Exhibit 99.1




May 6, 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 FIRST QUARTER 2009 FINANCIAL RESULTS

·  
Consolidated revenue of $148.7 million
·  
Adjusted EBITDA of $46.4 million
·  
Net income of $0.4 million or $0.00 per diluted share

ANCHORAGE, AK -- GCI (NASDAQ:GNCMA) today reported first quarter 2009 revenues of $148.7 million, an increase of 10.4 percent over the first quarter of 2008. First quarter 2009 earnings before interest, taxes, depreciation, amortization and adjusted for share-based compensation and non-cash contribution (adjusted EBITDA) totaled $46.4 million. Adjusted EBITDA increased $7.3 million or 18.5 percent from the first quarter of 2008. The increase in revenues and adjusted EBITDA was attributable to growth in all segments except network access. Network access revenues and EBITDA decreased, as expected, due to the transition of AT&T Mobility off of GCI’s network beginning in the third quarter of 2008.

GCI’s first quarter 2009 net income is $0.4 million, or earnings per diluted share of $0.00 and is unchanged from the same period of 2008.

First quarter 2009 revenues increased $2.0 million, an increase of 1.4 percent over total revenues of $146.6 million in the fourth quarter of 2008. Adjusted EBTIDA increased $6.6 million, or 16.5 percent, over adjusted EBITDA of $39.9 million, also in the fourth quarter of 2008.

“Driven by strong metrics across all categories GCI turned in its best ever first quarter with revenue increasing more than 10 percent, adjusted EBITDA up more than 18 percent and an increase of nearly 50,000 in total customer relationships," said GCI president Ron Duncan. “A data base correction after the quarter's end reduced wireless subscribers by 2,800 but we still added 8,800 net new subscribers for the quarter and ended the quarter with more than 105,000 wireless customers. Best of all, our momentum is continuing into the current quarter.”

“Our wireless transition is virtually complete. We have fewer than 500 customers left to transition. That is less than one tenth of the number we originally expected to lose during the transition. Conversions will be completed before the end of the current quarter. The employees who designed and implemented this process deserve significant commendation. The transition was well executed and we now anticipate the total transition costs will be about $3 million which is less than 40 percent of the outside amount we originally expected. Many of the transitioning customers left our service centers with brand new cell phones and new service agreements. The increase in our wireless customers and the success of our transition clearly demonstrates that our statewide wireless rollout has been well received by Alaskans.”

“We have seen no material change in Alaska’s economy since the beginning of the year,” Duncan added. “It continues to be stable and has not yet experienced the significant contraction in consumer spending that has depressed activity in the rest of the country. While the unemployment rate in Alaska is similar to that in the rest of the country, the Alaska Department of Labor’s March estimates of Alaska job growth remains positive at 0.7 percent compared to a national decrease of 3.6 percent. Year-over-year employment in Alaska is up 2,100 jobs and is expected to remain stable for 2009. While we’re mindful of the national recession and cautious about the future--especially the longer term--we don’t believe that current conditions will imperil this year’s plans. GCI is on track to meet its 2009 financial guidance which anticipates revenues of $615 million to $625 million and adjusted EBITDA of approximately $200 million.”

Highlights
·  
GCI added 8,800 wireless subscribers in the first quarter of 2009. Wireless subscribers totaled 105,100 at the end of the quarter.

·  
GCI began converting its GSM wireless customers during September, 2008. The total number of conversions currently remaining is less than 500 subscribers. The company expects to have the conversion completed before the end of the second quarter of 2009. 

·  
Consumer revenues totaled $70.7 million, an increase of 15.2 percent over the first quarter of 2008 and an increase of 7.7 percent over the fourth quarter of last year. The year-over-year increases in revenues were primarily from voice, video, data and wireless products and services. Consumer revenues also benefited from a $1.5 million out of period USF adjustment due to a regulatory change occurring in the first quarter of 2009.

·  
GCI local access lines increased by 1,100 over the fourth quarter of 2008. Consumer, network access, commercial and other local access lines totaled 141,900 at the end of the first quarter of 2009, representing an estimated 34 percent share of the total access line market in Alaska.

·  
GCI has provisioned 101,500 access lines representing 71 percent of its total access lines on its own facilities at the end of the first quarter of 2009, an increase of 1,700 lines over the fourth quarter of 2008 and an increase of 30,000 lines when compared to the end of the first quarter of the prior year. The company had provisioned 71,500 access lines on its own facilities at the end of the first quarter of 2008.

·  
GCI had 104,500 consumer and commercial cable modem access customers at the end of the first quarter of 2009, an increase of 1,200 over the 103,300 cable modem customers at the end of the fourth quarter 2008. Average monthly revenue per cable modem totaled $40.97 for the first quarter of 2009 as compared to $36.71 in the prior year, an increase of 11.6 percent and is up slightly over $40.74 for the fourth quarter of 2008. The increase in average monthly revenues arises primarily from customers upgrading to plans with increased levels of service.

·  
GCI had 150,000 basic video subscribers at the end of the first quarter of 2009, an increase of 3,300 over the first quarter of 2008 and an increase of 2,300 over the fourth quarter of 2008.

Consumer
Consumer revenues increased 15.2 percent to $70.7 million compared to $61.4 million in the first quarter of 2008 and increased 7.7 percent over the fourth quarter of 2008. The year-over-year increases in revenue were primarily from voice, video, data and wireless products. Consumer revenues also benefited from a $1.5 million out of period USF adjustment due to a regulatory change occurring in the first quarter of 2009.

Consumer voice revenues were up 17.5 percent over the prior year and 21.2 percent from the fourth quarter of 2008. The increase in voice revenues in the first quarter is primarily due to the increase in customers purchasing voice services in existing and newly served markets and a $0.7 million out of period USF adjustment. Consumer local access lines in service for the first quarter were up approximately 4,600 lines over the first quarter of 2008. Access lines in the first quarter increased by 700 over the fourth quarter of 2008.

GCI serves 69,900 consumer access lines on its own facilities, an increase of 1,200 lines over the fourth quarter of 2008. More than 85 percent of total consumer access lines are completely provisioned on GCI owned facilities.

Consumer video revenues increased 6.7 percent over the prior year and decreased 1.1 percent from the fourth quarter of 2008. The increase in year-over-year revenue is due in part to an increase in subscribers purchasing higher tier services including high definition or digital service and renting high definition/digital video recorders. The sequential decrease in consumer video revenues is due to a transfer of approximately 2,900 video subscribers from the consumer segment to the commercial segment during the first quarter of 2009. Consumer video subscribers totaled 130,000 at the end of the first quarter of 2009.

Consumer data revenues increased 16.5 percent over the prior year and 2.6 percent over the fourth quarter of 2008. The increase in consumer data revenues is due to an increase in cable modem customers and an increase in average monthly revenue per modem subscriber. The increase in average monthly revenues arises in part from customers upgrading to plans with increased levels of service. During the first quarter the consumer segment transferred 1,400 cable modems to the commercial segment. GCI added 4,800 consumer cable modem customers over the prior year and cable modem customer counts increased by 1,300 on a sequential basis over the fourth quarter of 2008, not including the modems transferred during the first quarter of 2009.

Consumer wireless revenues increased to $17.7 million, an increase of 28.1 percent over the first quarter of 2008. The increase in wireless revenues is primarily due to an increase in wireless subscribers and a $0.8 million out of period USF adjustment. Consumer has added more than 24,000 wireless lines in service from the end of the first quarter a year ago, an increase of 33.0 percent.

Network Access
Network access revenues decreased 15.3 percent to $33.2 million as compared to $39.2 million in the first quarter of 2008 and decreased 2.3 percent from the fourth quarter of 2008. The decrease in revenues is primarily attributed to the expected migration of AT&T Mobility traffic from the company’s network.

Voice revenues, as expected, decreased 34.7 percent from the prior year and 3.9 percent from the fourth quarter of 2008. The decrease in voice revenues and corresponding minutes as compared to the prior year is primarily due to the migration of AT&T Mobility traffic. Minutes for the first quarter of 2009 increased 3.3 percent from the fourth quarter of 2008.

Data revenues for the first quarter of 2009 were up 6.6 percent over the first quarter 2008 and decreased 2.6 percent from the fourth quarter of 2008.

Wireless revenues, primarily related to roaming traffic, increased $0.5 million over the prior year and increased $0.3 million sequentially.

Commercial
Commercial revenues increased 5.3 percent to $28.0 million as compared to $26.6 million in the first quarter of 2008 and decreased 8.1 percent from $30.5 million in the fourth quarter of 2008. Commercial revenues decreased sequentially primarily due to a decrease in video advertising and time and materials revenues. Commercial revenues also benefitted from a $0.4 million out of period USF adjustment from a regulatory change occurring in the first quarter of 2009.

Voice revenues increased 10.7 percent over the prior year primarily due to an increase in local access lines in service and the out of period USF adjustment. Long distance minutes decreased 2.0 percent from the prior year and increased 5.5 percent over the fourth quarter of 2008. GCI increased commercial local access lines by 3,400 over the first quarter of 2008 and 700 when compared to the fourth quarter of 2008.

Commercial video revenues increased 12.6 percent on a year-over-year and decreased 22.2 percent on a sequential basis. The year-over-year increase in revenues is due to the previously mentioned transfer of 2,900 subscribers from the Consumer segment. The decrease in revenues is due mostly to a decrease in advertising revenues.

Commercial data revenues in the first quarter of 2009 totaled $16.5 million, an increase of 1.9 percent when compared to $16.2 million in the first quarter of 2008. Data revenues decreased $2.9 million or 13.7 percent, when compared to $19.1 million in the fourth quarter of 2008.

Commercial data revenues comprise $9.7 million in monthly recurring charges for data services and $6.8 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 the first quarter of 2009 monthly recurring data revenues increased by approximately $0.4 million when compared to the first quarter and declined $0.2 million compared to the fourth quarter of 2008.

Wireless revenues totaled $1.4 million for the first quarter, an increase of 7.0 percent over the prior year and an increase of 4.5 percent over the fourth quarter of 2008. GCI had 8,000 commercial wireless subscribers at the end of the first quarter, an increase of 400 subscribers over the fourth quarter of 2008.
 
Managed Broadband                                                     
            Managed broadband revenues totaled $10.6 million in the first quarter of 2009, an increase of 41.0 percent over $7.5 million in the first quarter of 2008. Revenue for the first quarter was up 5.1 percent over the $10.1 million reported in the fourth quarter of 2008. A significant portion of the increased revenues on a year-over-year basis are a result of the acquisition of Unicom in the prior year.

Regulated Operations
Regulated operations revenues totaled $6.2 million and adjusted EBITDA totaled $1.5 million for the first quarter of 2009. Regulated operations has 11,900 local access lines at the end of the first quarter of 2009, a decrease of 200 access lines from the fourth quarter of 2008.

Other Items
During the first quarter of 2009 GCI’s capital expenditures totaled $24.4 million as compared to $40.4 million in the fourth quarter of 2008.

While the company believes that the financial results included in this news release are materially correct, the company's auditors have not yet concluded all aspects of their review of our financial statements. Accordingly, the financial results included herein should be considered preliminary and may be subject to change following conclusion of the review.

GCI will hold a conference call to discuss the quarter’s results on Thursday, May 7, 2009 beginning at 2 p.m. (Eastern). To access the briefing on May 7, dial 800-779-1163 (International callers should dial 1-630-395-0230) 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 866-508-6487, access code 7461 (International callers should dial 203-369-1908.)

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 to the lower 48 states with a diversely routed, protected fiber network. The company’s satellite network provides communications services to small towns and villages throughout rural Alaska. GCI is 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 may 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)
  
(Preliminary)
    
   
March 31,
  
December 31,
Assets
  
2009
  
2008
         
Current assets:
        
  Cash and cash equivalents
  $
        25,510
  
          29,904
         
  Receivables
  
         105,706
  
         113,136
  Less allowance for doubtful receivables
  
            2,946
  
            2,582
     Net receivables
  
         102,760
  
         110,554
         
  Inventories
  
            8,299
  
            7,085
  Deferred income taxes
  
            7,034
  
            7,843
  Prepaid expenses
  
            6,424
  
            5,960
  Investment securities
  
            1,349
  
            1,563
  Other current assets
  
            1,228
  
               647
       Total current assets
  
         152,604
  
         163,556
         
Property and equipment in service, net of depreciation
  
         796,044
  
         793,051
Construction in progress
  
          45,204
  
          54,098
       Net property and equipment
  
         841,248
  
         847,149
         
Cable certificates
  
         191,565
  
         191,565
Goodwill
  
          68,477
  
          66,868
Wireless licenses
  
          25,967
  
          25,967
Other intangible assets, net of amortization
  
          21,019
  
          22,976
Deferred loan and senior notes costs, net of amortization
  
            6,142
  
            6,496
Other assets
  
          10,772
  
          10,724
    Total other assets
  
         323,942
  
         324,596
       Total assets
  $
  1,317,794
  
      1,335,301
         
       
 (Continued)
 
 
 
 
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Continued)
           
           
(Amounts in thousands)
    
(Preliminary)
    
     
March 31,
  
December 31,
Liabilities and Stockholders' Equity
    
2009
  
2008
           
Current liabilities:
          
  Current maturities of obligations under long-term debt and capital leases
 $ 
        12,951
  
          12,857
  Accounts payable
    
          31,608
  
          40,497
  Deferred revenue
    
          22,100
  
          22,095
  Accrued payroll and payroll related obligations
    
          18,045
  
          22,632
  Accrued liabilities
    
          13,396
  
          11,043
  Accrued interest
    
            3,768
  
          10,224
  Subscriber deposits
    
            1,386
  
            1,262
     Total current liabilities
    
         103,254
  
         120,610
           
Long-term debt
    
         706,076
  
         708,406
Obligations under capital leases, excluding current maturities
    
          92,874
  
          94,029
Obligation under capital lease due to related party, excluding current
  maturity
  
            1,870
  
            1,868
Deferred income taxes
    
          85,897
 
          86,187
Long-term deferred revenue
    
          51,358
 
          49,998
Other liabilities
    
          15,078
  
          15,288
       Total liabilities
    
      1,056,407
  
      1,076,386
           
           
Commitments and contingencies
          
Stockholders’ equity:
          
  Common stock (no par):
          
    Class A. Authorized 100,000 shares; issued 49,843 and 50,062 shares
     at March 31, 2009 and December 31, 2008, respectively; outstanding
     49,568 and 49,593 shares at March 31, 2009 and December 31,
     2008, respectively
  
         150,078
  
         151,262
           
    Class B. Authorized 10,000 shares; issued 3,203 shares at March 31,
     2009 and December 31, 2008; outstanding 3,201 shares at March 31,
     2009 and December 31, 2008; convertible on a share-per-share basis
     into Class A common stock
  
            2,706
  
            2,706
           
    Less cost of 277 and 283 Class A and Class B common shares held in
      treasury at March 31, 2009 and December 31, 2008, respectively
  
           (2,377)
  
           (2,462)
           
  Paid-in capital
    
          29,491
  
          27,233
  Retained earnings
    
          81,489
  
          80,176
       Total stockholders' equity
    
         261,387
  
         258,915
           
       Total liabilities and stockholders' equity
   $ 
  1,317,794
  
      1,335,301

 
 
 


GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
  
CONSOLIDATED INCOME STATEMENT
  
   
(Unaudited)
  
   
Three Months Ended
  
   
March 31,
  
(Amounts in thousands, except per share amounts)
  
2009
(preliminary)
2008
  
           
Revenues
$
        148,689
  
        134,674
  
           
Cost of goods sold (exclusive of depreciation and amortization shown
  separately below)
          47,857
  
          51,311
  
Selling, general and administrative expenses
  
          56,586
  
          46,406
  
Depreciation and amortization expense
  
          30,734
  
          27,243
  
   Operating income
  
          13,512
  
            9,714
  
           
Other income (expense):
          
  Interest expense (including amortization of deferred loan fees)
  
         (12,647)
  
           (8,908)
  
  Interest income
  
                  8
  
                81
  
  Other expense, net
  
         (12,639)
  
           (8,827)
  
           
   Income before income tax expense
  
              873
  
              887
  
           
Income tax expense
  
              519
  
            1,427
  
           
   Net income (loss)
  
              354
  
             (540)
  
           
Net income attributable to the non-controlling interest
  
                   -
  
              976
  
           
   Net income attributable to General Communication, Inc.
$
              354
  
              436
  
           
Basic net income per share of Class A and Class B common stock:
          
  Basic net income attributable to General Communication, Inc. common
     stockholders per common share
$
0.01
  
             0.01
  
           
Diluted net income per share of Class A and Class B common stock:
          
  Diluted net income attributable to General Communication, Inc. common
     stockholders per common share
$
0.00
  
0.00
  
           
Common shares used to calculate basic EPS
  
          52,657
  
          52,545
  
           
Common shares used to calculate diluted EPS
  
          53,033
  
          52,545
  

 
 
 


 
 
 

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
                      
 
First Quarter 2009
  
First Quarter 2008
   
   Network
Managed
    Regulated
    
   Network
Managed
 Regulated
 
Consumer
Access
Commercial
Broadband
Operations
Totals
  
Consumer
Access
Commercial
Broadband
Operations
Totals
Revenues
                          
  Voice
 $ 13,915
    14,334
          7,984
              -
       6,169
        42,402
  
 $  11,844
    21,942
         7,214
             -
             -
      41,000
  Video
    27,370
             -
          2,050
              -
              -
        29,420
  
     25,647
             -
         1,820
             -
             -
      27,467
  Data
    11,762
    17,954
        16,515
      10,610
              -
        56,841
  
     10,096
    16,839
       16,209
      7,526
             -
      50,670
  Wireless
    17,672
        911
          1,443
              -
              -
        20,026
  
     13,796
         393
         1,348
             -
             -
      15,537
    Total
    70,719
    33,199
        27,992
      10,610
       6,169
      148,689
  
     61,383
    39,174
       26,591
      7,526
             -
    134,674
                           
Cost of goods
  sold
    23,403
      6,684
        13,355
       2,689
       1,726
        47,857
  
     24,701
    10,255
       14,071
      2,284
             -
      51,311
                           
    Contribution
    47,316
    26,515
        14,637
       7,921
       4,443
      100,832
  
     36,682
    28,919
       12,520
      5,242
             -
      83,363
                           
Less SG&A
    29,486
    10,275
          9,723
       4,191
       2,911
        56,586
  
     25,353
      9,587
         8,612
      2,855
             -
      46,407
Non-controlling interest
             -
             -
                 -
              -
  
                -
  
         429
         383
            165
             -
             -
          977
    EBITDA
    17,830
    16,240
          4,914
       3,730
       1,532
        44,246
  
     11,758
    19,715
         4,073
      2,387
             -
      37,933
                           
Add share-based
  compensation
        765
        553
            326
          158
              -
         1,802
  
         496
         422
            252
           90
             -
       1,260
Add non-cash
  contribution adjustment
        183
        126
              61
            30
              -
            400
  
             -
             -
                -
             -
             -
              -
    Adjusted EBITDA
 $ 18,778
    16,919
          5,301
       3,918
       1,532
        46,448
  
 $  12,254
    20,137
         4,325
      2,477
             -
      39,193

 
 
 



GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
                      
 
First Quarter 2009
  
Fourth Quarter 2008
   
    Network
Managed
   Regulated
    
    Network
Managed
  Regulated
 
Consumer
Access
Commercial
Broadband
Operations
Totals
  
Consumer
Access
Commercial
Broadband
Operations
Totals
Revenues
                          
  Voice
 $ 13,915
    14,334
          7,984
              -
       6,169
        42,402
  
 $  11,482
    14,918
         7,307
             -
      6,465
      40,172
  Video
    27,370
             -
          2,050
              -
              -
        29,420
  
     27,682
             -
         2,636
             -
             -
      30,318
  Data
    11,762
    17,954
        16,515
      10,610
              -
        56,841
  
     11,465
    18,439
       19,135
    10,094
             -
      59,133
  Wireless
    17,672
        911
          1,443
              -
              -
        20,026
  
     15,022
         621
         1,381
             -
             -
      17,024
    Total
    70,719
    33,199
        27,992
      10,610
       6,169
      148,689
  
     65,651
    33,978
       30,459
    10,094
      6,465
    146,647
                           
Cost of goods
  sold
    23,403
      6,684
        13,355
       2,689
       1,726
        47,857
  
     20,889
      8,041
       16,214
      2,310
      1,444
      48,898
                           
    Contribution
    47,316
    26,515
        14,637
       7,921
       4,443
      100,832
  
     44,762
    25,937
       14,245
      7,784
      5,021
      97,749
                           
Less SG&A
    29,486
    10,275
          9,723
       4,191
       2,911
        56,586
  
     30,165
    12,493
         9,910
      3,548
      3,114
      59,230
Add other
  income (expense)
             -
             -
                 -
              -
              -
                -
  
        (217)
             -
                -
             -
             -
         (217)
    EBITDA
    17,830
    16,240
          4,914
       3,730
       1,532
        44,246
  
     14,380
    13,444
         4,335
      4,236
      1,907
      38,302
                           
Add share-based
  compensation
        765
        553
            326
          158
              -
         1,802
  
         683
         580
            334
         134
             -
       1,731
Add non-cash
  contribution adjustment
        183
        126
              61
            30
              -
            400
  
          (66)
          (59)
             (25)
          (10)
             -
         (160)
    Adjusted EBITDA
 $ 18,778
    16,919
          5,301
       3,918
       1,532
        46,448
  
 $  14,997
    13,965
         4,644
      4,360
      1,907
      39,873

 
 
 



GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS
(Unaudited)
                     
           
March 31, 2009
  
March 31, 2009
           
as compared to
  
as compared to
   
March 31,
March 31,
December 31,
March 31,
December 31,
March 31,
December 31,
   
2009
2008
2008
  
2008
2008
  
2008
2008
Consumer
                  
Voice
                  
 
Long-distance subscribers
88,700
90,400
88,600
  
                        (1,700)
                   100
  
-1.9%
0.1%
 
Total local access lines in service
81,400
76,800
80,700
  
                          4,600
                   700
  
6.0%
0.9%
 
Local access lines in service on GCI facilities
69,900
55,500
68,700
  
                       14,400
                1,200
  
25.9%
1.7%
                     
Video
                  
 
Basic subscribers
130,000
130,700
132,500
  
                           (700)
              (2,500)
  
-0.5%
-1.9%
 
Digital programming tier subscribers
76,100
68,100
71,900
  
                          8,000
                4,200
  
11.7%
5.8%
 
HD/DVR converter boxes
72,100
55,400
67,800
  
                       16,700
                4,300
  
30.1%
6.3%
 
Homes passed
229,700
225,700
229,300
  
                          4,000
                   400
  
1.8%
0.2%
                     
Data
                  
 
Cable modem subscribers
94,300
90,900
94,400
  
                          3,400
                  (100)
  
3.7%
-0.1%
                     
Wireless
                  
 
Wireless lines in service
97,100
73,000
88,700
  
                       24,100
                8,400
  
33.0%
9.5%
                     
Network Access Services
                  
Data:
                  
 
Total ISP access lines in service
                1,700
                2,600
                1,800
  
                           (900)
                  (100)
  
-34.6%
-5.6%
                     
Commercial
                  
Voice:
                  
 
Long-distance subscribers
9,700
10,400
9,700
  
                           (700)
                         -
  
-6.7%
0.0%
 
Total local access lines in service
              46,900
              43,500
              46,200
  
                          3,400
                   700
  
7.8%
1.5%
 
Local access lines in service on GCI facilities
18,000
13,400
17,200
  
                          4,600
                   800
  
34.3%
4.7%
                     
Video
                  
 
Hotels and mini-headend
  subscribers
18,300
14,000
13,200
  
                          4,300
                5,100
  
30.7%
38.6%
 
Basic subscribers
1,700
2,000
2,000
  
                           (300)
                  (300)
  
-15.0%
-15.0%
 
   Total basic subscribers
20,000
16,000
15,200
  
                          4,000
                4,800
  
25.0%
31.6%
                     
Data
                  
 
Cable modem subscribers
              10,200
                8,800
                8,900
  
                          1,400
                1,300
  
15.9%
14.6%
                     
Wireless
                  
 
Wireless lines in service
8,000
7,200
7,600
  
                             800
                   400
  
11.1%
5.3%
                     
Regulated Operations
                  
Voice:
                  
 
Total local access lines in service
              11,900
NA
              12,100
  
NA
                  (200)
  
NA
-1.7%
                     
           
March 31, 2009
  
March 31, 2009
   
Three Months Ended
    
as Compared to
  
as Compared to
   
March 31,
March 31,
December 31,
March 31,
December 31,
March 31,
December 31,
   
2009
2008
2008
  
2008
2008
  
2008
2008
Consumer
                  
Voice
                  
 
Long-distance minutes carried
  (in millions)
29.6
33.7
31.8
  
                             (4.1)
                   (2.2)
  
-12.2%
-6.9%
                     
Video
                  
 
Average monthly gross revenue per
  subscriber
 $             69.50
 $             66.09
 $             69.67
  
 $                         3.41
 $             (0.17)
  
5.2%
-0.2%
                     
Wireless
                  
 
Average monthly gross revenue per
  subscriber
 $             58.63
 $             59.25
 $             53.55
  
 $                       (0.62)
 $               5.08
  
-1.0%
9.5%
                     
Network Access Services
                  
Voice
                  
 
Long-distance minutes carried
  (in millions)
200.4
314.6
194.1
  
                        (114.2)
                     6.3
  
-36.3%
3.2%
                     
Commercial
                  
Voice:
                  
 
Long-distance minutes carried
  (in millions)
32.2
32.8
30.5
  
                             (0.6)
                     1.7
  
-1.8%
5.6%
                     
Total
                  
 
Long-distance minutes carried
  (in millions)
                262.2
                381.1
                256.4
  
                        (118.9)
                     5.8
  
-31.2%
2.3%


 
 
 
General Communication, Inc.
Non-GAAP Financial Reconciliation Schedule
(Unaudited, Amounts in Millions)


   
Three Months Ended
   
March 31,
2009
  
March 31,
2008
  
December 31, 2008
Net income (loss) attributable to General Communication, Inc.
$
0.4
  
0.4
  
(4.4)
Net income attributable to the non-controlling interest
  
---
  
(1.0)
  
---
Net income (loss)
  
0.4
  
(0.6)
  
(4.4)
Income tax expense
 (benefit)
  
0.5
  
1.4
  
(3.7)
Income (loss) before income tax expense (benefit)
  
0.9
  
0.8
  
(8.1)
             
Other (income) expense:
            
Interest expense (including amortization of deferred loan fees)
  
12.6 
  
8.9
  
15.6 
   Interest income
  
---
  
---
  
0.3
Other
  
---
  
---
  
0.2
Other expense, net
  
12.6 
  
8.9
  
16.1 
             
Operating income
  
13.5
  
9.7
  
8.0
Depreciation and amortization expense
  
30.7 
  
27.2 
  
30.5 
Net income attributable to the non-controlling interest
  
 
 
---
  
 
 
1.0
  
 
 
---
Other
  
---
  
---
  
(0.2)
             
EBITDA (Note 2)
  
44.2 
  
37.9 
  
38.3 
Share-based compensation expense
  
1.8
  
1.3
  
1.7
Non-cash contribution adjustment
  
0.4
  
---
  
(0.1)
Adjusted EBITDA (Note 1)
$
46.4 
  
39.2 
  
39.9 

 
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 (including Amortization of Deferred Loan Fees), Interest Income, Income Tax Expense (Benefit), 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.