Exhibit 99.1

 
 
 
 
August 5, 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 SECOND QUARTER 2009 FINANCIAL RESULTS
 
·  
Consolidated revenue of $148.8 million
·  
Adjusted EBITDA of $51.2 million
·  
Net income of $2.6 million or $0.05 per diluted share
 
ANCHORAGE, AK -- GCI (NASDAQ:GNCMA) today reported second quarter 2009 revenues of $148.8 million, an increase of 4.5 percent over the second quarter of 2008. Second quarter 2009 earnings before interest, taxes, depreciation, amortization and adjusted for share-based compensation and non-cash contribution (adjusted EBITDA) totaled $51.2 million. Adjusted EBITDA increased $6.9 million or 15.7 percent from the second quarter of 2008.
 
GCI’s second quarter 2009 net income is $2.6 million or earnings per diluted share of $0.05 and compares to net income of $1.8 million, or earnings per diluted share of $0.03 for the same period of 2008.
 
Second quarter 2009 revenues increased $0.1 million over total revenues of $148.7 million in the first quarter of 2009. Adjusted EBTIDA increased $4.8 million, or 10.3 percent over adjusted EBITDA of $46.4 million also in the first quarter of 2009.
 
“GCI’s second quarter results mark yet another record high for revenues and EBITDA,” said GCI president Ron Duncan. “Led by an increase of 6,500 wireless subscribers our consumer group continued its strong growth. At the end of the second quarter the annual run rate of consumer revenue was up more than $35 million, or 14 percent, over the prior year.”
 
“During the quarter we completed our wireless conversion, on time, under budget and with the loss of only a few subscribers. With more than 112,000 wireless subscribers at the end of the quarter and the strength of new sales continuing, we’re well on our way to being the second largest wireless provider in Alaska.”
 
“During the quarter the Alaska economy experienced its first real impacts from the global recession. Jobs in Alaska, measured on a year-over-year basis, were down for the first time in May and June and we’re seeing slowing growth from our commercial customers. Price pressures in the market are also increasing. While we’re on plan at the halfway point in the year, our goal of $200 million in EBITDAS seems more challenging now than it did in January.”
 
“I continue to be very pleased with our overall results and the strong performance of our team in the fast paced and challenging environment. We continue to execute well on our established goals and are out performing our competition in all areas.”
 
Highlights
·  
GCI added 7,500 consumer and commercial wireless subscribers in the second quarter of 2009. Wireless subscribers totaled 112,600 at the end of the quarter.
 
·  
GCI completed the conversion of its GSM wireless customers early in the second quarter of 2009.
 
·  
Consumer revenues totaled $73.4 million, an increase of 18.2 percent over the second quarter of 2008 and an increase of 3.8 percent over the first quarter of 2009. The year-over-year increases in revenues were in all product lines. Consumer revenues for the second quarter of 2009 include $2.4 million in Competitive Eligible Telecommunications Carrier (CETC) revenues attributable to prior quarters.
 
·  
Consumer, network access, commercial and regulated operations access lines totaled 141,800 at the end of the second quarter of 2009, representing an estimated 34 percent share of the total access line market in Alaska.
 
·  
GCI has provisioned 101,600 access lines representing 72 percent of its total access lines on its own facilities at the end of the second quarter of 2009, an increase of 400 lines over the first quarter of 2009 and an increase of 11,500 lines when compared to the end of the second quarter of the prior year. The company had provisioned 90,100 access lines on its own facilities at the end of the second quarter of 2008.
 
·  
GCI had 105,300 consumer and commercial cable modem access customers at the end of the second quarter of 2009, an increase of 800 over the 104,500 cable modem customers at the end of the first quarter 2009. Average monthly revenue per cable modem totaled $42.19 for the second quarter of 2009 as compared to $37.77 in the prior year, an increase of 11.7 percent and is up 3.0 percent over $40.97 for the first quarter of 2009. The increase in average monthly revenues arises primarily from customers upgrading to plans with increased levels of service.
 
·  
GCI had 151,700 basic video subscribers at the end of the second quarter of 2009, an increase of 3,700 over the second quarter of 2008 and an increase of 1,700 over the first quarter of 2009.
 
Consumer
Consumer revenues increased 18.2 percent to $73.4 million compared to $62.1 million in the second quarter of 2008 and increased 3.8 percent over the first quarter of 2009. The year-over-year increases in revenue were across all product lines. Consumer revenues for the second quarter of 2009 include $2.4 million in CETC revenues attributable to prior quarters.
 
Consumer voice revenues were up 7.2 percent over the prior year and down 6.7 percent from the first quarter of 2009. The year-over-year increase in voice revenues in the second quarter is primarily due to the increase in customers purchasing voice services in existing and newly served markets. The sequential decline is due to an accrual of CETC revenues in the first quarter that were attributable to prior quarters. Consumer local access lines in service for the second quarter were up 3,000 lines over the second quarter of 2008. Access lines in the second quarter decreased by 200 compared to the first quarter of 2009.
 
GCI serves 70,300 consumer access lines on its own facilities, an increase of 400 lines over the first quarter of 2009. More than 86 percent of consumer access lines are completely provisioned on GCI owned facilities.
 
Consumer video revenues increased 5.7 percent over the prior year and decreased 0.9 percent from the first quarter of 2009. 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. Consumer video subscribers totaled 129,700 at the end of the second quarter of 2009.
 
Consumer data revenues increased 17.1 percent over the prior year and 3.4 percent over the first quarter of 2009. 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. GCI added 3,900 consumer cable modem customers over the prior year and cable modem customer counts increased by 600 on a sequential basis over the first quarter of 2009.
 
Consumer wireless revenues increased to $21.1 million, an increase of 51.4 percent over the second quarter of 2008. The increase in wireless revenues is primarily due to an increase in wireless subscribers. Wireless revenues for the second quarter of 2009 include $2.4 million in CETC revenues attributable to prior quarters. Consumer has added more than 27,100 wireless lines in service from the end of the second quarter a year ago, an increase of 34.6 percent. Consumer added 6,500 wireless customers as compared to the end of the first quarter of 2009.
 
Network Access
Network access revenues decreased 25.7 percent to $31.1 million as compared to $41.9 million in the second quarter of 2008 and decreased 6.3 percent from the first quarter of 2009. The decrease in revenues from the prior year is primarily attributed to the expected migration of AT&T Mobility traffic from the company’s network.
 
Voice revenues, as expected, decreased 42.1 percent from the prior year and 6.2 percent from the first quarter of 2009. 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 second quarter of 2009 increased 7.6 percent from the first quarter of 2009.
 
Data revenues for the second quarter of 2009 were down 10.7 percent compared to the second quarter 2008 and decreased 10.5 percent from the first quarter of 2009. The decrease in data revenues is primarily attributable to a customer’s conversion from leased to purchased capacity on GCI’s fiber systems. The fiber purchase occurred in the prior year.
 
Wireless revenues, primarily related to roaming traffic, increased $0.9 million over the prior year and increased $0.7 million sequentially.
 
Commercial
Commercial revenues decreased $0.5 million to $26.9 million as compared to $27.4 million in the second quarter of 2008 and decreased $1.1 million from $28.0 million in the first quarter of 2009. Commercial revenues decreased primarily in the data category. On a year-over-year basis, increased commercial data services revenues more than offset a $1.1 million decrease in time and materials revenues. On a sequential basis almost all of the decrease is attributable to decreased time and materials revenues.
 
Voice revenues increased 5.8 percent over the prior year. Long distance minutes decreased 3.4 percent from the prior year and 1.3 percent from the first quarter of 2009. GCI increased commercial local access lines by 1,900 over the second quarter of 2008 and 400 when compared to the first quarter of 2009.
 
Commercial video revenues were relatively steady on a year-over-year basis and on a sequential basis.
 
Commercial data service revenues totaled $15.4 million in the second quarter of 2009, down $1.1 million from the second quarter of 2008 and down $1.0 million from the first quarter of 2009. The entire decrease is attributable to reduced time and materials revenues. Time and materials revenues are down primarily due to decreased activity in the state’s oil sector.
 
Wireless revenues totaled $1.6 million for the second quarter, an increase of 10.4 percent over the prior year and an increase of 9.5 percent over the first quarter of 2009. GCI had 8,900 commercial wireless subscribers at the end of the second quarter, an increase of 1,000 subscribers over the first quarter of 2009.
 
Managed Broadband                                      
     Managed broadband revenues totaled $11.0 million in the second quarter of 2009, an increase of 20.4 percent over $9.1 million in the second quarter of 2008. Revenue for the second quarter was up 3.7 percent over the $10.6 million reported in the first quarter of 2009. 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 $6.4 million and adjusted EBITDA totaled $2.3 million for the second quarter of 2009. Regulated operations has 11,600 local access lines at the end of the second quarter of 2009, a decrease of 300 access lines from the first quarter of 2009. As GCI rolls out more statewide wireless coverage further access line decreases are expected due to wireless substitution.
 
Other Items
During the second quarter of 2009 GCI’s capital expenditures totaled $29.7 million as compared to $24.4 million in the first quarter of 2009.
 
GCI will hold a conference call to discuss the quarter’s results on Thursday, August 6, 2009 beginning at 2 p.m. (Eastern). To access the briefing on August 6, 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 800-333-1859, access code 7461 (International callers should dial 402-220-0205.)
 
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
         
         
(Amounts in thousands)
  
(Unaudited)
    
   
June 30,
  
December 31,
Assets
  
2009
  
2008
         
Current assets:
        
  Cash and cash equivalents
  $
        27,431
  
          29,904
 
        
  Receivables
  
         120,128
  
         113,136
  Less allowance for doubtful receivables
  
            4,261
  
            2,582
     Net receivables
  
         115,867
  
         110,554
 
  
 
  
 
  Inventories
  
            8,688
  
            7,085
  Deferred income taxes
  
            7,034
  
            7,843
  Prepaid expenses
  
            6,228
  
            5,960
  Investment securities
  
               883
  
            1,563
  Other current assets
  
            4,756
  
               647
       Total current assets
  
         170,887
  
         163,556
 
        
Property and equipment in service, net of depreciation
  
         806,020
  
         793,051
Construction in progress
  
          36,746
  
          54,098
       Net property and equipment
  
         842,766
  
         847,149
 
  
 
  
 
Cable certificates
  
         191,565
  
         191,565
Goodwill
  
          68,586
  
          66,868
Wireless licenses
  
          25,967
  
          25,967
Other intangible assets, net of amortization
  
          20,568
  
          22,976
Deferred loan and senior notes costs, net of amortization
  
            5,903
  
            6,496
Other assets
  
          21,633
  
          10,724
    Total other assets
  
         334,222
  
         324,596
       Total assets
  $
    1,347,875
  
      1,335,301
         
 
 
 
(Continued)
 
 
       
 
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
        
CONSOLIDATED BALANCE SHEETS
        
(Continued)
        
         
         
(Amounts in thousands)
  
(Unaudited)
    
   
June 30,
  
December 31,
Liabilities and Stockholders' Equity
  
2009
  
2008
         
Current liabilities:
        
  Current maturities of obligations under long-term debt and capital leases
 $
        13,088
  
          12,857
  Accounts payable
  
          32,371
  
          40,497
  Deferred revenue
  
          21,866
  
          22,095
  Accrued payroll and payroll related obligations
  
          19,911
  
          22,632
  Accrued liabilities
  
          10,872
  
          11,043
  Accrued interest
  
            9,616
  
          10,224
  Subscriber deposits
  
            1,368
  
            1,262
     Total current liabilities
  
         109,092
  
         120,610
 
        
Long-term debt
  
         724,200
  
         708,406
Obligations under capital leases, excluding current maturities
  
          91,698
  
          94,029
Obligation under capital lease due to related party, excluding current
  maturity
  
            1,872
  
            1,868
Deferred income taxes
  
          88,642
 
          86,187
Long-term deferred revenue
  
          50,785
 
          49,998
Other liabilities
  
          15,856
  
          15,288
       Total liabilities
  
      1,082,145
  
      1,076,386
 
        
         
Commitments and contingencies
        
Stockholders’ equity:
        
  Common stock (no par):
        
    Class A. Authorized 100,000 shares; issued 49,976 and 50,062 shares
     at June 30, 2009 and December 31, 2008, respectively; outstanding
     49,702 and 49,593 shares at June 30, 2009 and December 31,
     2008, respectively
  
         
 
 
150,883
  
       
 
 
  151,262
         
    Class B. Authorized 10,000 shares; issued 3,192 and 3,203 shares
     at June 30, 2009 and December 31, 2008, respectively;
     outstanding 3,192 and 3,201 shares at June 30, 2009 and
     December 31, 2008, respectively; convertible on a share-per-share
     basis into Class A common stock
  
         
 
 
 
   2,689
  
            
 
 
 
2,706
         
    Less cost of 275 and 283 Class A and Class B common shares held in
      treasury at June 30, 2009 and December 31, 2008, respectively
  
           
(2,369)
  
 
           (2,462)
 
        
  Paid-in capital
  
          30,474
  
          27,233
  Retained earnings
  
          84,053
  
          80,176
       Total stockholders' equity
  
         265,730
  
         258,915
         
       Total liabilities and stockholders' equity
 $
  1,347,875
  
      1,335,301


 
 
 

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)
  
2009
  
2008
  
2009
  
2008
                 
Revenues
$
        148,796
  
        142,461
  
          297,485
  
             277,135
 
                
Cost of goods sold (exclusive of depreciation and amortization shown
  separately below)
          47,348
  
          52,448
  
           95,205
  
             103,759
Selling, general and administrative expenses
  
          51,719
  
          48,260
  
          108,305
  
               94,666
Depreciation and amortization expense
  
          31,170
  
          27,708
  
           61,904
  
               54,951
   Operating income
  
          18,559
  
          14,045
  
           32,071
  
               23,759
 
                
Other income (expense):
                
  Interest expense (including amortization of deferred loan fees)
         (13,273)
  
         (11,778)
  
          (25,920)
  
              (20,686)
  Interest income
  
                11
  
              402
  
                  19
  
                   483
     Other expense, net
  
         (13,262)
  
         (11,376)
  
          (25,901)
  
              (20,203)
                 
   Income before income tax expense
  
            5,297
  
            2,669
  
             6,170
  
                3,556
 
                
Income tax expense
  
            2,733
  
            1,783
  
             3,252
  
                3,210
 
                
   Net income
  
            2,564
  
              886
  
             2,918
  
                   346
 
                
Net income attributable to the non-controlling interest
  
                   -
  
              946
  
                    -
  
                1,922
 
                
   Net income attributable to General Communication, Inc.
$
            2,564
  
            1,832
  
             2,918
  
                2,268
                 
  Basic net income per common share
$
0.05
  
             0.04
  
0.06
  
0.04
  Diluted net income per common share
$
0.05
  
0.03
  
0.05
  
0.04
                 
Common shares used to calculate basic EPS
  
          52,499
  
          52,320
  
           52,487
  
               52,289
                 
Common shares used to calculate diluted EPS
  
          52,906
  
          52,745
  
           53,101
  
               52,950
 

 
 
 

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
                      
 
Second Quarter 2009
 
Second Quarter 2008
   
    Network
Managed
   Regulated
    
     Network
Managed
   Regulated
 
Consumer
Access
Commercial
Broadband
Operations
Totals
  
Consumer
Access
Commercial
Broadband
Operations
Totals
Revenues
                          
  Voice
 $   12,988
    13,444
         7,701
              -
       6,368
     40,501
  
     12,117
    23,213
         7,280
             -
      1,879
      44,489
  Video
      27,132
             -
         2,221
              -
              -
     29,353
  
     25,668
             -
         2,149
             -
             -
      27,817
  Data
      12,166
    16,073
        15,409
      10,998
              -
     54,646
  
     10,386
    17,988
       16,584
      9,134
             -
      54,092
  Wireless
      21,113
      1,603
         1,580
              -
              -
     24,296
  
     13,942
         690
         1,431
             -
             -
      16,063
    Total
      73,399
    31,120
        26,911
      10,998
       6,368
    148,796
  
     62,113
    41,891
       27,444
      9,134
      1,879
    142,461
                           
Cost of goods
  sold (exclusive
  of depreciation
  and amortization)
 
 
 
     24,011
   
 
 
   6,556
 
 
 
       12,977
      
 
 
 2,357
 
 
 
       1,447
    
 
 
 47,348
  
 
 
 
     23,689
 
 
 
    11,529
 
 
 
       13,912
 
 
 
      3,020
   
 
 
      298
 
 
 
      52,448
                           
    Contribution
      49,388
    24,564
        13,934
       8,641
       4,921
    101,448
  
     38,424
    30,362
       13,532
      6,114
      1,581
      90,013
                           
Less SG&A
      27,740
      9,370
         8,600
       3,411
       2,598
     51,719
  
     26,055
      9,578
         8,312
      3,093
      1,222
      48,260
Non-controlling interest
               -
             -
                -
              -
              -
              -
  
          416
         371
            159
             -
             -
          946
    EBITDA
      21,648
    15,194
         5,334
       5,230
       2,323
     49,729
  
     12,785
    21,155
         5,379
      3,021
         359
      42,699
                           
Add share-based
  compensation
       
   607
 
       452
        
    246
  
        122
         
     -
 
       1,427
  
 
          638
 
         521
        
    317
   
      117
     
        -
 
       1,593
Add non-cash
  contribution
    
        37
  
        25
        
      12
 
             6
    
          -
      
      80
  
    
          -
 
             -
        
        -
   
          -
   
          -
   
           -
    Adjusted EBITDA
 $   22,292
    15,671
         5,592
       5,358
       2,323
     51,236
  
     13,423
    21,676
         5,696
      3,138
         359
      44,292
 
 
 
 
 
 
 
                           
                           
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
                      
 
Second Quarter 2009
 
First Quarter 2009
   
     Network
Managed
   Regulated
    
     Network
Managed
   Regulated
 
Consumer
Access
Commercial
Broadband
Operations
Totals
  
Consumer
Access
Commercial
Broadband
Operations
Totals
Revenues
                          
  Voice
 $   12,988
    13,444
         7,701
              -
       6,368
     40,501
  
     13,915
    14,334
         7,984
             -
      6,169
      42,402
  Video
      27,132
             -
         2,221
              -
              -
     29,353
  
     27,370
             -
         2,050
             -
             -
      29,420
  Data
      12,166
    16,073
        15,409
      10,998
              -
     54,646
  
     11,762
    17,954
       16,515
    10,610
             -
      56,841
  Wireless
      21,113
      1,603
         1,580
              -
              -
     24,296
  
     17,672
         911
         1,443
             -
             -
      20,026
    Total
      73,399
    31,120
        26,911
      10,998
       6,368
    148,796
  
     70,719
    33,199
       27,992
    10,610
      6,169
    148,689
                           
Cost of goods
  sold (exclusive
  of depreciation
  and amortization)
   
 
 
   24,011
  
 
 
    6,556
 
 
 
       12,977
    
 
 
   2,357
    
 
 
   1,447
 
 
 
    47,348
  
 
 
 
    23,403
   
 
 
   6,684
 
 
 
       13,355
 
 
 
      2,689
  
 
 
    1,726
 
 
 
      47,857
                           
    Contribution
      49,388
    24,564
        13,934
       8,641
       4,921
    101,448
  
     47,316
    26,515
       14,637
      7,921
      4,443
    100,832
                           
Less SG&A
      27,740
      9,370
         8,600
       3,411
       2,598
     51,719
  
     29,486
    10,275
         9,723
      4,191
      2,911
      56,586
    EBITDA
      21,648
    15,194
         5,334
       5,230
       2,323
     49,729
  
     17,830
    16,240
         4,914
      3,730
      1,532
      44,246
                           
Add share-based
  compensation
        
  607
 
        452
     
       246
    
      122
         
     -
 
       1,427
  
  
        765
   
      553
  
          326
  
       158
    
         -
 
       1,802
Add non-cash
  contribution
       
     37
    
      25
     
         12
       
       6
        
      -
 
            80
  
  
        183
  
       126
     
         61
   
        30
  
           -
 
          400
    Adjusted EBITDA
 $   22,292
    15,671
         5,592
       5,358
       2,323
     51,236
  
     18,778
    16,919
         5,301
      3,918
      1,532
      46,448
 
 
 
 
 
 
                           
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
                      
 
Six Months Ended June 30, 2009
 
Six Months Ended June 30, 2008
   
     Network
Managed
   Regulated
    
     Network
  Managed     Regulated
  
 
Consumer
Access
Commercial
Broadband
Operations
Totals
  
Consumer
Access
Commercial
  Broadband   Operations
  Totals
Revenues
                          
  Voice
 $   26,903
    27,778
        15,685
              -
     12,537
     82,903
  
     23,978
    45,155
       14,494
             -
      1,879
      85,506
  Video
      54,502
             -
         4,271
              -
              -
     58,773
  
     51,315
             -
         3,969
             -
             -
      55,284
  Data
      23,928
    34,027
        31,924
      21,608
              -
    111,487
  
     20,482
    34,827
       32,793
    16,660
             -
    104,762
  Wireless
      38,785
      2,514
         3,023
              -
              -
     44,322
  
     27,721
      1,083
         2,779
             -
             -
      31,583
    Total
    144,118
    64,319
        54,903
      21,608
     12,537
    297,485
  
    123,496
    81,065
       54,035
    16,660
      1,879
    277,135
                           
Cost of goods
  sold (exclusive
  of depreciation
  and amortization)
 
 
 
      47,414
  
 
 
  13,240
 
 
 
        26,332
 
 
 
       5,046
      
 
 
 3,173
 
 
 
    95,205
  
  
 
 
   48,391
 
 
 
    21,783
 
 
 
       27,983
 
 
 
      5,304
 
 
 
         298
  
 
 
  103,759
                           
    Contribution
      96,704
    51,079
        28,571
      16,562
       9,364
    202,280
  
     75,105
    59,282
       26,052
    11,356
      1,581
    173,376
                           
Less SG&A
      57,225
    19,645
        18,323
       7,603
       5,509
    108,305
  
     51,406
    19,166
       16,924
      5,948
      1,222
      94,666
Non-controlling interest
               -
             -
                -
              -
              -
              -
  
          844
         754
            324
             -
             -
       1,922
    EBITDA
      39,479
    31,434
        10,248
       8,959
       3,855
     93,975
  
     24,543
    40,870
         9,452
      5,408
         359
      80,632
                           
Add share-based
  compensation
       
 1,371
 
     1,005
 
            572
 
         281
 
              -
     
  3,229
  
     
  1,134
 
         943
  
          569
   
      207
   
          -
 
       2,853
Add non-cash
  contribution
      
    220
 
       151
 
              73
   
         36
 
              -
     
     480
  
    
          -
 
             -
   
             -
  
           -
   
          -
 
              -
    Adjusted EBITDA
 $   41,070
    32,590
        10,893
       9,276
       3,855
     97,684
  
     25,677
    41,813
       10,021
      5,615
         359
      83,485



 
 
 

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS
(Unaudited)
                     
           
June 30, 2009
  
June 30, 2009
           
as compared to
  
as compared to
   
June 30,
June 30,
March 31,
  
June 30,
March 31,
  
June 30,
March 31,
   
2009
2008
2009
  
2008
2009
  
2008
2009
Consumer
                  
Voice
                  
 
Long-distance subscribers
88,600
89,800
88,700
  
              (1,200)
                  (100)
  
-1.3%
-0.1%
 
Total local access lines in service
81,200
78,100
81,400
  
                3,100
                  (200)
  
4.0%
-0.2%
 
Local access lines in service on GCI facilities
70,300
60,500
69,900
  
                9,800
                   400
  
16.2%
0.6%
                     
Video
                  
 
Basic subscribers
129,700
130,300
130,000
  
                  (600)
                  (300)
  
-0.5%
-0.2%
 
Digital programming tier subscribers
76,200
68,200
76,100
  
                8,000
                   100
  
11.7%
0.1%
 
HD/DVR converter boxes
74,400
56,900
72,100
  
              17,500
                2,300
  
30.8%
3.2%
 
Homes passed
230,400
226,900
229,700
  
                3,500
                   700
  
1.5%
0.3%
                     
Data
                  
 
Cable modem subscribers
94,900
91,000
94,300
  
                3,900
                   600
  
4.3%
0.6%
                     
Wireless
                  
 
Wireless lines in service
103,600
77,000
97,100
  
              26,600
                6,500
  
34.5%
6.7%
                     
Network Access Services
                  
Data:
                  
 
Total ISP access lines in service
                1,700
                2,000
                1,700
  
                  (300)
                         -
  
-15.0%
0.0%
                     
Commercial
                  
Voice:
                  
 
Long-distance subscribers
9,600
10,400
9,700
  
                  (800)
                  (100)
  
-7.7%
-1.0%
 
Total local access lines in service
              47,300
              45,400
              46,900
  
                1,900
                   400
  
4.2%
0.9%
 
Local access lines in service on GCI facilities
18,400
16,600
18,000
  
                1,800
                   400
  
10.8%
2.2%
                     
Video
                  
 
Hotels and mini-headend
  subscribers
20,300
15,700
18,300
  
                4,600
                2,000
  
29.3%
10.9%
 
Basic subscribers
1,700
2,000
1,700
  
                  (300)
                         -
  
-15.0%
0.0%
 
   Total basic subscribers
22,000
17,700
20,000
  
                4,300
                2,000
  
24.3%
10.0%
                     
Data
                  
 
Cable modem subscribers
              10,400
                9,000
              10,200
  
                1,400
                   200
  
15.6%
2.0%
                     
Wireless
                  
 
Wireless lines in service
8,900
7,100
8,000
  
                1,800
                   900
  
25.4%
11.3%
                     
Regulated Operations
                  
Voice:
                  
 
Total local access lines in service
              11,600
              12,200
              11,900
  
NA
NA
  
NA
NA
                     
           
June 30, 2009
  
June 30, 2009
   
Three Months Ended
    
as Compared to
  
as Compared to
   
June 30,
June 30,
March 31,
  
June 30,
March 31,
  
June 30,
March 31,
   
2009
2008
2009
  
2008
2009
  
2008
2009
Consumer
                  
Voice
                  
 
Long-distance minutes carried
  (in millions)
 
28.3
 
32.0
 
29.6
  
   
                (3.7)
                 
  (1.3)
  
 
-11.6%
 
-4.4%
                     
Video
                  
 
Average monthly gross revenue per
  subscriber
 
 $             69.59
 
 $             65.86
 
 $             69.50
  
 
 $               3.73
 
 $               0.09
  
 
5.7%
 
0.1%
                     
Wireless
                  
 
Average monthly gross revenue per
  subscriber
 
 $             57.88
 
 $             57.39
 
 $             58.63
  
 
 $               0.49
 
 $             (0.75)
  
 
0.9%
 
-1.3%
                     
Network Access Services
                  
Voice
                  
 
Long-distance minutes carried
  (in millions)
 
215.6
 
326.2
 
200.4
  
      
        (110.6)
        
          15.2
  
 
-33.9%
 
7.6%
                     
Commercial
                  
Voice:
                  
 
Long-distance minutes carried
  (in millions)
 
31.8
 
32.9
 
32.2
  
              
     (1.1)
        
           (0.4)
  
 
-3.3%
 
-1.2%
                     
Total
                  
 
Long-distance minutes carried
  (in millions)
        
        275.7
        
        391.1
        
        262.2
  
         
     (115.4)
       
           13.5
  
 
-29.5%
 
5.1%


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


   
Three Months Ended
   
June 30,
2009
  
June 30,
2008
  
March 31, 2009
Net income attributable to General Communication, Inc.
$
2.6
  
1.8
  
0.4
Net income attributable to the non-controlling interest
  
---
  
(0.9)
  
---
Net income
  
2.6
  
0.9
  
0.4
Income tax expense
  
2.7
  
1.8
  
0.5
Income before income tax expense
  
5.3
  
2.7
  
0.9
             
Other (income) expense:
            
Interest expense
 (including amortization
    of deferred loan fees)
  
13.2 
  
11.8 
  
12.6 
Interest income
  
---
  
(0.4)
  
---
Other expense, net
  
13.2 
  
11.4 
  
12.6 
             
Operating income
  
18.5 
  
14.1 
  
13.5 
Depreciation and amortization expense
  
31.2 
  
27.7 
  
30.7 
Net income attributable to the non-controlling interest
  
---
  
0.9
  
---
             
EBITDA (Note 2)
  
49.7 
  
42.7 
  
44.2 
Share-based compensation expense
  
1.4
  
1.6
  
1.8
Non-cash contribution adjustment
  
0.1
  
---
  
0.4
Adjusted EBITDA (Note 1)
$
51.2 
  
44.3 
  
46.4 


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


   
Six Months Ended
   
June 30,
2009
  
June 30,
2008
Net income attributable to General Communication, Inc.
    $
2.9
  
2.3
Net income attributable to the non-controlling interest
  
---
  
(1.9)
Net income
  
2.9
  
0.4
Income tax expense
  
3.3
  
3.2
Income before income tax expense
  
6.2
  
3.6
         
Other (income) expense:
        
Interest expense
 (including amortization
    of deferred loan fees)
  
25.9 
  
20.7 
Interest income
      
(0.5)
Other expense, net
  
25.9 
  
20.2 
         
Operating income
  
32.1 
  
23.8 
Depreciation and amortization expense
  
61.9 
  
54.9 
Net income attributable to the non-controlling interest
  
---
  
1.9
         
EBITDA (Note 2)
  
94.0 
  
80.6 
Share-based compensation expense
  
3.2
  
2.9
Non-cash contribution adjustment
  
0.5
  
---
Adjusted EBITDA (Note 1)
    $
97.7 
  
83.5 


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, Interest Expense (including Amortization of Deferred Loan 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.