Exhibit 99.1


November 4, 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 THIRD QUARTER 2009 FINANCIAL RESULTS

·  
Consolidated revenue of $150.8 million
·  
Adjusted EBITDA of $50.3 million
·  
Net income of $4.3 million or $0.08 per diluted share

ANCHORAGE, AK -- GCI (NASDAQ:GNCMA) today reported third quarter 2009 revenues of $150.8 million as compared to revenues of $151.7 million in the third quarter of 2008. Third quarter 2009 earnings before interest, taxes, depreciation, amortization and adjusted for share-based compensation and non-cash contribution (adjusted EBITDA) totaled $50.3 million. Adjusted EBITDA increased $2.5 million or 5.3 percent from the third quarter of 2008.

GCI’s third quarter 2009 net income totaled $4.3 million or earnings per diluted share of $0.08 and compares to net income of $0.3 million, or earnings per diluted share of $0.00 for the same period of 2008.

Third quarter 2009 revenues increased $2.0 million over total revenues of $148.8 million in the second quarter of 2009. Second quarter revenues included an accrual of approximately $2.4 million of Competitive Eligible Telecommunications Carrier (CETC) revenues that were attributable to prior quarters. Adjusted EBITDA decreased $0.9 million, or 1.9 percent from adjusted EBITDA of $51.2 million also in the second quarter of 2009. Second quarter EBITDA was favorably affected by the previously mentioned accrual of CETC revenues attributable to prior quarters.

 “GCI turned in another strong quarter with good financial results driven by solid customer metrics,” said GCI president Ron Duncan. ”Led by increases of 7,400 wireless and 3,200 new cable modem subscribers, consumer customer counts were up in all categories year-over-year and in three out of four categories on a sequential basis. These customer metrics are the leading indicators of our financial performance and they continue to grow across the board as our customers voraciously purchase GCI products.”

“After the quarter’s end we sold $425 million in 8 5/8 percent senior unsecured notes to refinance our bank debt. Following the closing of the transaction this week we have approximately $40 million in cash and only $2.8 million in letters of credit commitments against our existing and pending new $75 million line of credit. This transaction essentially bullet proofs our balance sheet, giving us protection from refinancing risk and further unexpected changes in the financial markets. It increases the company’s financial flexibility and fully funds our business plans for the foreseeable future. We can now focus on executing our business plan and growing value for our shareholders.”

“The Alaska economy largely continues to resist the recessionary impacts from the global recession. Jobs in Alaska, measured on a year-over-year basis, were down for the last five months, yet the job loss at the end of September totaled just 2,000, on a statewide employment base in excess of 330,000. Certain segments of the Alaska economy--like tourism--are feeling a material adverse impact but on the whole declines are being offset by growth in other areas. Alaska labor data may be lagging real time trends to some extent, however the data suggest the slight downward trend is not accelerating. While we continue to see slowing revenue growth in certain segments of our business we are encouraged by our positive customer trends. While we now don’t expect to meet our original goal of $200 million in EBITDA for 2009, we won’t miss it by much and for the second quarter in a row we are operating at an annualized run rate in excess of $200 million.”

 
 
 
 

Highlights
·  
GCI added 7,400 consumer and commercial wireless subscribers in the third quarter of 2009. Wireless subscribers totaled 120,000 at the end of the quarter.

·  
Consumer revenues totaled $75.0 million, an increase of 12.8 percent over the third quarter of 2008 and an increase of 2.2 percent over the second quarter of 2009. The year-over-year increases in revenues were in all product lines.

 
·  
Consumer, network access, commercial and regulated operations access lines totaled 143,000 at the end of the third quarter of 2009, representing an estimated 34 percent share of the total access line market in Alaska. Access lines increased by 1,100 lines over the second quarter of 2009.

·  
GCI has provisioned 104,400 access lines representing 73 percent of its total access lines on its own facilities at the end of the third quarter of 2009, an increase of 2,800 lines over the second quarter of 2009 and an increase of 8,100 lines when compared to the end of the third quarter of the prior year. The company had provisioned 96,300 access lines on its own facilities at the end of the third quarter of 2008.

·  
GCI had 108,500 consumer and commercial cable modem access customers at the end of the third quarter of 2009, an increase of 3,200 over the 105,300 cable modem customers at the end of the second quarter 2009. Average monthly revenue per cable modem totaled $43.42 for the third quarter of 2009 as compared to $39.23 in the prior year, an increase of 10.7 percent and is up 2.9 percent over $42.19 for the second quarter of 2009. The increase in average monthly revenues arises primarily from customers upgrading to plans with increased levels of service.

·  
GCI had 149,300 basic video subscribers at the end of the third quarter of 2009, an increase of 1,100 over the third quarter of 2008 and a decrease of 2,400 from the second quarter of 2009.

·  
GCI closed a $425 million, 8 5/8 percent, senior unsecured notes offering. The proceeds from the over subscribed offering were used to retire all outstanding amounts under an existing senior secured credit facility and the remainder will be used for general corporate purposes.

Consumer
Consumer revenues increased 12.8 percent to $75.0 million as compared to $66.5 million in the third quarter of 2008 and increased 2.2 percent over the second quarter of 2009. The year-over-year increases in revenue were across all product lines

Consumer voice revenues were up 7.8 percent over the prior year and down 3.9 percent from the second quarter of 2009. Consumer local access lines in service for the third quarter were up 3,500 lines over the third quarter of 2008. Access lines in the third quarter increased by 1,500 compared to the second quarter of 2009.

GCI serves 72,700 consumer access lines on its own facilities, an increase of 2,400 lines over the second quarter of 2009. More than 88 percent of consumer access lines are completely provisioned on GCI owned facilities.

Consumer video revenues increased 5.2 percent over the prior year and increased 1.8 percent from the second quarter of 2009. The increase in 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 129,600 at the end of the third quarter of 2009.

Consumer data revenues increased 18.4 percent over the prior year and 4.6 percent over the second 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
 
 
 
 
 
5,800 consumer cable modem customers over the prior year and cable modem customer counts increased by 3,000 on a sequential basis over the second quarter of 2009.

Consumer wireless revenues increased to $22.2 million, an increase of 23.9 percent over the third quarter of 2008. The increase in wireless revenues is primarily due to an increase in wireless subscribers. Consumer has added 28,700 wireless lines in service from the end of the third quarter a year ago, an increase of 35.3 percent. Consumer wireless revenues increased $3.5 million sequentially over the second quarter of 2009 not including the accrual of $2.4 million in CETC revenues in the second quarter that were attributable to prior quarters. Consumer added 6,300 wireless customers as compared to the end of the second quarter of 2009.

Network Access
Network access revenues decreased 22.0 percent to $30.3 million as compared to $38.8 million in the third quarter of 2008 and decreased 2.8 percent from the second quarter of 2009.

Voice revenues, as expected, decreased 38.0 percent from the prior year and 9.3 percent from the second 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 from our network. Minutes for the third quarter of 2009 increased 4.2 percent over the second quarter of 2009.

Data revenues for the third quarter of 2009 were down 18.0 percent compared to the third quarter 2008 and decreased 7.4 percent from the second quarter of 2009. The decrease in data revenues from the prior year 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. The sequential decrease is mostly attributable to rate compression.

Wireless revenues, primarily related to roaming traffic, increased $2.2 million over the prior year and increased $1.6 million sequentially.

Commercial
Commercial revenues decreased $2.4 million to $27.8 million as compared to $30.2 million in the third quarter of 2008 and increased $0.9 million over $26.9 million in the second quarter of 2009. The decrease in commercial revenues was primarily due to a decrease in the time and materials category of commercial data services as oil field operators and global outsource customers reduced spending. Commercial video revenues were also down year over year coming off the elections of the prior year. Sequential commercial revenue increases are due to growth in wireless and the return of a portion of the time and materials revenues in the data segment.

Voice revenues increased 1.2 percent over the prior year primarily due to an increase in local service access lines. Long distance minutes decreased 8.3 percent from the prior year and 3.7 percent from the second quarter of 2009. Commercial local access lines increased by 1,100 over the third quarter of 2008 and were stable sequentially.

Commercial video revenues were down $0.7 million from the prior year, as expected, due to the previous years advertising revenues from the November 2008 election as well as the Olympics.

 
Commercial data service revenues – including time and materials charges - totaled $15.8 million in the third quarter of 2009, down $2.3 million from the third quarter of 2008 and up $0.4 million from the second quarter of 2009. The decrease in data revenues from the prior year is primarily 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 $2.0 million for the third quarter, an increase of 37.8 percent over the prior year and an increase of 24.7 percent over the second quarter of 2009. GCI had 10,100 commercial wireless subscribers at the end of the third quarter, an increase of 1,200 subscribers over the second quarter of 2009.

 
 
 


Managed Broadband                             
              Managed broadband revenues totaled $11.7 million in the third quarter of 2009, an increase of 13.8 percent over $10.3 million in the third quarter of 2008. Revenue for the third quarter was up 6.5 percent over the $11.0 million reported in the second quarter of 2009.

Regulated Operations
Regulated operations revenues totaled $6.0 million as compared to $5.9 million in the third quarter of 2008. Adjusted EBITDA totaled $1.3 million for the third quarter of 2009, relatively unchanged from the prior year. Regulated operations has 11,300 local access lines at the end of the third quarter of 2009, a decrease of 300 access lines from the second 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 third quarter of 2009 GCI’s capital expenditures totaled $31.5 million as compared to $29.7 million in the second quarter of 2009. For the nine months ended September 30, 2009, GCI capital expenditures total $85.6 million.

GCI will hold a conference call to discuss the quarter’s results on Thursday, November 5, 2009 beginning at 2 p.m. (Eastern). To access the briefing on November 5, call the conference operator between 1:50 p.m. and 2 p.m. (Eastern Time) at 888-316-9408 (International callers should dial 1-312-470-7175) 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 800-925-1779, access code 7461 (International callers should dial 402-220-3079.)

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)
            
   
September 30,
    
December 31,
  
Assets
  
2009
    
2008
  
             
Current assets:
            
  Cash and cash equivalents
   $ 22,503       29,904  
 
                
  Receivables
     133,405       113,136  
  Less allowance for doubtful receivables
     5,757       2,582  
     Net receivables
     127,648       110,554  
                 
  Deferred income taxes
     13,847       7,843  
  Inventories
     8,111       7,085  
  Prepaid expenses
     5,046       5,960  
  Investment securities
     905       1,563  
  Other current assets
     4,411       647  
       Total current assets
     182,471       163,556  
 
                
Property and equipment in service, net of depreciation
     815,450       793,051  
Construction in progress
     30,026       54,098  
       Net property and equipment
     845,476       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
     19,135       22,976  
Deferred loan and senior notes costs, net of amortization
     5,561       6,496  
Other assets
     20,413       10,724  
    Total other assets
     331,227       324,596  
       Total assets
   $ 1,359,174       1,335,301  
                 
           
(Continued)
  

 
 
 


GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
  
CONSOLIDATED BALANCE SHEETS
  
(Unaudited)
  
(Continued)
  
             
(Amounts in thousands)
            
   
September 30,
    
December 31,
  
Liabilities and Stockholders' Equity
  
2009
    
2008
  
             
Current liabilities:
            
  Current maturities of obligations under long-term debt and capital leases
   $ 13,215       12,857  
  Accounts payable
     29,743       40,497  
  Deferred revenue
     22,021       22,095  
  Accrued payroll and payroll related obligations
     20,287       22,632  
  Accrued liabilities
     10,203       11,043  
  Accrued interest
     2,973       10,224  
  Subscriber deposits
     1,507       1,262  
     Total current liabilities
     99,949       120,610  
 
                
Long-term debt
     732,336       708,406  
Obligations under capital leases, excluding current maturities
     90,499       94,029  
Obligation under capital lease due to related party, excluding current
  maturity
     1,874       1,868  
Deferred income taxes
     98,713       86,187  
Long-term deferred revenue
     50,017       49,998  
Other liabilities
     16,940       15,288  
       Total liabilities
     1,090,328       1,076,386  
 
                
                 
Commitments and contingencies
                
Stockholders’ equity:
                
  Common stock (no par):
                
    Class A. Authorized 100,000 shares; issued 51,889 and 50,062 shares
     at September 30, 2009 and December 31, 2008, respectively;
     outstanding 51,615 and 49,593 shares at September 30, 2009 and
     December 31, 2008, respectively
     150,885       151,262  
                 
    Class B. Authorized 10,000 shares; issued 3,189 and 3,203 shares
     at September 30, 2009 and December 31, 2008, respectively;
     outstanding 3,189 and 3,201 shares at September 30, 2009 and
     December 31, 2008, respectively; convertible on a share-per-share basis
     into Class A common stock
     2,687       2,706  
                 
    Less cost of 274 and 469 Class A and Class B common shares held in
      treasury at September 30, 2009 and December 31, 2008, respectively
     (2,349 )     (2,462 )
 
                
  Paid-in capital
     29,234       27,233  
  Retained earnings
     88,389       80,176  
       Total stockholders' equity
     268,846       258,915  
                 
       Total liabilities and stockholders' equity
   $ 1,359,174       1,335,301  

 
 
 


GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(Unaudited)
               
 
Three Months Ended
  
Nine Months Ended
 
September 30,
  
September 30,
(Amounts in thousands, except per share amounts)
2009
  
2008
  
2009
  
2008
               
Revenues
        150,816
  
        151,660
  
        448,301
  
        428,795
 
              
Cost of goods sold (exclusive of depreciation and amortization shown
  separately below)
          50,167
  
          50,401
  
        145,372
  
        154,160
Selling, general and administrative expenses
          49,045
  
          56,410
  
        157,350
  
        151,076
Depreciation and amortization expense
          30,874
  
          28,869
  
          92,778
  
          83,820
   Operating income
          20,730
  
          15,980
  
          52,801
  
          39,739
 
              
Other income (expense):
              
  Interest expense (including amortization of deferred loan fees)
         (13,176)
  
         (14,134)
  
         (39,096)
  
         (34,820)
  Interest income
                49
  
              386
  
                68
  
              869
     Other expense, net
         (13,127)
  
         (13,748)
  
         (39,028)
  
         (33,951)
               
   Income before income tax expense
            7,603
  
            2,232
  
          13,773
  
            5,788
 
              
Income tax expense
            3,267
  
            1,548
  
            6,519
  
            4,758
 
              
   Net income
            4,336
  
              684
  
            7,254
  
            1,030
 
              
Net (income) loss attributable to the non-controlling interest
                   -
  
             (419)
  
                   -
  
            1,503
 
              
   Net income attributable to General Communication, Inc.
            4,336
  
              265
  
            7,254
  
            2,533
               
  Basic net income per common share
0.08
  
             0.01
  
0.14
  
0.05
  Diluted net income per common share
0.08
  
0.00
  
0.13
  
0.05
               
Common shares used to calculate basic EPS
          53,315
  
          52,371
  
          52,902
  
          52,317
               
Common shares used to calculate diluted EPS
          53,828
  
          53,318
  
          53,457
  
          52,986

 
 
 


GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
  
(Unaudited)
  
(Amounts in thousands)
                                                                    
   
Third Quarter 2009
    
Third Quarter 2008
  
         
Network
          
Managed
    
Regulated
          
Network
          
Managed
    
Regulated
  
   
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
    
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
  
Revenues
                                                                        
  Voice
   $ 12,487       12,197       7,688       -       6,037       38,409       11,582       19,671       7,597       -       5,938       44,788  
  Video
     27,612       -       2,320       -       -       29,932       26,241       -       2,999       -       -       29,240  
  Data
     12,726       14,876       15,801       11,715       -       55,118       10,745       18,148       18,140       10,293       -       57,326  
  Wireless
     22,196       3,190       1,971       -       -       27,357       17,917       959       1,430       -       -       20,306  
    Total
     75,021       30,263       27,780       11,715       6,037       150,816       66,485       38,778       30,166       10,293       5,938       151,660  
                                                                                                 
Cost of goods
  sold (exclusive
  of depreciation
  and amortization)
     24,686       7,536       13,310       2,893       1,742       50,167       20,574       10,501       15,283       2,651       1,392       50,401  
                                                                                                 
    Contribution
     50,335       22,727       14,470       8,822       4,295       100,649       45,911       28,277       14,883       7,642       4,546       101,259  
                                                                                                 
Less SG&A
     26,547       8,255       8,090       3,157       2,996       49,045       28,794       11,398       9,356       3,636       3,226       56,410  
Add other
  income
  (expense)
     -       -       -       -       -       -       (184 )     (164 )     (71 )     -       -       (419 )
    EBITDA
     23,788       14,472       6,380       5,665       1,299       51,604       16,933       16,715       5,456       4,006       1,320       44,430  
                                                                                                 
Add share-based
  compensation
     (554 )     (388 )     (226 )     (164 )     -       (1,332 )     1,075       920       488       211       -       2,694  
Add non-cash
  contribution
     -       -       -       -       -       -       267       234       101       38       -       640  
    Adjusted EBITDA
   $ 23,234       14,084       6,154       5,501       1,299       50,272       18,275       17,869       6,045       4,255       1,320       47,764  
                                                                                                 
                                                                                                 
 
 
 
 
 
 
                                                                                                 
                                                                                                 
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
    
SUPPLEMENTAL SCHEDULES
(Unaudited)
    
(Amounts in thousands)
                                                                                          
   
Third Quarter 2009
      
Second Quarter 2009
    
           
Network
            
Managed
    
Regulated
            
Network
            
Managed
    
Regulated
  
   
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
    
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
  
Revenues
                                                                                                
  Voice
   $ 12,487       12,197       7,688       -       6,037       38,409       12,988       13,444       7,701       -       6,368       40,501  
  Video
     27,612       -       2,320       -       -       29,932       27,132       -       2,221       -       -       29,353  
  Data
     12,726       14,876       15,801       11,715       -       55,118       12,166       16,073       15,409       10,998       -       54,646  
  Wireless
     22,196       3,190       1,971       -       -       27,357       21,113       1,603       1,580       -       -       24,296  
    Total
     75,021       30,263       27,780       11,715       6,037       150,816       73,399       31,120       26,911       10,998       6,368       148,796  
                                                                                                 
Cost of goods
  sold (exclusive
  of depreciation
  and amortization)
     24,686       7,536       13,310       2,893       1,742       50,167       24,011       6,556       12,977       2,357       1,447       47,348  
                                                                                                 
    Contribution
     50,335       22,727       14,470       8,822       4,295       100,649       49,388       24,564       13,934       8,641       4,921       101,448  
                                                                                                 
Less SG&A
     26,547       8,255       8,090       3,157       2,996       49,045       27,740       9,370       8,600       3,411       2,598       51,719  
Add other
  income
  (expense)
     -       -       -       -       -       -       -       -       -       -       -       -  
    EBITDA
     23,788       14,472       6,380       5,665       1,299       51,604       21,648       15,194       5,334       5,230       2,323       49,729  
                                                                                                 
Add share-based
  compensation
     (554 )     (388 )     (226 )     (164 )     -       (1,332 )     607       452       246       122       -       1,427  
Add non-cash
  contribution
     -       -       -       -       -       -       37       25       12       6       -       80  
    Adjusted EBITDA
   $ 23,234       14,084       6,154       5,501       1,299       50,272       22,292       15,671       5,592       5,358       2,323       51,236  
                                                                                                 
                                                                                                 
 
 
 
 
 
 
                                                                                                 
                                                                                                 
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
    
SUPPLEMENTAL SCHEDULES
(Unaudited)
    
(Amounts in thousands)
                                                                                          
   
Nine Months Ended September 30, 2009
      
Nine Months Ended September 30, 2008
    
           
Network
            
Managed
    
Regulated
            
Network
            
Managed
    
Regulated
  
   
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
    
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
  
Revenues
                                                                                                
  Voice
   $ 39,390       39,975       23,373       -       18,574       121,312       35,560       64,826       22,091       -       7,817       130,294  
  Video
     82,114       -       6,591       -       -       88,705       77,556       -       6,968       -       -       84,524  
  Data
     36,654       48,903       47,725       33,323       -       166,605       31,227       52,975       50,933       26,953       -       162,088  
  Wireless
     60,981       5,704       4,994       -       -       71,679       45,638       2,042       4,209       -       -       51,889  
    Total
     219,139       94,582       82,683       33,323       18,574       448,301       189,981       119,843       84,201       26,953       7,817       428,795  
                                                                                                 
Cost of goods
  sold (exclusive
  of depreciation
  and amortization)
     72,100       20,776       39,642       7,939       4,915       145,372       68,964       32,285       43,266       7,955       1,690       154,160  
                                                                                                 
    Contribution
     147,039       73,806       43,041       25,384       13,659       302,929       121,017       87,558       40,935       18,998       6,127       274,635  
                                                                                                 
Less SG&A
     83,772       27,900       26,413       10,760       8,505       157,350       80,201       30,564       26,279       9,584       4,448       151,076  
Add other
  income
  (expense)
     -       -       -       -       -       -       660       591       252       -       -       1,503  
    EBITDA
     63,267       45,906       16,628       14,624       5,154       145,579       41,476       57,585       14,908       9,414       1,679       125,062  
                                                                                                 
Add share-based
  compensation
     817       617       346       117       -       1,897       2,209       1,863       1,057       418       -       5,547  
Add non-cash
  contribution
     220       151       73       36       -       480       267       234       101       38       -       640  
    Adjusted EBITDA
   $ 64,304       46,674       17,047       14,777       5,154       147,956       43,952       59,682       16,066       9,870       1,679       131,249  

 
 
 
 

 
KEY PERFORMANCE INDICATORS
  
(Unaudited)
  
                                           
                     
September 30, 2009
    
September 30, 2009
  
                     
as compared to
    
as compared to
  
   
September 30,
    
September 30,
    
June 30,
    
September 30,
    
June 30,
    
September 30,
    
June 30,
  
   
2009
    
2008
    
2009
    
2008
    
2009
    
2008
    
2009
  
Consumer
                                          
Voice
                                          
Long-distance subscribers
     89,900       89,300       88,600       600       1,300       0.7 %     1.5 %
Total local access lines in service
     82,700       79,200       81,200       3,500       1,500       4.4 %     1.8 %
Local access lines in service on GCI facilities
     72,700       64,300       70,300       8,400       2,400       13.1 %     3.4 %
                                                         
Video
                                                        
Basic subscribers
     129,600       131,200       129,700       (1,600 )     (100 )     -1.2 %     -0.1 %
Digital programming tier subscribers
     77,600       70,100       76,200       7,500       1,400       10.7 %     1.8 %
HD/DVR converter boxes
     77,000       62,900       74,400       14,100       2,600       22.4 %     3.5 %
Homes passed
     231,400       227,400       230,400       4,000       1,000       1.8 %     0.4 %
                                                         
Data
                                                        
Cable modem subscribers
     97,900       92,100       94,900       5,800       3,000       6.3 %     3.2 %
                                                         
Wireless
                                                        
Wireless lines in service
     109,900       81,200       103,600       28,700       6,300       35.3 %     6.1 %
                                                         
Network Access Services
                                                        
Data:
                                                        
Total ISP access lines in service
     1,700       1,800       1,700       (100 )     -       -5.6 %     0.0 %
                                                         
Commercial
                                                        
Voice:
                                                        
Long-distance subscribers
     9,700       10,200       9,600       (500 )     100       -4.9 %     1.0 %
Total local access lines in service
     47,300       46,200       47,300       1,100       -       2.4 %     0.0 %
Local access lines in service on GCI facilities
     19,000       17,900       18,400       1,100       600       6.1 %     3.3 %
                                                         
Video
                                                        
Hotels and mini-headend
  subscribers
     18,000       15,000       20,300       3,000       (2,300 )     20.0 %     -11.3 %
Basic subscribers
     1,700       2,000       1,700       (300 )     -       -15.0 %     0.0 %
   Total basic subscribers
     19,700       17,000       22,000       2,700       (2,300 )     15.9 %     -10.5 %
                                                         
Data
                                                        
Cable modem subscribers
     10,600       9,000       10,400       1,600       200       17.8 %     1.9 %
                                                         
Wireless
                                                        
Wireless lines in service
     10,100       6,900       8,900       3,200       1,200       46.4 %     13.5 %
                                                         
Regulated Operations
                                                        
Voice:
                                                        
Total local access lines in service
     11,300       12,300       11,600       (1,000 )     (300 )     -8.1 %     -2.6 %
                                                         
                           
September 30, 2009
    
September 30, 2009
  
   
Three Months Ended
    
as Compared to
    
as Compared to
  
   
September 30,
    
September 30,
    
June 30,
    
September 30,
    
June 30,
    
September 30,
    
June 30,
  
      2009       2008       2009       2008       2009       2008       2009  
Consumer
                                                        
Voice
                                                        
Long-distance minutes carried
  (in millions)
     28.0       31.2       28.3       (3.2 )     (0.3 )     -10.3 %     -1.1 %
                                                         
Video
                                                        
Average monthly gross revenue per
  subscriber
   $ 70.95     $ 67.00     $ 69.59     $ 3.95     $ 1.36       5.9 %     2.0 %
                                                         
Wireless
                                                        
Average monthly gross revenue per
  subscriber
   $ 59.03     $ 55.21     $ 57.88     $ 3.82     $ 1.15       6.9 %     2.0 %
                                                         
Network Access Services
                                                        
Voice
                                                        
Long-distance minutes carried
  (in millions)
     224.6       255.8       215.6       (31.2 )     9.0       -12.2 %     4.2 %
                                                         
Commercial
                                                        
Voice:
                                                        
Long-distance minutes carried
  (in millions)
     30.6       33.3       31.8       (2.7 )     (1.2 )     -8.1 %     -3.8 %
                                                         
Total
                                                        
Long-distance minutes carried
  (in millions)
     283.2       320.3       275.7       (37.1 )     7.5       -11.6 %     2.7 %


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


   
Three Months Ended
  
   
September 30,
2009
    
September 30,
2008
    
June 30,
2009
  
Net income attributable to General Communication, Inc.
   $ 4.3       0.3       2.6  
Net income attributable to the non-controlling interest
     ---       0.4       ---  
Net income
     4.3       0.7       2.6  
Income tax expense
     3.3       1.5       2.7  
Income before income tax expense
     7.6       2.2       5.3  
                         
Other (income) expense:
                        
Interest expense
(including amortization
    of deferred loan fees)
     13.2       14.1       13.2  
Interest income
     (0.1 )     (0.4 )     ---  
Other expense, net
     13.1       13.7       13.2  
                         
Operating income
     20.7       15.9       18.5  
Depreciation and amortization expense
     30.9       28.9       31.2  
Net income attributable to the non-controlling interest
     ---       (0.4 )     ---  
                         
EBITDA (Note 2)
     51.6       44.4       49.7  
Share-based compensation expense
     (1.3 )     2.7       1.4  
Non-cash contribution adjustment
     ---       0.7       0.1  
Adjusted EBITDA (Note 1)
   $ 50.3       47.8       51.2  


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


   
Nine Months Ended
  
   
September 30,
2009
    
September 30,
2008
  
Net income attributable to General Communication, Inc.
   $ 7.3       2.5  
Net income attributable to the non-controlling interest
     ---       (1.5 )
Net income
     7.3       1.0  
Income tax expense
     6.5       4.8  
Income before income tax expense
     13.8       5.8  
                 
Other (income) expense:
                
Interest expense
 (including amortization
    of deferred loan fees)
     39.0       34.8  
Interest income
     (0.1 )     (0.8 )
Other expense, net
     38.9       34.0  
                 
Operating income
     52.7       39.8  
Depreciation and amortization expense
     92.9       83.8  
Net income attributable to the non-controlling interest
     ---       1.5  
                 
EBITDA (Note 2)
     145.6       125.1  
Share-based compensation expense
     1.9       5.5  
Non-cash contribution adjustment
     0.5       0.6  
Adjusted EBITDA (Note 1)
   $ 148.0       131.2  


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.