and the first quarter of 2007. Long distance minutes decreased, as expected, from the prior year and sequentially. Consumer local access lines in service for the second quarter were up approximately 700 lines compared to the second quarter of 2006. Access lines in the second quarter increased by 1,000 over the first quarter of 2007. GCI added 4,400 consumer access lines to its own facilities during the second quarter of 2007.
Consumer video revenue increased 7.1 percent over the prior year and increased slightly over the first quarter of 2007. 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 13.4 percent over the prior year and 4.5 percent over the first quarter of 2007. The increase in consumer data revenues is due to an increase in cable modem customers. GCI added 7,600 consumer cable modem customers over the prior year and 1,300 customers during the second quarter of 2007.
Network Access
Network access revenues increased 0.6 percent to $41.6 million as compared to $41.4 million in the second quarter of 2006 and increased 3.2 percent from the first quarter of 2007. The increases in revenue are primarily due to an increase in data and wireless revenues.
Voice revenues decreased 11.7 percent from the prior year and were relatively unchanged from the first quarter of 2007. The decrease in voice revenues from the prior year is primarily due to the effects of a scheduled rate reduction and fewer minutes carried on GCI’s network for other common carriers. Network access minutes decreased 4.2 percent to 317.7 million minutes for the second quarter of 2007 as compared to the second quarter of 2006. Minutes for the second quarter of 2007 increased 0.6 percent from the first quarter of 2007.
Data revenues for the second quarter of 2007 were up 14.3 percent when compared to second quarter 2006 and up 2.9 percent from the first quarter of 2007. The increase in data revenues over the prior year is primarily due to an increase in circuits sold.
Commercial
Commercial revenues increased 0.4 percent to $26.1 million as compared to $26.0 million in the second quarter of 2006 and increased 8.6 percent from $24.1 million in the first quarter of 2007. Commercial revenues were relatively unchanged from the prior year as the growth in wireless revenues was mostly offset by decreases in data revenues. Commercial experienced sequential revenue growth in voice, video, data and wireless.
Data revenue increases of $0.7 million from other commercial customers and a managed services project of $0.7 million in the second quarter of 2007 have offset $1.4 million of the $2.3 million decrease in quarterly revenues earned on GCI’s fiber optic cable from Prudhoe Bay to Valdez. Commercial data revenues in the second quarter of 2007 increased to $14.5 million, an increase of $0.6 million or 4.5 percent, when compared to the first quarter of 2007.
Basic commercial video customers decreased by 500 subscribers from the prior year and increased, as expected, by 1,800 subscribers when compared to the first quarter of 2007. The subscriber decrease in the second quarter of 2007 as compared to the prior year is due to a segment reclassification of commercial and consumer video customers. Commercial video customers are primarily hotel video customers.
Managed Broadband
Managed broadband revenues totaled $7.0 million in the second quarter of 2007, an increase of 5.3 percent from $6.6 million in the second quarter of 2006. Revenue was up slightly from the $6.9 million in the first quarter of 2007.
Other Items
Total selling, general and administrative expenses (SG&A) increased 15.8 percent to $47.5 million as compared to $41.0 million in the second quarter of 2006 and decreased 2.1 percent from the first quarter of 2007. The increase in SG&A from the prior year was primarily due to the consolidation of Alaska DigiTel and increases in labor and benefits costs. Excluding Alaska DigiTel and the effects of the Kodiak fiber repair, SG&A increased 9.3 percent as compared to the prior year and increased 1.6 percent from the first quarter of 2007.
During the second quarter of 2007 GCI’s capital expenditures totaled $43.6 million as compared to $29.4 million in the first quarter of 2007. GCI’s capital expenditures include those of Alaska DigiTel. The significant increase in capital expenditures is primarily due to GCI’s statewide local phone service initiatives.
GCI will hold a conference call to discuss the quarter’s results on Thursday, August 2, 2007 beginning at 2 p.m. (Eastern). To access the briefing on August 2, dial 800-988-9433 (International callers should dial 210-234-0002) 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 888-562-3875, access code 7461 (International callers should dial 203-369-3173.)
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 atwww.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.
# # #
|
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES |
||||
|
CONSOLIDATED BALANCE SHEETS |
||||
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
(Amounts in thousands) |
|
June 30, |
|
December 31, |
|
Assets |
|
2007 |
|
2006 |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ 8,337 |
|
57,647 |
|
Restricted cash |
|
- |
|
4,612 |
|
|
|
|
|
|
|
Receivables |
|
85,518 |
|
78,811 |
|
Less allowance for doubtful receivables |
|
2,644 |
|
2,922 |
|
Net receivables |
|
82,874 |
|
75,889 |
|
|
|
|
|
|
|
Deferred income taxes, net |
|
17,714 |
|
20,685 |
|
Prepaid expenses |
|
6,484 |
|
5,729 |
|
Inventories |
|
4,049 |
|
3,362 |
|
Property held for sale |
|
1,280 |
|
2,316 |
|
Notes receivable from related parties |
|
59 |
|
1,080 |
|
Other current assets |
|
1,196 |
|
1,988 |
|
Total current assets |
|
121,993 |
|
173,308 |
|
|
|
|
|
|
|
Property and equipment in service, net of depreciation |
|
479,758 |
|
454,879 |
|
Construction in progress |
|
49,686 |
|
29,994 |
|
Net property and equipment |
|
529,444 |
|
484,873 |
|
|
|
|
|
|
|
Cable certificates |
|
191,565 |
|
191,565 |
|
Goodwill |
|
42,181 |
|
42,181 |
|
Wireless certificates |
|
26,925 |
|
1,497 |
|
Other intangible assets, net of amortization |
|
11,703 |
|
7,011 |
|
Deferred loan and senior notes costs, net of amortization |
|
6,701 |
|
7,091 |
|
Other assets |
|
8,724 |
|
7,133 |
|
Total other assets |
|
287,799 |
|
256,478 |
|
Total assets |
|
$ 939,236 |
|
914,659 |
|
|
|
|
|
|
|
|
|
|
|
(Continued) |
|
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES |
||||
|
CONSOLIDATED BALANCE SHEETS |
||||
|
(Continued) |
||||
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
(Amounts in thousands) |
|
June 30, |
|
December 31, |
|
Liabilities and Stockholders' Equity |
|
2007 |
|
2006 |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Current maturities of obligations under long-term debt and capital leases |
|
$ 1,814 |
|
1,792 |
|
Accounts payable |
|
32,800 |
|
28,404 |
|
Deferred revenue |
|
16,121 |
|
16,566 |
|
Accrued payroll and payroll related obligations |
|
15,000 |
|
14,598 |
|
Accrued liabilities |
|
11,767 |
|
8,377 |
|
Accrued interest |
|
8,759 |
|
8,710 |
|
Subscriber deposits |
|
761 |
|
489 |
|
Total current liabilities |
|
87,022 |
|
78,936 |
|
|
|
|
|
|
|
Long-term debt |
|
492,530 |
|
487,737 |
|
Obligations under capital leases, excluding current maturities |
|
2,257 |
|
2,229 |
|
Obligation under capital lease due to related party,
excluding current |
|
519 |
|
561 |
|
Deferred income taxes |
|
89,208 |
|
86,998 |
|
Minority interest |
|
6,525 |
|
- |
|
Other liabilities |
|
12,931 |
|
12,725 |
|
Total liabilities |
|
690,992 |
|
669,186 |
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
Common stock (no par): |
|
|
|
|
|
Class A. Authorized 100,000 shares; issued 50,447
and 50,191 |
|
156,988 |
|
157,502 |
|
|
|
|
|
|
|
Class B. Authorized 10,000 shares; issued 3,257
and 3,370 shares at |
|
2,751 |
|
2,846 |
|
|
|
|
|
|
|
Less cost of 250 and 258 Class A and Class B
common shares held in |
|
(1,388) |
|
(1,436) |
|
|
|
|
|
|
|
Paid-in capital |
|
23,214 |
|
20,641 |
|
Notes receivable with related parties issued upon stock option exercise |
|
- |
|
(738) |
|
Retained earnings |
|
66,679 |
|
66,658 |
|
Total stockholders' equity |
|
248,244 |
|
245,473 |
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ 939,236 |
|
914,659 |
|
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES |
|||||||
|
CONSOLIDATED INCOME STATEMENT |
|||||||
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||
|
|
June 30, |
|
June 30, |
||||
|
(Amounts in thousands, except per share amounts) |
2007 |
|
2006 (as amended) |
|
2007 |
|
2006 (as amended) |
|
|
|
|
|
|
|
|
|
|
Revenues |
$ 129,592 |
|
118,220 |
|
$ 254,171 |
|
231,042 |
|
Cost of goods sold (exclusive of depreciation and
amortization shown |
42,238 |
|
38,358 |
|
85,351 |
|
74,542 |
|
Selling, general and administrative expenses |
47,486 |
|
40,992 |
|
96,010 |
|
82,248 |
|
Depreciation and amortization expense |
21,742 |
|
20,172 |
|
43,196 |
|
40,333 |
|
Operating income |
18,126 |
|
18,698 |
|
29,614 |
|
33,919 |
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
Interest expense |
(8,941) |
|
(8,696) |
|
(17,641) |
|
(17,250) |
|
Amortization of loan and senior notes fees |
(216) |
|
(251) |
|
(396) |
|
(502) |
|
Interest income |
161 |
|
482 |
|
345 |
|
639 |
|
Minority interest |
(24) |
|
282 |
|
(11) |
|
169 |
|
Other expense, net |
(9,020) |
|
(8,183) |
|
(17,703) |
|
(16,944) |
|
|
|
|
|
|
|
|
|
|
Income before income tax expense and cumulative effect
of a change in |
9,106 |
|
10,515 |
|
11,911 |
|
16,975 |
|
|
|
|
|
|
|
|
|
|
Income tax expense |
4,091 |
|
4,859 |
|
5,366 |
|
8,069 |
|
|
|
|
|
|
|
|
|
|
Income before cumulative effect of a change in accounting principle |
5,015 |
|
5,656 |
|
6,545 |
|
8,906 |
|
|
|
|
|
|
|
|
|
|
Cumulative effect of a change in accounting principle,
net of income tax |
- |
|
- |
|
- |
|
64 |
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders |
$ 5,015 |
|
5,656 |
|
$ 6,545 |
|
8,970 |
|
|
|
|
|
|
|
|
|
|
Basic net income available to common shareholders per common share: |
|
|
|
|
|
|
|
|
Income available to common shareholders before
cumulative effect |
$ 0.09 |
|
0.10 |
|
$ 0.12 |
|
0.16 |
|
Cumulative effect of a change in accounting principle |
- |
|
- |
|
- |
|
- |
|
Net income available to common shareholders |
$ 0.09 |
|
0.10 |
|
$ 0.12 |
|
0.16 |
|
|
|
|
|
|
|
|
|
|
Diluted net income available to common shareholders per common share: |
|
|
|
|
|
|
|
|
Income available to common shareholders before
cumulative effect |
$ 0.09 |
|
0.10 |
|
$ 0.11 |
|
0.16 |
|
Cumulative effect of a change in accounting principle |
- |
|
- |
|
- |
|
- |
|
Net income available to common shareholders |
$ 0.09 |
|
0.10 |
|
$ 0.11 |
|
0.16 |
|
|
|
|
|
|
|
|
|
|
Common shares used to calculate basic EPS |
53,201 |
|
55,688 |
|
53,230 |
|
55,526 |
|
|
|
|
|
|
|
|
|
|
Common shares used to calculate diluted EPS |
54,698 |
|
57,260 |
|
54,815 |
|
56,941 |
|
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES |
|||||||||||
|
SUPPLEMENTAL SCHEDULES |
|||||||||||
|
(Unaudited) |
|||||||||||
|
(Amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter 2007 |
|
Second Quarter 2006 (as amended) |
||||||||
|
|
|
Network |
|
Managed |
|
|
|
Network |
|
Managed |
|
|
|
Consumer |
Access |
Commercial |
Broadband |
Totals |
|
Consumer |
Access |
Commercial |
Broadband |
Totals |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Voice |
$ 11,564 |
24,577 |
8,002 |
- |
44,143 |
|
11,451 |
27,844 |
8,097 |
- |
47,392 |
|
Video |
23,907 |
- |
2,004 |
- |
25,911 |
|
22,329 |
- |
1,933 |
- |
24,262 |
|
Data |
8,229 |
15,468 |
14,546 |
6,954 |
45,197 |
|
7,258 |
13,533 |
15,400 |
6,607 |
42,798 |
|
Wireless |
11,195 |
1,570 |
1,576 |
- |
14,341 |
|
3,185 |
- |
583 |
- |
3,768 |
|
Total |
54,895 |
41,615 |
26,128 |
6,954 |
129,592 |
|
44,223 |
41,377 |
26,013 |
6,607 |
118,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods |
20,714 |
8,700 |
11,528 |
1,296 |
42,238 |
|
16,920 |
8,794 |
11,569 |
1,075 |
38,358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution |
34,181 |
32,915 |
14,600 |
5,658 |
87,354 |
|
27,303 |
32,583 |
14,444 |
5,532 |
79,862 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less SG&A |
23,760 |
10,420 |
9,887 |
3,419 |
47,486 |
|
18,887 |
9,366 |
9,049 |
3,690 |
40,992 |
|
Add other |
(10) |
(10) |
(4) |
- |
(24) |
|
- |
- |
- |
282 |
282 |
|
EBITDA |
10,411 |
22,485 |
4,709 |
2,239 |
39,844 |
|
8,416 |
23,217 |
5,395 |
2,124 |
39,152 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add share- based |
506 |
539 |
312 |
121 |
1,478 |
|
508 |
605 |
348 |
121 |
1,582 |
|
EBITDA, as |
$ 10,917 |
23,024 |
5,021 |
2,360 |
41,322 |
|
8,924 |
23,822 |
5,743 |
2,245 |
40,734 |
|
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES |
|||||||||||
|
SUPPLEMENTAL SCHEDULES |
|||||||||||
|
(Unaudited) |
|||||||||||
|
(Amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter 2007 |
|
First Quarter 2007 |
||||||||
|
|
|
Network |
|
Managed |
|
|
|
Network |
|
Managed |
|
|
|
Consumer |
Access |
Commercial |
Broadband |
Totals |
|
Consumer |
Access |
Commercial |
Broadband |
Totals |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Voice |
$ 11,564 |
24,577 |
8,002 |
- |
44,143 |
|
11,271 |
24,437 |
7,778 |
- |
43,486 |
|
Video |
23,907 |
- |
2,004 |
- |
25,911 |
|
23,631 |
- |
1,766 |
- |
25,397 |
|
Data |
8,229 |
15,468 |
14,546 |
6,954 |
45,197 |
|
7,874 |
15,034 |
13,926 |
6,920 |
43,754 |
|
Wireless |
11,195 |
1,570 |
1,576 |
- |
14,341 |
|
10,494 |
856 |
592 |
- |
11,942 |
|
Total |
54,895 |
41,615 |
26,128 |
6,954 |
129,592 |
|
53,270 |
40,327 |
24,062 |
6,920 |
124,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods |
20,714 |
8,700 |
11,528 |
1,296 |
42,238 |
|
20,421 |
9,498 |
11,609 |
1,585 |
43,113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution |
34,181 |
32,915 |
14,600 |
5,658 |
87,354 |
|
32,849 |
30,829 |
12,453 |
5,335 |
81,466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less SG&A |
23,760 |
10,420 |
9,887 |
3,419 |
47,486 |
|
23,405 |
11,866 |
9,645 |
3,608 |
48,524 |
|
Add other |
(10) |
(10) |
(4) |
- |
(24) |
|
6 |
5 |
2 |
- |
13 |
|
EBITDA |
10,411 |
22,485 |
4,709 |
2,239 |
39,844 |
|
9,450 |
18,968 |
2,810 |
1,727 |
32,955 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add share- based |
506 |
539 |
312 |
121 |
1,478 |
|
356 |
349 |
237 |
85 |
1,027 |
|
EBITDA, as |
$ 10,917 |
23,024 |
5,021 |
2,360 |
41,322 |
|
9,806 |
19,317 |
3,047 |
1,812 |
33,982 |
|
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES |
|||||||||||
|
SUPPLEMENTAL SCHEDULES |
|||||||||||
|
(Unaudited) |
|||||||||||
|
(Amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2007 |
|
Six Months Ended June 30, 2006 |
||||||||
|
|
|
Network |
|
Managed |
|
|
|
Network |
|
Managed |
|
|
|
Consumer |
Access |
Commercial |
Broadband |
Totals |
|
Consumer |
Access |
Commercial |
Broadband |
Totals |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Voice |
$ 22,835 |
48,848 |
15,780 |
- |
87,463 |
|
22,763 |
52,328 |
16,120 |
- |
91,211 |
|
Video |
47,538 |
- |
3,770 |
- |
51,308 |
|
44,331 |
- |
3,659 |
- |
47,990 |
|
Data |
16,103 |
30,397 |
28,472 |
13,874 |
88,846 |
|
14,219 |
26,872 |
31,310 |
12,815 |
85,216 |
|
Wireless |
21,689 |
2,697 |
2,168 |
- |
26,554 |
|
5,573 |
- |
1,052 |
- |
6,625 |
|
Total |
108,165 |
81,942 |
50,190 |
13,874 |
254,171 |
|
86,886 |
79,200 |
52,141 |
12,815 |
231,042 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods |
41,135 |
18,198 |
23,137 |
2,881 |
85,351 |
|
32,843 |
17,570 |
21,993 |
2,136 |
74,542 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contribution |
67,030 |
63,744 |
27,053 |
10,993 |
168,820 |
|
54,043 |
61,630 |
30,148 |
10,679 |
156,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less SG&A |
47,164 |
22,287 |
19,532 |
7,027 |
96,010 |
|
37,926 |
19,000 |
18,326 |
6,996 |
82,248 |
|
Add other |
(4) |
(5) |
(2) |
- |
(11) |
|
- |
- |
- |
169 |
169 |
|
EBITDA |
19,862 |
41,452 |
7,519 |
3,966 |
72,799 |
|
16,117 |
42,630 |
11,822 |
3,852 |
74,421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add share- based |
861 |
889 |
549 |
206 |
2,505 |
|
1,147 |
1,267 |
737 |
250 |
3,401 |
|
EBITDA, as |
$ 20,723 |
42,341 |
8,068 |
4,172 |
75,304 |
|
17,264 |
43,897 |
12,559 |
4,102 |
77,822 |
|
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES |
||||||||||
|
KEY PERFORMANCE INDICATORS |
||||||||||
|
(Unaudited) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2007 |
|
June 30, 2007 |
||
|
|
|
|
|
|
|
as compared to |
|
as compared to |
||
|
|
|
June 30, |
June 30, |
March 31, |
|
June 30, |
March 31, |
|
June 30, |
March 31, |
|
|
|
2007 |
2006 |
2007 |
|
2006 |
2007 |
|
2006 |
2007 |
|
Consumer |
|
|
|
|
|
|
|
|
|
|
|
Voice |
|
|
|
|
|
|
|
|
|
|
|
|
Long-distance subscribers |
90,500 |
92,800 |
89,600 |
|
(2,300) |
900 |
|
-2.5% |
1.0% |
|
|
Total local access lines in service |
68,400 |
67,700 |
67,400 |
|
700 |
1,000 |
|
1.0% |
1.5% |
|
|
Local access lines in service on GCI facilities |
41,800 |
25,700 |
37,400 |
|
16,100 |
4,400 |
|
62.6% |
11.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Video |
|
|
|
|
|
|
|
|
|
|
|
|
Basic subscribers |
124,700 |
121,900 |
124,500 |
|
2,800 |
200 |
|
2.3% |
0.2% |
|
|
Digital programming tier subscribers |
61,000 |
55,100 |
60,600 |
|
5,900 |
400 |
|
10.7% |
0.7% |
|
|
HD/DVR converter boxes |
40,200 |
18,800 |
34,600 |
|
21,400 |
5,600 |
|
113.9% |
16.2% |
|
|
Homes passed |
221,100 |
217,100 |
220,100 |
|
4,000 |
1,000 |
|
1.8% |
0.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Data |
|
|
|
|
|
|
|
|
|
|
|
|
Cable modem subscribers |
82,600 |
75,000 |
81,300 |
|
7,600 |
1,300 |
|
10.1% |
1.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless |
|
|
|
|
|
|
|
|
|
|
|
|
Wireless lines in service |
62,900 |
19,200 |
60,000 |
|
43,700 |
2,900 |
|
227.6% |
4.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Network Access Services |
|
|
|
|
|
|
|
|
|
|
|
Voice: |
|
|
|
|
|
|
|
|
|
|
|
|
Total ISP access lines in service |
2,600 |
3,300 |
3,100 |
|
(700) |
(500) |
|
-21.2% |
-16.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
Voice: |
|
|
|
|
|
|
|
|
|
|
|
|
Long-distance subscribers |
11,100 |
11,700 |
11,100 |
|
(600) |
- |
|
-5.1% |
0.0% |
|
|
Total local access lines in service |
42,900 |
40,400 |
42,100 |
|
2,500 |
800 |
|
6.2% |
1.9% |
|
|
Local access lines in service on GCI facilities |
10,700 |
7,300 |
9,100 |
|
3,400 |
1,600 |
|
46.6% |
17.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Video |
|
|
|
|
|
|
|
|
|
|
|
|
Hotels and mini-headend |
15,600 |
16,500 |
13,600 |
|
(900) |
2,000 |
|
-5.5% |
14.7% |
|
|
Basic subscribers |
1,900 |
1,500 |
2,100 |
|
400 |
(200) |
|
26.7% |
-9.5% |
|
|
Total basic subscribers |
17,500 |
18,000 |
15,700 |
|
(500) |
1,800 |
|
-2.8% |
11.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Data |
|
|
|
|
|
|
|
|
|
|
|
|
Cable modem subscribers |
8,100 |
7,100 |
8,000 |
|
1,000 |
100 |
|
14.1% |
1.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless |
|
|
|
|
|
|
|
|
|
|
|
|
Wireless lines in service |
6,700 |
3,700 |
6,200 |
|
3,000 |
500 |
|
81.1% |
8.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Broadband |
|
|
|
|
|
|
|
|
|
|
|
|
SchoolAccess® customers |
48 |
45 |
48 |
|
3 |
- |
|
6.7% |
0.0% |
|
|
ConnectMD® customers |
21 |
21 |
21 |
|
- |
- |
|
0.0% |
0.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2007 |
|
June 30, 2007 |
|||
|
|
|
Three Months Ended |
|
as Compared to |
|
as Compared to |
||||
|
|
|
June 30, |
June 30, |
March 31, |
|
June 30, |
March 31, |
|
June 30, |
March 31, |
|
|
|
2007 |
2006 |
2007 |
|
2006 |
2007 |
|
2006 |
2007 |
|
Consumer |
|
|
|
|
|
|
|
|
|
|
|
Voice |
|
|
|
|
|
|
|
|
|
|
|
|
Long-distance minutes carried |
33.6 |
35.9 |
34.2 |
|
(2.3) |
(0.6) |
|
-6.4% |
-1.8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Video |
|
|
|
|
|
|
|
|
|
|
|
|
Average monthly gross revenue per |
$ 63.79 |
$ 60.92 |
$ 63.38 |
|
$ 2.87 |
$ 0.41 |
|
4.7% |
0.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Wireless |
|
|
|
|
|
|
|
|
|
|
|
|
Average monthly gross revenue per |
$ 55.25 |
$ 49.16 |
$ 53.59 |
|
$ 6.09 |
$ 1.66 |
|
12.4% |
3.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Network Access Services |
|
|
|
|
|
|
|
|
|
|
|
Voice |
|
|
|
|
|
|
|
|
|
|
|
|
Long-distance minutes carried |
317.7 |
331.5 |
315.8 |
|
(13.8) |
1.9 |
|
-4.2% |
0.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
Voice: |
|
|
|
|
|
|
|
|
|
|
|
|
Long-distance minutes carried |
34.1 |
34.4 |
32.9 |
|
(0.3) |
1.2 |
|
-0.8% |
3.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
Long-distance minutes carried |
385.4 |
401.8 |
382.9 |
|
(16.4) |
2.5 |
|
-4.0% |
0.7% |
General Communication, Inc.
Non-GAAP Financial Reconciliation Schedule
(Unaudited, Amounts in Millions)
|
|
|
Three Months Ended |
||||
|
|
|
June 30, |
|
June 30, |
|
March 31, 2007 |
|
Net income available to common shareholders |
$ |
5.0 |
|
5.7 |
|
1.5 |
|
Income tax expense |
|
4.1 |
|
4.9 |
|
1.3 |
|
Income before income tax expense |
|
9.1 |
|
10.6 |
|
2.8 |
|
|
|
|
|
|
|
|
|
Other (income) expense: |
|
|
|
|
|
|
|
Interest expense |
|
9.0 |
|
8.7 |
|
8.7 |
|
Amortization of loan and senior notes fee expense |
|
0.2 |
|
0.2 |
|
0.2 |
|
Interest income |
|
(0.2) |
|
(0.5) |
|
(0.2) |
|
Minority interest |
|
--- |
|
(0.3) |
|
--- |
|
Other expense, net |
|
9.0 |
|
8.1 |
|
8.7 |
|
|
|
|
|
|
|
|
|
Operating income |
|
18.1 |
|
18.7 |
|
11.5 |
|
Depreciation and amortization expense |
|
21.7 |
|
20.2 |
|
21.5 |
|
Minority interest |
|
--- |
|
0.3 |
|
--- |
|
|
|
|
|
|
|
|
|
EBITDA (Note 2) |
|
39.8 |
|
39.2 |
|
33.0 |
|
Share-based compensation expense |
|
1.5 |
|
1.5 |
|
1.0 |
|
EBITDAS (Note 1) |
$ |
41.3 |
|
40.7 |
|
34.0 |
|
|
|
Six Months Ended |
||
|
|
|
June 30, |
|
June 30, |
|
Net income available to common shareholders |
$ |
6.5 |
|
9.0 |
|
Cumulative effect of a change in accounting principle, net of income tax benefit of $0.0 |
|
--- |
|
(0.1) |
|
Income before income tax expense |
|
6.5 |
|
8.9 |
|
Income tax expense |
|
5.4 |
|
8.1 |
|
Income before income tax expense and cumulative effect of a change in accounting principle |
|
11.9 |
|
17.0 |
|
|
|
|
|
|
|
Other (income) expense: |
|
|
|
|
|
Interest expense |
|
17.6 |
|
17.3 |
|
Amortization of loan and senior notes fee expense |
|
0.4 |
|
0.5 |
|
Interest income |
|
(0.3) |
|
(0.7) |
|
Minority interest |
|
--- |
|
(0.2) |
|
Other expense, net |
|
17.7 |
|
16.9 |
|
|
|
|
|
|
|
Operating income |
|
29.6 |
|
33.9 |
|
Depreciation and amortization expense |
|
43.2 |
|
40.3 |
|
Minority interest |
|
--- |
|
0.2 |
|
|
|
|
|
|
|
EBITDA (Note 2) |
|
72.8 |
|
74.4 |
|
Share-based compensation expense |
|
2.5 |
|
3.4 |
|
EBITDAS (Note 1) |
$ |
75.3 |
|
77.8 |
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.