Exhibit 99.1
March 11, 2009
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 2008 FINANCIAL RESULTS

·  
Consolidated revenues of $575.4 million
·  
Adjusted EBITDA of $171.1 million
·  
Net loss of $1.9 million or ($0.04) per diluted share

ANCHORAGE, AK -- GCI (NASDAQ:GNCMA) today reported its 2008 results with revenues increasing to $575.4 million and earnings before interest, taxes, depreciation, amortization and adjusted for share-based compensation and non-cash contribution (adjusted EBITDA) increasing to $171.1 million. Revenues and adjusted EBITDA were record high results for the company. GCI’s results include only $1.6 million of amortization from fiber IRU agreements totaling $53.1 million for 2008. Cash receipts from these agreements totaled $46.0 million for the year.

GCI’s on-going capital investment and expansion program increased non-cash depreciation and amortization expense from the prior year by $26.8 million, an increase of 30.5 percent and resulted in a net loss of $1.9 million, or ($0.04) per diluted share for the year 2008. The 2008 net loss compares to net income of $13.7 million, or diluted earnings per share of $0.23, in 2007. GCI recorded a net loss of $4.4 million or ($0.09) per share on a diluted basis in the fourth quarter of 2008 that compares to net income of $2.6 million or $0.04 per share on a diluted basis for the fourth quarter of 2007.

GCI’s revenues for 2008 increased 10.6 percent to $575.4 million over 2007 revenues of $520.3 million. For the fourth quarter of 2008, revenues totaled $146.6 million as compared to $131.3 million in the fourth quarter of 2007, an increase of 11.7 percent. The annual and quarterly revenue increases were attributed to all business lines except for network access services. Network access revenues decreased, as expected, primarily due to the transition of AT&T Mobility traffic off of the GCI network. Revenues, as expected, were down 3.3 percent sequentially when compared to third quarter 2008 revenues of $151.7 million. The sequential decrease in revenue was primarily due to normal seasonality in the company’s voice products, an out of period Universal Service Fund (USF) payment received in the third quarter of 2008 and a fourth quarter of 2008 adjustment to certain USF revenues that were previously recorded.

Adjusted EBITDA for 2008 totaled $171.1 million, an increase of $17.4 million or 11.3 percent, over 2007 adjusted EBITDA of $153.7 million. Fourth quarter 2008 adjusted EBITDA totaled $39.9 million and compares to $38.8 million, an increase of 2.9 percent over the fourth quarter of 2007.

Sequentially, fourth quarter 2008 adjusted EBITDA totaled $39.9 million and compares to $47.8 million in the third quarter 2008. The decline in sequential adjusted EBITDA is due in part to network access services seasonality, an out of period USF payment received in the third quarter of 2008, and the incurrence of $5.5 million of unusual items including wireless transition expenses, certain increased selling, general and administrative expenses, and the aforementioned USF adjustment.

“2008 was a great year for our company,” said GCI president, Ron Duncan. “We had an ambitious agenda including the launch of a new satellite, the build out of our statewide wireless system, the transition of our wireless customers to a new network, the closing and integration of two acquisitions, the construction and turn up of two long haul regional fiber systems and the statewide expansion of our bundled service offerings. We achieved all of our goals for the year and exceeded our financial objectives.”

“We ended the year with a strong push in wireless adding 8,200 new customers in the fourth quarter of 2008 and crossing the 100,000 customer threshold in early 2009. We are more than three quarters of the way through the conversion of our existing wireless customer base and our strong sales momentum has continued into 2009.”

“Our 2008 results position us to attain our goal of $200 million of EBITDA this year. Our business continues to perform well because our customers have made GCI their preferred choice for voice, video, internet and now wireless services. Revenues from our retail services are growing strongly and have more than offset the price pressure and revenue compression that we have seen in our network access services business. We are leveraging the extensive statewide facilities that we built over 25 years to deliver more capacity across the state as our consumer and commercial customers find new uses and applications for bandwidth in every day life. With our extensive statewide investment GCI is uniquely positioned to deliver all of the communication needs for Alaska.”

“Alaska is weathering the worldwide economic storm well but it’s clear that some impact will be felt beginning with the summer tourist season and later on this year. The State will most likely need to tap some of its large cash reserves to balance the current fiscal year budget and to carry it through fiscal 2010 if energy prices don’t increase. If a global recovery fails to take hold in 2009 Alaska will feel increased adverse effects in 2010. While economic conditions should not impede our ability to achieve this year’s financial results, they could slow down our anticipated growth in subsequent years.”

GCI increased its 2008 guidance for revenues in the range of $560 million to $570 million and for adjusted EBITDA in excess of $170 million with the announcement of its third quarter results. GCI’s 2008 revenues of $575.4 million and adjusted EBITDA of $171.1 million exceeded the revised guidance.

GCI anticipates revenues of $615 million to $625 million and adjusted EBITDA of approximately $200 million for the year 2009. GCI also anticipates that it will generate free cash flow by the second half of 2009. As discussed in previous quarters, GCI will no longer be providing quarterly guidance but will instead, discuss whether the company is on track to meet its annual guidance.

Highlights
·  
GCI entered into fiber IRU agreements totaling $53.1 million for the year 2008. Cash receipts for these agreement totaled $46.0 million for the year 2008. The remaining cash payments were received in 2009. GCI amortized $1.6 million in deferred revenues from these agreements for the year 2008.

·  
Consumer revenues for 2008 totaled $255.6 million, an increase of 14.4 percent over 2007. Revenues increased across all product lines during 2008. Fourth quarter 2008 revenues of $65.7 million increased 13.2 percent over the prior year. The revenue increases were from strong growth in video, data and wireless sales.

·  
Network access revenues for 2008 totaled $153.8 million, a decrease of 5.8 percent as compared to 2007. The decrease is primarily attributable to the expected transition of AT&T Mobility off of our network in the second half of 2008. Fourth quarter 2008 revenues of $34.0 million decreased 12.4 percent from both the prior year and sequential quarters.

·  
Commercial revenues for 2008 totaled $114.7 million, an increase of 9.6 percent over 2007. Fourth quarter 2008 revenues of $30.5 million increased 12.8 percent over the prior year and increased 1.0 percent on a sequential basis.

·  
GCI local access lines totaled 140,800 at the end of the fourth quarter of 2008 representing an estimated 33 percent share of the total access lines market in Alaska. Access lines increased by 1,300 during the fourth quarter and increased by 20,700 lines for the year. The increase is due, in part, to the continued roll out of new local services market areas, further penetration of GCI’s bundled offerings in existing markets and the second quarter 2008 acquisition of United Utilities.

·  
GCI had provisioned 99,500 access lines representing 71 percent of its total access lines on its own facilities at the end of 2008, an increase of 36,300 lines over year end 2007 and an increase of 5,000 lines compared to the end of the third quarter of 2008.

·  
GCI had 103,300 consumer and commercial cable modem access customers at the end of the fourth quarter of 2008, an increase of 6,900 over the fourth quarter of 2007 and 2,200 sequentially over the third quarter of 2008. Average monthly revenue per cable modem totaled $40.74 for the fourth quarter of 2008 as compared to $39.23 for the third quarter of 2008, a sequential increase of 3.8 percent.

·  
GCI had 147,700 basic video subscribers at the end of 2008, an increase of 4,400 subscribers or 3.1 percent over 2007. GCI is one of few multiple system operators that has consistently added basic subscribers over the past five years.

·  
GCI had 96,300 wireless subscribers at the end of 2008, an increase of 8,200 subscribers over the third quarter of 2008. GCI added 19,000 wireless subscribers for the full year 2008.

Consumer
Consumer revenues for 2008 totaled $255.6 million, an improvement of 14.4 percent over 2007. Growth occurred across all product lines. Fourth quarter 2008 revenues of $65.7 million increased 13.2 percent over the prior year and decreased 1.3 percent sequentially. The year-over-year increases were from strong growth in video, data and wireless sales. The sequential decrease in revenues is primarily due to the receipt of out of period USF payments in the third quarter of 2008 and due to a fourth quarter adjustment to certain USF revenues that were previously recorded.

Consumer voice revenues totaled $47.0 million for the year 2008, an increase of 1.8 percent over 2007. Fourth quarter 2008 voice revenues of $11.5 million were stable when compared to the prior year quarter and were down slightly when compared to the third quarter of 2008. Growth in voice revenues for 2008 is primarily due to the increase in customers purchasing voice services in existing and newly opened markets. Consumer added 6,300 net local access lines during 2008.

Consumer long distance minutes for the year 2008 decreased 5.3 percent when compared to 2007. Fourth quarter 2008 long distance minutes declined 8.6 percent when compared to the fourth quarter of 2007 and increased 1.9 percent sequentially over the third quarter of 2008. The decrease in long distance minutes reflect national trends of wireless and internet substitution for traditional long distance wire line service.

Consumer video revenue totaled $105.2 million in 2008, an increase of 9.3 percent over 2007. Fourth quarter 2008 video revenues of $27.7 million increased 10.9 percent over the prior year and 5.5 percent sequentially. The increase in revenue is due in part to increases in subscribers and increases in video subscribers purchasing digital service and renting high definition/digital video recorder converters. Basic consumer video subscribers increased to 132,500, an increase of 4,500 subscribers or 3.5 percent for the year 2008 and increased sequentially by 1,300 subscribers.

Consumer data revenue totaled $42.7 million in 2008, an increase of 24.7 percent compared to 2007. Fourth quarter 2008 data revenues of $11.5 million increased 23.6 percent over the prior year and 6.7 percent sequentially. The increase in consumer data revenues is due to an increase in the number of cable modem customers as well as increasing average revenue per cable modem. GCI added 6,400 consumer cable modem customers over the prior year and 2,300 customers during the fourth quarter of 2008.

Consumer wireless revenues increased to $60.7 million, an increase of $13.9 million during 2008. The increase in wireless revenues is primarily due to an increase in the number of wireless customers.

Network Access
Network access revenues for 2008 totaled $153.8 million, a decrease of 5.8 percent from 2007. Fourth quarter 2008 revenues of $34.0 million decreased 12.4 percent from the prior year quarter and the sequential quarter. The decrease in revenue for 2008 is primarily attributable to the expected migration of AT&T Mobility traffic from the company’s network.

Voice revenues for 2008 totaled $79.7 million, a decrease of 17.7 percent compared to 2007. Fourth quarter 2008 voice revenues of $14.9 million decreased 32.8 percent from the prior year and decreased 24.2 percent sequentially. The annual and quarterly decrease in voice revenues is primarily due to the transition of AT&T Mobility traffic from the company’s network. The decline in sequential revenues is due in part to seasonality.

Data revenues for 2008 totaled $71.4 million, an increase of 16.7 percent compared to 2007. Fourth quarter 2008 revenue of $18.4 million increased 16.1 percent over the prior year and 1.6 percent sequentially.

Commercial
Commercial revenues for 2008 totaled $114.7 million, an increase of 9.6 percent over 2007. Commercial revenue increases were led by a $9.0 million increase in data revenues for 2008. Fourth quarter 2008 revenues of $30.5 million increased 12.8 percent over the prior year and increased 1.0 percent on a sequential basis.

Commercial data revenues in 2008 totaled $70.1 million, an increase of 14.8 percent over 2007. Fourth quarter 2008 data revenues of $19.1 million increased 15.4 percent over the prior year and increased 5.5 percent on a sequential basis.

Commercial data revenues in 2008 were comprised of $38.6 million in monthly recurring charges for data services and $31.5 million in charges billed on a time and materials basis largely for personnel providing on-site customer support. This latter category can vary significantly based on project activity. For 2008 monthly recurring revenues increased by $2.9 million when compared to 2007. Fourth quarter monthly recurring revenues of $9.9 million compared to $9.1 million in the fourth quarter of 2007 and $9.8 million in the third quarter of 2008.

Managed Broadband
Managed broadband revenues for 2008 totaled $37.0 million, an increase of 28.7 percent compared to 2007. Fourth quarter 2008 revenue of $10.1 million increased 33.7 percent over the prior year and decreased 1.9 percent sequentially.
 

 
Regulated Operations
Regulated operations revenues for 2008 totaled $14.3 million and its adjusted EBITDA totaled $3.6 million for 2008. Regulated operations has 12,100 local access lines at the end of the fourth quarter of 2008, a decrease of 200 access lines from the third quarter of 2008.
 

Other Items
Total selling, general and administrative expenses (SG&A) for 2008 totaled $210.3 million an increase of 19.7 percent as compared to 2007. Fourth quarter SG&A totaled $59.2 million, an increase of 34.7 percent from the fourth quarter of 2007, and 5.0 percent as compared to the third quarter 2008. The increase in SG&A expense is due in part to the United Utilities acquisition, increasing health care costs, costs associated with the conversion of wireless phones to our own facilities, and certain increased compensation expenses.

During 2008, capital expenditures, including a $98.6 million satellite capital lease, totaled $328.6 million as compared to $154.5 million in 2007.

GCI will hold a conference call to discuss its 2008 and fourth quarter results on Thursday, March 12, 2009 beginning at 2 p.m. (Eastern). To access the briefing on March 12, dial 800-779-1166 (International callers should dial 630-395-0256) 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 888-568-0043, access code 7461 (International callers should dial 203-369-3452.)

GCI is the largest telecommunications company in Alaska. The company’s cable plant, which provides voice, video, and broadband data services, passes 90 percent of Alaska households. GCI operates Alaska’s most extensive terrestrial / subsea fiber optic network which connects not only Anchorage but also Fairbanks, and Juneau / Southeast Alaska to the lower 48 states with a diversely routed, protected fiber network. The company’s satellite network provides communications services to small towns and communities throughout rural Alaska. GCI is now in the process of constructing Alaska’s first truly statewide mobile wireless network, which will seamlessly link urban and rural Alaska for the first time in the state’s history.

           A pioneer in bundled services, GCI is the top provider of voice, data, and video services to Alaska consumers with a 70 percent share of the consumer broadband market. GCI is also the leading provider of communications services to enterprise customers, particularly large enterprise customers with complex data networking needs. 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.

#    #    #

 
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
  
CONSOLIDATED BALANCE SHEETS
  
                   
                   
(Amounts in thousands)
  
(Unaudited)
              
   
December 31,
              
Assets
  
2008
          
2007
  
                   
Current assets:
                  
  Cash and cash equivalents
   $ 29,904             13,074  
                       
  Receivables
     113,136             97,913  
  Less allowance for doubtful receivables
     2,582             1,657  
     Net receivables
     110,554             96,256  
                       
  Deferred income taxes
     7,843             5,734  
  Inventories
     7,085             2,541  
  Prepaid expenses
     5,960             5,356  
  Investment securities
     1,563             -  
  Other current assets
     647             717  
       Total current assets
     163,556             123,678  
                       
Property and equipment in service, net of depreciation
     793,051             504,273  
Construction in progress
     54,098             69,409  
       Net property and equipment
     847,149             573,682  
                       
Cable certificates
     191,565             191,565  
Goodwill
     66,868             42,181  
Wireless licenses
     25,967             25,757  
Other intangible assets, net of amortization
     22,976             11,769  
Deferred loan and senior notes costs, net of amortization
     6,496             6,202  
Other assets
     10,724             9,399  
    Total other assets
     324,596             286,873  
       Total assets
   $ 1,335,301             984,233  
                       
                 
(Continued)
  
 
 
 
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
    
CONSOLIDATED BALANCE SHEETS
    
(Continued)
    
                       
                       
(Amounts in thousands)
  
(Unaudited)
                
   
December 31,
                
Liabilities, Minority Interest, and Stockholders' Equity
  
2008
          
2007
  
                       
Current liabilities:
                      
  Current maturities of obligations under long-term debt and capital leases
   $ 12,857             2,375  
  Accounts payable
     40,497             35,747  
  Accrued payroll and payroll related obligations
     22,632             16,329  
  Deferred revenue
     22,095             16,600  
  Accrued liabilities
     11,043             7,536  
  Accrued interest
     10,224             8,927  
  Subscriber deposits
     1,262             877  
     Total current liabilities
     120,610             88,391  
                       
Long-term debt
     708,406             536,115  
Obligations under capital leases, excluding current maturities
     94,029             2,290  
Obligation under capital lease due to related party, excluding current
  maturity
     1,868             469  
Deferred income taxes
     86,187             84,294  
Long-term deferred revenue
     49,998             845  
Other liabilities
     15,288             12,396  
       Total liabilities
     1,076,386             724,800  
                       
Minority interest
     -             6,478  
                       
Commitments and contingencies
                      
Stockholders’ equity:
                      
  Common stock (no par):
                      
    Class A.  Authorized 100,000 shares; issued 50,062 and 50,437
     shares at December 31, 2008 and 2007, respectively;
     outstanding 49,593 and 49,425 shares at December 31, 2008 and 2007,
     respectively
     151,262             155,980  
                       
    Class B.  Authorized 10,000 shares; issued 3,203 and 3,257 shares at
     December 31, 2008 and 2007, respectively; outstanding
     3,201 and 3,255 shares at December 31, 2008 and  2007, respectively;
     convertible on a share-per-share basis into Class A common stock
     2,706             2,751  
                       
    Less cost of 471 and 473 Class A and Class B common shares held in
      treasury at December 31, 2008 and 2007, respectively
     (2,462 )           (3,448 )
                       
  Paid-in capital
     27,233             20,132  
  Retained earnings
     80,176             77,540  
       Total stockholders' equity
     258,915             252,955  
                       
       Total liabilities, minority interest, and stockholders' equity
   $ 1,335,301             984,233  
 
 
 
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
  
CONSOLIDATED STATEMENTS OF OPERATIONS
        
YEARS ENDED DECEMBER 31, 2008, 2007 AND 2006
  
                   
   
(Unaudited)
              
(Amounts in thousands, except per share amounts)
  
2008
    
2007
    
2006
  
                   
Revenues
   $ 575,442       520,311       477,482  
                         
Cost of goods sold (exclusive of depreciation and amortization shown
  separately below)
     203,058       195,799       169,107  
Selling, general and administrative expenses
     210,306       175,752       158,950  
Depreciation and amortization expense
     114,369       87,615       82,099  
   Operating income
     47,709       61,145       67,326  
                         
Other income (expense):
                        
  Interest expense
     (48,303 )     (34,407 )     (34,413 )
  Interest and investment income
     576       544       1,841  
  Amortization and write-off of loan fees
     (2,060 )     (1,423 )     (964 )
  Minority Interest
     1,503       36       463  
  Other
     (217 )     -       -  
   Other expense, net
     (48,501 )     (35,250 )     (33,073 )
                         
   Income (loss) before income tax expense and cumulative effect of a
     change in accounting principle
     (792 )     25,895       34,253  
                         
Income tax expense
     1,077       12,162       15,797  
                         
   Income (loss) before cumulative effect of a change in accounting
     principle
     (1,869 )     13,733       18,456  
                         
Cumulative effect of a change in accounting principle, net of income tax
  expense of $44
     -       -       64  
                         
       Net income (loss)
   $ (1,869 )     13,733       18,520  
                         
Basic net income (loss) per share of Class A and Class B common stock:
                  
  Income (loss) before cumulative effect of a change in accounting
    principle
   $ (0.04 )     0.26       0.34  
  Cumulative effect of a change in accounting principle
     -       -       -  
       Net income (loss)
   $ (0.04 )     0.26       0.34  
                         
Diluted net income (loss) per share of Class A and Class B common stock:
                  
  Income (loss) before cumulative effect of a change in accounting
    principle
   $ (0.04 )     0.23       0.33  
  Cumulative effect of a change in accounting principle
     -       -       -  
       Net income (loss)
   $ (0.04 )     0.23       0.33  
                         
Common shares used to calculate basic EPS
     52,321       52,951       53,777  
                         
Common shares used to calculate diluted EPS
     52,321       54,581       55,325  
 
 
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
  
SUPPLEMENTAL SCHEDULES  
(Unaudited)  
(Amounts in thousands)
  
   
Fourth Quarter 2008
    
Fourth Quarter 2007
    
         
Network
    
Managed
    
Regulated
          
Network
    
Managed
    
Regulated
  
   
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
    
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
  
Revenues
                                                                        
  Voice
   $ 11,482       14,918       7,307       -       6,465       40,172     $ 11,501       22,192       7,021       -       -       40,714  
  Video
     27,682       -       2,636       -       -       30,318       24,955       -       2,100       -       -       27,055  
  Data
     11,465       18,439       19,135       10,094       -       59,133       9,277       15,882       16,576       7,549       -       49,284  
  Wireless
     15,022       621       1,381       -       -       17,024       12,243       704       1,300       -       -       14,247  
    Total
     65,651       33,978       30,459       10,094       6,465       146,647       57,976       38,778       26,997       7,549       -       131,300  
                                                                                                 
Cost of goods
  sold
     20,889       8,041       16,214       2,310       1,444       48,898       21,289       11,500       14,852       2,376       -       50,017  
                                                                                                 
    Contribution
     44,762       25,937       14,245       7,784       5,021       97,749       36,687       27,278       12,145       5,173       -       81,283  
                                                                                                 
Less SG&A
     30,165       12,493       9,910       3,548       3,114       59,230       22,459       10,045       8,840       2,638       -       43,982  
Add other
income
     (217 )     -       -       -               (217 )     4       4       2       -       -       10  
    EBITDA
     14,380       13,444       4,335       4,236       1,907       38,302       14,232       17,237       3,307       2,535       -       37,311  
                                                                                                 
Add share-based
compensation
     683       580       334       134       -       1,731       516       540       288       110       -       1,454  
Add non-cash
contribution adjustment
     (66 )     (59 )     (25 )     (10 )     -       (160 )     -       -       -       -       -       -  
Adjusted EBITDA
   $ 14,997       13,965       4,644       4,360       1,907       39,873     $ 14,748       17,777       3,595       2,645       -       38,765  
 
 
 
  GENERAL COMMUNICATION, INC. AND SUBSIDIARIES  
  SUPPLEMENTAL SCHEDULES  
  (Unaudited)  
(Amounts in thousands)
                                                              
   
Fourth Quarter 2008
    
Third Quarter 2008
  
         
Network
    
Managed
    
Regulated
          
Network
    
Managed
    
Regulated
  
   
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
    
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
  
Revenues
                                                                        
  Voice
   $ 11,482       14,918       7,307       -       6,465       40,172     $ 11,582       19,671       7,597       -       5,938       44,788  
  Video
     27,682       -       2,636       -       -       30,318       26,241       -       2,999       -       -       29,240  
  Data
     11,465       18,439       19,135       10,094       -       59,133       10,745       18,148       18,140       10,293       -       57,326  
  Wireless
     15,022       621       1,381       -       -       17,024       17,917       959       1,430       -       -       20,306  
    Total
     65,651       33,978       30,459       10,094       6,465       146,647       66,485       38,778       30,166       10,293       5,938       151,660  
                                                                                                 
Cost of goods
  sold
     20,889       8,041       16,214       2,310       1,444       48,898       20,574       10,501       15,283       2,651       1,392       50,401  
                                                                                                 
    Contribution
     44,762       25,937       14,245       7,784       5,021       97,749       45,911       28,277       14,883       7,642       4,546       101,259  
                                                                                                 
Less SG&A
     30,165       12,493       9,910       3,548       3,114       59,230       28,794       11,398       9,356       3,636       3,226       56,410  
Add other
income (expense)
     (217 )     -       -       -       -       (217 )     (184 )     (164 )     (71 )     -       -       (419 )
    EBITDA
     14,380       13,444       4,335       4,236       1,907       38,302       16,933       16,715       5,456       4,006       1,320       44,430  
                                                                                                 
Add share-based
compensation
     683       580       334       134       -       1,731       1,075       920       488       211       -       2,694  
Add non-cash
contribution adjustment
     (66 )     (59 )     (25 )     (10 )     -       (160 )     267       234       101       38       -       640  
Adjusted EBITDA
   $ 14,997       13,965       4,644       4,360       1,907       39,873     $ 18,275       17,869       6,045       4,255       1,320       47,764  
 
 
 
  GENERAL COMMUNICATION, INC. AND SUBSIDIARIES  
  SUPPLEMENTAL SCHEDULES  
  (Unaudited)  
(Amounts in thousands)
                                                              
   
Year Ended December 31, 2008
    
Year Ended December 31, 2007
  
         
Network
    
Managed
    
Regulated
          
Network
    
Managed
    
Regulated
  
   
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
    
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
  
Revenues
                                                                        
  Voice
   $ 47,042       79,744       29,398       -       14,282       170,466     $ 46,212       96,896       30,761       -       -       173,869  
  Video
     105,238       -       9,604       -       -       114,842       96,327       -       8,018       -       -       104,345  
  Data
     42,692       71,414       70,068       37,047       -       221,221       34,230       61,199       61,052       28,792       -       185,273  
  Wireless
     60,660       2,663       5,590       -       -       68,913       46,733       5,282       4,809       -       -       56,824  
    Total
     255,632       153,821       114,660       37,047       14,282       575,442       223,502       163,377       104,640       28,792       -       520,311  
                                                                                                 
Cost of goods
  sold
     89,853       40,326       59,480       10,265       3,134       203,058       88,699       43,868       53,492       9,740       -       195,799  
                                                                                                 
    Contribution
     165,779       113,495       55,180       26,782       11,148       372,384       134,803       119,509       51,148       19,052       -       324,512  
                                                                                                 
Less SG&A
     110,364       43,057       36,191       13,132       7,562       210,306       89,723       38,859       36,060       11,110       -       175,752  
Minority interest
     661       589       253       -       -       1,503       13       16       7       -       -       36  
Other expense
     (217 )     -       -       -       -       (217 )                                                
    EBITDA
     55,859       71,027       19,242       13,650       3,586       163,364       45,093       80,666       15,095       7,942       -       148,796  
                                                                                                 
Add share-based
compensation
     2,891       2,443       1,392       552       -       7,278       1,715       1,775       1,069       385       -       4,944  
Add non-cash
contribution     adjustment
     199       177       76       28       -       480       -       -       -       -       -       -  
Adjusted EBITDA
   $ 58,949       73,647       20,710       14,230       3,586       171,122     $ 46,808       82,441       16,164       8,327       -       153,740  
 
 
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS
(Unaudited)
                                           
                     
December 31, 2008
          
December 31, 2008
        
                     
as compared to
    
as compared to
  
   
December 31,
    
December 31,
    
September 30,
  
December 31,
    
September 30,
  
December 31,
    
September 30,
  
   
2008
    
2007
    
2008
    
2007
    
2008
    
2007
    
2008
  
Consumer
                                          
Voice
                                          
Long-distance subscribers
     88,600       89,900       89,300       (1,300 )     (700 )     -1.4 %     -0.8 %
Total local access lines in service
     80,700       74,400       79,200       6,300       1,500       8.5 %     1.9 %
Local access lines in service on GCI facilities
     68,700       50,700       64,300       18,000       4,400       35.5 %     6.8 %
                                                         
Video
                                                        
Basic subscribers
     132,500       128,000       131,200       4,500       1,300       3.5 %     1.0 %
Digital programming tier subscribers
     71,900       65,800       70,100       6,100       1,800       9.3 %     2.6 %
HD/DVR converter boxes
     67,800       50,200       62,900       17,600       4,900       35.1 %     7.8 %
Homes passed
     229,300       224,700       227,400       4,600       1,900       2.0 %     0.8 %
                                                         
Data
                                                        
Cable modem subscribers
     94,400       88,000       92,100       6,400       2,300       7.3 %     2.5 %
                                                         
Wireless
                                                        
Wireless lines in service
     88,700       70,000       81,200       18,700       7,500       26.7 %     9.2 %
                                                         
Network Access Services
                                                        
Data:
                                                        
Total ISP access lines in service
     1,800       2,600       1,800       (800 )     -       -30.8 %     0.0 %
                                                         
Commercial
                                                        
Voice:
                                                        
Long-distance subscribers
     9,700       10,500       10,200       (800 )     (500 )     -7.6 %     -4.9 %
Total local access lines in service
     46,200       43,100       46,200       3,100       -       7.2 %     0.0 %
Local access lines in service on GCI facilities
     18,700       12,500       17,900       6,200       800       49.6 %     4.5 %
                                                         
Video
                                                        
Hotels and mini-headend
  subscribers
     13,200       13,400       15,000       (200 )     (1,800 )     -1.5 %     -12.0 %
Basic subscribers
     2,000       1,900       2,000       100       -       5.3 %     0.0 %
   Total basic subscribers
     15,200       15,300       17,000       (100 )     (1,800 )     -0.7 %     -10.6 %
                                                         
Data
                                                        
Cable modem subscribers
     8,900       8,500       9,000       400       (100 )     4.7 %     -1.1 %
                                                         
Wireless
                                                        
Wireless lines in service
     7,600       7,300       6,900       300       700       4.1 %     10.1 %
                                                         
Regulated Operations
                                                        
Voice:
                                                        
Total local access lines in service
     12,100    
NA
       12,300    
NA
       (200 )  
NA
       -1.6 %
                                                         
                           
December 31, 2008
            
December 31, 2008
          
   
Three Months Ended
            
as Compared to
    
as Compared to
  
   
December 31,
    
December 31,
    
September 30,
  
December 31,
    
September 30,
  
December 31,
    
September 30,
  
   
2008
    
2007
    
2008
    
2007
    
2008
    
2007
    
2008
  
Consumer
                                                        
Voice
                                                        
Long-distance minutes carried
  (in millions)
     31.8       34.8       31.2       (3.0 )     0.6       -8.6 %     1.9 %
                                                         
Video
                                                        
Average monthly gross revenue per
  subscriber
   $ 69.67     $ 64.01     $ 67.00     $ 5.66     $ 2.67       8.8 %     4.0 %
                                                         
Wireless
                                                        
Average monthly gross revenue per
  subscriber
   $ 53.55     $ 60.26     $ 56.48     $ (6.71 )   $ (2.93 )     -11.1 %     -5.2 %
                                                         
Network Access Services
                                                        
Voice
                                                        
Long-distance minutes carried
  (in millions)
     194.1       295.6       255.8       (101.5 )     (61.7 )     -34.3 %     -24.1 %
                                                         
Commercial
                                                        
Voice:
                                                        
Long-distance minutes carried
  (in millions)
     30.5       30.7       33.3       (0.2 )     (2.8 )     -0.7 %     -8.4 %
                                                         
Total
                                                        
Long-distance minutes carried
  (in millions)
     256.4       361.1       320.3       (104.7 )     (63.9 )     -29.0 %     -20.0 %
                                                         
                           
December 31, 2008
            
December 31, 2008
          
   
Twelve Months Ended
    
as Compared to
    
as Compared to
  
   
December 31,
    
December 31,
    
December 31,
    
December 31,
  
   
2008
    
2007
            
2007
            
2007
          
Consumer
                                                        
Voice
                                                        
Long-distance minutes carried
  (in millions)
    
128.6
       135.8               (7.2 )             -5.3
%
        
                                                         
Network Access Services
                                                        
Voice
                                                        
Long-distance minutes carried
  (in millions)
     1,094.0       1,250.6               (156.6 )             -12.5 %        
                                                         
Commercial
                                                        
Voice:
                                                        
Long-distance minutes carried
  (in millions)
     129.5       131.3               (1.8 )             -1.4 %        
                                                         
Total
                                                        
Long-distance minutes carried
  (in millions)
     1,352.1       1,517.7               (165.6 )             -10.9 %        
 
 
General Communication, Inc.
Non-GAAP Financial Reconciliation Schedule
(Unaudited, Amounts in Millions) 
 

   
Three Months Ended
  
   
December 31,
2008
    
December 31,
2007
    
September 30,
2008
  
Net income (loss)
   $ (4.4 )     2.6       0.3  
Income tax expense
 (benefit)
     (3.7 )     2.3       1.5  
Income (loss) before income tax expense (benefit)
     (8.1 )     4.9       1.8  
                         
Other (income) expense:
                        
Interest expense
     15.0       8.9       13.7  
Amortization and write-off of loan fees
     0.6       0.3       0.5  
Interest and investment income
     0.3       (0.1 )     (0.4 )
Other
     0.2       ---       0.4  
Other expense, net
     16.1       9.1       14.2  
                         
Operating income
     8.0       14.0       16.0  
Depreciation and amortization expense
     30.5       23.3       28.9  
Other
     (0.2 )     ---       (0.4 )
                         
EBITDA (Note 2)
     38.3       37.3       44.5  
Share-based compensation expense
     1.7       1.5       2.7  
Non-cash contribution adjustment
     (0.1 )     ---       0.6  
Adjusted EBITDA (Note 1)
   $ 39.9       38.8       47.8  


   
Year Ended
  
   
December 31,
2008
    
December 31,
2007
  
Net income (loss)
   $ (1.9 )     13.7  
Income tax expense
     1.1       12.2  
Income (loss) before income tax expense
     (0.8 )     25.9  
                 
Other (income) expense:
                
Interest expense
     48.3       34.4  
Amortization and write-off of loan fees
     2.0       1.4  
Interest and investment income
     (0.5 )     (0.5 )
Minority interest
     (1.5 )     ---  
Other
     0.2          
Other expense, net
     48.5       35.3  
                 
Operating income
     47.7       61.2  
Depreciation and amortization expense
     114.4       87.6  
Minority interest
     1.5       ---  
Other
     (0.2 )        
                 
EBITDA (Note 2)
     163.4       148.8  
Share-based compensation expense
     7.3       4.9  
Non-cash contribution expense
     0.4       ---  
Adjusted EBITDA (Note 1)
   $ 171.1       153.7  

Notes:
 
(1) EBITDA (as defined in Note 2 below) before deducting share-based compensation expense and non-cash contribution adjustment.

 
(2) Earnings Before Interest, Taxes, Depreciation and Amortization is the sum of Net Income (Loss), Interest Expense, Amortization and Write-off of Loan Fees, Interest and Investment Income, Income Tax Expense, and Depreciation and Amortization Expense.  EBITDA is not presented as an alternative measure of net income (loss), 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.