·
|
Consolidated revenue of $152.4 million
|
·
|
Adjusted EBITDA of $51.1 million
|
·
|
Net income of $1.7 million or $0.03 per diluted share
|
·
|
Consumer revenues for the first quarter of 2010 totaled $80.4 million, an increase of 13.6 percent over the first quarter of 2009 and an increase of 6.0 percent over the fourth quarter of 2009. Revenue increases were strong for voice, video, data and wireless services.
|
·
|
GCI added 2,700 wireless subscribers in the first quarter of 2010. Wireless subscribers totaled 128,100 at the end of the quarter.
|
·
|
GCI won a State of Alaska contract for approximately 3,500 wireless phones. The phones are expected to be provisioned on GCI’s network before the end of the third quarter of 2010.
|
·
|
Total GCI access lines were 146,700 at the end of the first quarter of 2010, representing an estimated 35 percent share of the total access line market in Alaska. Access lines increased by 2,000 lines over the fourth quarter of 2009.
|
·
|
GCI’s facilities-based access lines totaled 109,900, representing 75 percent of its 146,700 total access lines at the end of the first quarter of 2010, an increase of 2,600 lines over the fourth quarter of 2009 and an increase of 8,700 lines when compared to the end of the first quarter of the prior year.
|
·
|
GCI had 113,600 consumer and commercial cable modem customers at the end of the first quarter of 2010, an increase of 2,900 over the 110,700 cable modem customers at the end of the fourth quarter 2009. Average monthly revenue per cable modem totaled $45.85 for the first quarter of 2010 as compared to $40.97 in the prior year, an increase of 11.9 percent and is up 0.5 percent over $45.63 for the fourth quarter of 2009.
|
·
|
GCI had 149,200 basic video subscribers at the end of the first quarter of 2010, a decrease of 700 from the first quarter of 2009 and an increase of 1,600 over the fourth quarter of 2009.
|
·
|
GCI repurchased 52,500 shares of its Class A common shares at a cost of approximately $0.3 million or $5.78 per share. Depending on company performance, market conditions, liquidity, and subject to board oversight GCI may continue repurchasing its own shares.
|
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
(Unaudited)
|
||||||||
(Amounts in thousands)
|
||||||||
March 31,
|
December 31,
|
|||||||
Assets
|
2010
|
2009
|
||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 68,565 | 48,776 | |||||
|
||||||||
Receivables
|
136,392 | 147,859 | ||||||
Less allowance for doubtful receivables
|
8,023 | 7,060 | ||||||
Net receivables
|
128,369 | 140,799 | ||||||
Deferred income taxes
|
17,618 | 17,618 | ||||||
Prepaid expenses
|
7,217 | 4,491 | ||||||
Inventories
|
7,047 | 9,278 | ||||||
Investment securities
|
905 | 895 | ||||||
Other current assets
|
4,676 | 4,977 | ||||||
Total current assets
|
234,397 | 226,834 | ||||||
|
||||||||
Property and equipment in service, net of depreciation
|
812,132 | 823,080 | ||||||
Construction in progress
|
24,212 | 26,161 | ||||||
Net property and equipment
|
836,344 | 849,241 | ||||||
|
||||||||
Cable certificates
|
191,565 | 191,565 | ||||||
Goodwill
|
73,452 | 73,452 | ||||||
Wireless licenses
|
25,967 | 25,967 | ||||||
Other intangible assets, net of amortization
|
18,371 | 19,561 | ||||||
Deferred loan and senior notes costs, net of amortization
|
14,802 | 13,168 | ||||||
Other assets
|
18,980 | 18,609 | ||||||
Total other assets
|
343,137 | 342,322 | ||||||
Total assets
|
$ | 1,413,878 | 1,418,397 | |||||
(Continued)
|
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
(Unaudited)
|
||||||||
(Continued)
|
||||||||
(Amounts in thousands)
|
||||||||
March 31,
|
December 31,
|
|||||||
Liabilities and Stockholders' Equity
|
2010
|
2009
|
||||||
Current liabilities:
|
||||||||
Current maturities of obligations under long-term debt and capital leases
|
$ | 10,264 | 9,892 | |||||
Accounts payable
|
26,881 | 30,697 | ||||||
Deferred revenue
|
21,627 | 21,404 | ||||||
Accrued interest
|
18,084 | 14,821 | ||||||
Accrued payroll and payroll related obligations
|
17,256 | 21,874 | ||||||
Accrued liabilities
|
11,629 | 15,037 | ||||||
Subscriber deposits
|
1,415 | 1,549 | ||||||
Total current liabilities
|
107,156 | 115,274 | ||||||
|
||||||||
Long-term debt, net
|
774,363 | 771,247 | ||||||
Obligations under capital leases, excluding current maturities
|
88,020 | 89,279 | ||||||
Obligation under capital lease due to related party
|
1,878 | 1,876 | ||||||
Deferred income taxes
|
100,221 | 100,386 | ||||||
Long-term deferred revenue
|
51,824 | 52,342 | ||||||
Other liabilities
|
21,607 | 21,676 | ||||||
Total liabilities
|
1,145,069 | 1,152,080 | ||||||
|
||||||||
Commitments and contingencies
|
||||||||
Stockholders’ equity:
|
||||||||
Common stock (no par):
|
||||||||
Class A. Authorized 100,000 shares; issued 51,913 and 51,899 shares
at March 31, 2010 and December 31, 2009, respectively; outstanding
51,589 and 51,627 shares at March 31, 2010 and December 31,
2009, respectively
|
149,411 | 150,911 | ||||||
Class B. Authorized 10,000 shares; issued and outstanding 3,185 and
3,186 shares at March 31, 2010 and December 31, 2009, respectively;
convertible on a share-per-share basis into Class A common stock
|
2,683 | 2,684 | ||||||
Less cost of 324 and 272 Class A common shares held in
treasury at March 31, 2010 and December 31, 2009, respectively
|
(2,340 | ) | (2,339 | ) | ||||
|
||||||||
Paid-in capital
|
33,034 | 30,410 | ||||||
Retained earnings
|
86,021 | 84,651 | ||||||
Total stockholders' equity
|
268,809 | 266,317 | ||||||
Total liabilities and stockholders' equity
|
$ | 1,413,878 | 1,418,397 |
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED INCOME STATEMENT
|
||||||||
(Unaudited)
|
||||||||
Three Months Ended
|
||||||||
March 31,
|
||||||||
(Amounts in thousands, except per share amounts)
|
2010
|
2009
|
||||||
Revenues
|
$ | 152,419 | 148,689 | |||||
|
||||||||
Cost of goods sold (exclusive of depreciation and amortization shown
separately below)
|
48,907 | 47,857 | ||||||
Selling, general and administrative expenses
|
53,257 | 56,586 | ||||||
Depreciation and amortization expense
|
31,126 | 30,734 | ||||||
Operating income
|
19,129 | 13,512 | ||||||
|
||||||||
Other income (expense):
|
||||||||
Interest expense (including amortization of deferred loan fees)
|
(17,680 | ) | (12,647 | ) | ||||
Interest income
|
61 | 8 | ||||||
Other expense, net
|
(17,619 | ) | (12,639 | ) | ||||
Income before income tax expense or benefit
|
1,510 | 873 | ||||||
|
||||||||
Income tax (expense) benefit
|
164 | (519 | ) | |||||
|
||||||||
Net income
|
1,674 | 354 | ||||||
|
||||||||
Basic net income per share of Class A and Class B common stock:
|
||||||||
Basic net income per common share
|
$ | 0.03 | 0.01 | |||||
Diluted net income per share of Class A and Class B common stock:
|
||||||||
Diluted net income per common share
|
$ | 0.03 | 0.00 | |||||
Common shares used to calculate basic EPS
|
54,764 | 52,434 | ||||||
Common shares used to calculate diluted EPS
|
55,035 | 52,810 |
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||||||||||||||||||||||||||
SUPPLEMENTAL SCHEDULES
|
||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||||||||||||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||||||||||||||||||||||||||||||||||
First Quarter 2010
|
First Quarter 2009
|
|||||||||||||||||||||||||||||||||||||||||||||||
Network
|
Managed
|
Regulated
|
Network
|
Managed
|
Regulated
|
|||||||||||||||||||||||||||||||||||||||||||
Consumer
|
Access
|
Commercial
|
Broadband
|
Operations
|
Totals
|
Consumer
|
Access
|
Commercial
|
Broadband
|
Operations
|
Totals
|
|||||||||||||||||||||||||||||||||||||
Revenues
|
||||||||||||||||||||||||||||||||||||||||||||||||
Voice
|
$ | 13,856 | 6,659 | 7,843 | - | 6,060 | 34,418 | $ | 13,915 | 14,334 | 7,984 | - | 6,169 | 42,402 | ||||||||||||||||||||||||||||||||||
Video
|
29,024 | - | 2,317 | - | - | 31,341 | 27,370 | - | 2,050 | - | - | 29,420 | ||||||||||||||||||||||||||||||||||||
Data
|
14,126 | 16,329 | 15,502 | 12,085 | - | 58,042 | 11,762 | 17,954 | 16,515 | 10,610 | - | 56,841 | ||||||||||||||||||||||||||||||||||||
Wireless
|
23,362 | 3,195 | 2,061 | - | - | 28,618 | 17,672 | 911 | 1,443 | - | - | 20,026 | ||||||||||||||||||||||||||||||||||||
Total
|
80,368 | 26,183 | 27,723 | 12,085 | 6,060 | 152,419 | 70,719 | 33,199 | 27,992 | 10,610 | 6,169 | 148,689 | ||||||||||||||||||||||||||||||||||||
Cost of goods
sold
|
25,633 | 6,528 | 12,371 | 3,218 | 1,157 | 48,907 | 23,403 | 6,684 | 13,355 | 2,689 | 1,726 | 47,857 | ||||||||||||||||||||||||||||||||||||
Contribution
|
54,735 | 19,655 | 15,352 | 8,867 | 4,903 | 103,512 | 47,316 | 26,515 | 14,637 | 7,921 | 4,443 | 100,832 | ||||||||||||||||||||||||||||||||||||
Less SG&A
|
29,166 | 7,844 | 9,144 | 4,043 | 3,060 | 53,257 | 29,486 | 10,275 | 9,723 | 4,191 | 2,911 | 56,586 | ||||||||||||||||||||||||||||||||||||
EBITDA
|
25,569 | 11,811 | 6,208 | 4,824 | 1,843 | 50,255 | 17,830 | 16,240 | 4,914 | 3,730 | 1,532 | 44,246 | ||||||||||||||||||||||||||||||||||||
Add share-based
compensation
|
384 | 180 | 149 | 90 | - | 803 | 765 | 553 | 326 | 158 | - | 1,802 | ||||||||||||||||||||||||||||||||||||
Add non-cash
contribution adjustment
|
- | - | - | - | - | - | 183 | 126 | 61 | 30 | - | 400 | ||||||||||||||||||||||||||||||||||||
Adjusted EBITDA
|
$ | 25,953 | 11,991 | 6,357 | 4,914 | 1,843 | 51,058 | $ | 18,778 | 16,919 | 5,301 | 3,918 | 1,532 | 46,448 | ||||||||||||||||||||||||||||||||||
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||||||||||||||||||||||||||
SUPPLEMENTAL SCHEDULES
|
||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||||||||||||||||||||||||||
(Amounts in thousands)
|
||||||||||||||||||||||||||||||||||||||||||||||||
First Quarter 2010
|
Fourth Quarter 2009
|
|||||||||||||||||||||||||||||||||||||||||||||||
Network
|
Managed
|
Regulated
|
Network
|
Managed
|
Regulated
|
|||||||||||||||||||||||||||||||||||||||||||
Consumer
|
Access
|
Commercial
|
Broadband
|
Operations
|
Totals
|
Consumer
|
Access
|
Commercial
|
Broadband
|
Operations
|
Totals
|
|||||||||||||||||||||||||||||||||||||
Revenues
|
||||||||||||||||||||||||||||||||||||||||||||||||
Voice
|
$ | 13,856 | 6,659 | 7,843 | - | 6,060 | 34,418 | $ | 13,264 | 9,862 | 7,457 | - | 5,230 | 35,813 | ||||||||||||||||||||||||||||||||||
Video
|
29,024 | - | 2,317 | - | - | 31,341 | 28,872 | - | 2,584 | - | - | 31,456 | ||||||||||||||||||||||||||||||||||||
Data
|
14,126 | 16,329 | 15,502 | 12,085 | - | 58,042 | 13,673 | 14,959 | 15,658 | 11,552 | - | 55,842 | ||||||||||||||||||||||||||||||||||||
Wireless
|
23,362 | 3,195 | 2,061 | - | - | 28,618 | 19,977 | 2,669 | 1,753 | - | - | 24,399 | ||||||||||||||||||||||||||||||||||||
Total
|
80,368 | 26,183 | 27,723 | 12,085 | 6,060 | 152,419 | 75,786 | 27,490 | 27,452 | 11,552 | 5,230 | 147,510 | ||||||||||||||||||||||||||||||||||||
Cost of goods
sold
|
25,633 | 6,528 | 12,371 | 3,218 | 1,157 | 48,907 | 24,794 | 6,477 | 12,603 | 3,196 | 1,234 | 48,304 | ||||||||||||||||||||||||||||||||||||
Contribution
|
54,735 | 19,655 | 15,352 | 8,867 | 4,903 | 103,512 | 50,992 | 21,013 | 14,849 | 8,356 | 3,996 | 99,206 | ||||||||||||||||||||||||||||||||||||
Less SG&A
|
29,166 | 7,844 | 9,144 | 4,043 | 3,060 | 53,257 | 29,111 | 10,447 | 8,950 | 3,691 | 3,122 | 55,321 | ||||||||||||||||||||||||||||||||||||
EBITDA
|
25,569 | 11,811 | 6,208 | 4,824 | 1,843 | 50,255 | 21,881 | 10,566 | 5,899 | 4,665 | 874 | 43,885 | ||||||||||||||||||||||||||||||||||||
Add share-based
compensation
|
384 | 180 | 149 | 90 | - | 803 | 328 | 274 | 203 | 102 | - | 907 | ||||||||||||||||||||||||||||||||||||
Add non-cash
contribution adjustment
|
- | - | - | - | - | - | 74 | 49 | 25 | 12 | - | 160 | ||||||||||||||||||||||||||||||||||||
Adjusted EBITDA
|
$ | 25,953 | 11,991 | 6,357 | 4,914 | 1,843 | 51,058 | $ | 22,283 | 10,889 | 6,127 | 4,779 | 874 | 44,952 |
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
|
||||||||||||||||||||||||||||
KEY PERFORMANCE INDICATORS
|
||||||||||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||||||||||
March 31, 2010
|
March 31, 2010
|
|||||||||||||||||||||||||||
as compared to
|
as compared to
|
|||||||||||||||||||||||||||
March 31,
|
March 31,
|
December 31,
|
March 31,
|
December 31,
|
March 31,
|
December 31,
|
||||||||||||||||||||||
2010
|
2009
|
2009
|
2009
|
2009
|
2009
|
2009
|
||||||||||||||||||||||
Consumer
|
||||||||||||||||||||||||||||
Voice
|
||||||||||||||||||||||||||||
Long-distance subscribers
|
91,200 | 88,700 | 90,500 | 2,500 | 700 | 2.8 | % | 0.8 | % | |||||||||||||||||||
Total local access lines in service
|
85,800 | 81,400 | 84,200 | 4,400 | 1,600 | 5.4 | % | 1.9 | % | |||||||||||||||||||
Local access lines in service on GCI facilities
|
77,300 | 69,900 | 75,200 | 7,400 | 2,100 | 10.6 | % | 2.8 | % | |||||||||||||||||||
Video
|
||||||||||||||||||||||||||||
Basic subscribers
|
131,400 | 130,000 | 130,500 | 1,400 | 900 | 1.1 | % | 0.7 | % | |||||||||||||||||||
Digital programming tier subscribers
|
81,400 | 76,100 | 79,600 | 5,300 | 1,800 | 7.0 | % | 2.3 | % | |||||||||||||||||||
HD/DVR converter boxes
|
86,000 | 72,100 | 81,500 | 13,900 | 4,500 | 19.3 | % | 5.5 | % | |||||||||||||||||||
Homes passed
|
232,900 | 229,700 | 232,400 | 3,200 | 500 | 1.4 | % | 0.2 | % | |||||||||||||||||||
Data
|
||||||||||||||||||||||||||||
Cable modem subscribers
|
103,100 | 94,300 | 100,200 | 8,800 | 2,900 | 9.3 | % | 2.9 | % | |||||||||||||||||||
Wireless
|
||||||||||||||||||||||||||||
Wireless lines in service
|
117,500 | 97,100 | 115,100 | 20,400 | 2,400 | 21.0 | % | 2.1 | % | |||||||||||||||||||
Network Access Services
|
||||||||||||||||||||||||||||
Data:
|
||||||||||||||||||||||||||||
Total ISP access lines in service
|
1,700 | 1,700 | 1,700 | - | - | 0.0 | % | 0.0 | % | |||||||||||||||||||
Commercial
|
||||||||||||||||||||||||||||
Voice:
|
||||||||||||||||||||||||||||
Long-distance subscribers
|
9,400 | 9,700 | 9,500 | (300 | ) | (100 | ) | -3.1 | % | -1.1 | % | |||||||||||||||||
Total local access lines in service
|
48,400 | 46,900 | 47,700 | 1,500 | 700 | 3.2 | % | 1.5 | % | |||||||||||||||||||
Local access lines in service on GCI facilities
|
20,400 | 18,000 | 19,600 | 2,400 | 800 | 13.3 | % | 4.1 | % | |||||||||||||||||||
Video
|
||||||||||||||||||||||||||||
Hotels and mini-headend
subscribers
|
16,100 | 18,300 | 15,400 | (2,200 | ) | 700 | -12.0 | % | 4.5 | % | ||||||||||||||||||
Basic subscribers
|
1,700 | 1,600 | 1,700 | 100 | - | 6.3 | % | 0.0 | % | |||||||||||||||||||
Total basic subscribers
|
17,800 | 19,900 | 17,100 | (2,100 | ) | 700 | -10.6 | % | 4.1 | % | ||||||||||||||||||
Data
|
||||||||||||||||||||||||||||
Cable modem subscribers
|
10,500 | 10,200 | 10,500 | 300 | - | 2.9 | % | 0.0 | % | |||||||||||||||||||
Wireless
|
||||||||||||||||||||||||||||
Wireless lines in service
|
10,600 | 8,000 | 10,300 | 2,600 | 300 | 32.5 | % | 2.9 | % | |||||||||||||||||||
Regulated Operations
|
||||||||||||||||||||||||||||
Voice:
|
||||||||||||||||||||||||||||
Total local access lines in service
|
10,800 | 11,900 | 11,100 | (1,100 | ) | (300 | ) | -9.2 | % | -2.7 | % | |||||||||||||||||
March 31, 2010
|
March 31, 2010
|
|||||||||||||||||||||||||||
Three Months Ended
|
as Compared to
|
as Compared to
|
||||||||||||||||||||||||||
March 31,
|
March 31,
|
December 31,
|
March 31,
|
December 31,
|
March 31,
|
December 31,
|
||||||||||||||||||||||
2010 | 2009 | 2009 | 2009 | 2009 | 2009 | 2009 | ||||||||||||||||||||||
Consumer
|
||||||||||||||||||||||||||||
Voice
|
||||||||||||||||||||||||||||
Long-distance minutes carried
(in millions)
|
28.3 | 29.6 | 28.8 | (1.3 | ) | (0.5 | ) | -4.4 | % | -1.7 | % | |||||||||||||||||
Video
|
||||||||||||||||||||||||||||
Average monthly gross revenue per
subscriber
|
$ | 73.80 | $ | 69.50 | $ | 73.57 | $ | 4.30 | $ | 0.23 | 6.2 | % | 0.3 | % | ||||||||||||||
Wireless
|
||||||||||||||||||||||||||||
Average monthly gross revenue per
subscriber
|
$ | 59.99 | $ | 58.63 | $ | 57.04 | $ | 1.36 | $ | 2.95 | 2.3 | % | 5.2 | % | ||||||||||||||
Network Access Services
|
||||||||||||||||||||||||||||
Voice
|
||||||||||||||||||||||||||||
Long-distance minutes carried
(in millions)
|
193.6 | 200.4 | 199.3 | (6.8 | ) | (5.7 | ) | -3.4 | % | -2.9 | % | |||||||||||||||||
Commercial
|
||||||||||||||||||||||||||||
Voice:
|
||||||||||||||||||||||||||||
Long-distance minutes carried
(in millions)
|
29.6 | 32.2 | 28.6 | (2.6 | ) | 1.0 | -8.1 | % | 3.5 | % | ||||||||||||||||||
Total
|
||||||||||||||||||||||||||||
Long-distance minutes carried
(in millions)
|
251.5 | 262.2 | 256.7 | (10.7 | ) | (5.2 | ) | -4.1 | % | -2.0 | % |
Three Months Ended
|
||||||||||||
March 31,
2010
|
March 31,
2009
|
December 31,
2009
|
||||||||||
Net income (loss)
|
$ | 1.7 | 0.4 | (3.7 | ) | |||||||
Income tax expense (benefit)
|
(0.2 | ) | 0.5 | (2.6 | ) | |||||||
Income (loss) before income tax expense (benefit)
|
1.5 | 0.9 | (6.3 | ) | ||||||||
Other (income) expense:
|
||||||||||||
Interest expense
(including amortization and write-off of deferred loan fees)
|
17.7 | 12.6 | 19.7 | |||||||||
Interest income
|
--- | --- | (0.1 | ) | ||||||||
Other expense, net
|
17.7 | 12.6 | 19.6 | |||||||||
Operating income
|
19.2 | 13.5 | 13.3 | |||||||||
Depreciation and amortization expense
|
31.1 | 30.7 | 30.6 | |||||||||
EBITDA (Note 2)
|
50.3 | 44.2 | 43.9 | |||||||||
Share-based compensation
|
0.8 | 1.8 | 0.9 | |||||||||
Non-cash contribution adjustment
|
--- | 0.4 | 0.2 | |||||||||
Adjusted EBITDA (Note 1)
|
$ | 51.1 | 46.4 | 45.0 |
|
(1) EBITDA (as defined in Note 2 below) before deducting share-based compensation and non-cash contribution adjustment.
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(2) Earnings Before Interest, Taxes, Depreciation and Amortization is the sum of Net Income (Loss), Interest Expense (including Amortization and Write-off 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, 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.
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