Exhibit 99.1


August 4, 2010

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 2010 FINANCIAL RESULTS

·  
Consolidated revenue of $162.3 million
·  
Adjusted EBITDA of $57.4 million
·  
Net income of $1.9 million or $0.04 per diluted share

ANCHORAGE, AK – General Communication, Inc. (“GCI”) (NASDAQ:GNCMA) today reported its second quarter 2010 results with revenues increasing to $162.3 million and adjusted EBITDA increasing to $57.4 million.

“Five years ago GCI was reselling another provider’s wireless products and had only 12,000 customers,” said GCI president Ron Duncan. “Since then we have diligently built the only statewide wireless network and customers have responded in droves. In those five years we have welcomed 120,000 new customers growing our base ten fold. While we were a little late to build our own network we worked aggressively to create the best statewide wireless system and are proud to acknowledge that Alaskans have rewarded GCI by making us the second largest wireless company in the state.”

            “GCI’s wireless results have been a leading indicator of our financial performance for several quarters and this move to second place in wireless fits nicely with announcing yet another record high quarter of revenues and EBITDA. I couldn’t be more pleased with our performance and I’d like to thank the customers, contractors and employees who have made it possible. Watch out number one, here we come!”

Revenues for the second quarter of 2010 increased 9.1 percent over revenues of $148.8 million in the second quarter of 2009. Adjusted EBITDA increased $6.1 million or 11.9 percent over the second quarter of 2009 EBITDA of $51.2 million. The increase in revenues and EBITDA was partly due to a $4.7 million change in the estimate of the amount due to GCI under the USF high-cost area program, offset by a $1.7 million reserve adjustment for amounts receivable under a contract with a large customer. The USF estimate change impacted the consumer and commercial segments. The contract reserve adjustment was attributed to the managed broadband segment.

GCI’s second quarter 2010 net income totaled $1.9 million or earnings per diluted share of $0.04 and compares to net income of $2.6 million, or earnings per diluted share of $0.05 for the same period of 2009.

Second quarter 2010 revenues increased $9.9 million or 6.5 percent over total revenues of $152.4 million in the first quarter of 2010. Adjusted EBITDA increased $6.3 million or 12.3 percent over adjusted EBITDA of $51.1 million in the first quarter of 2010. The sequential increase in revenues and EBITDA was favorably impacted by the aforementioned adjustments.

 “GCI anticipated revenues of $610 million to $620 million and adjusted EBITDA of $200 to $204 million for the year 2010.” said Duncan. “The company's practice is to provide guidance only on an annual basis, however our continued success in the consumer business, improvements in the commercial business and stabilizing trends in the network access business lead us to conclude that GCI is likely to slightly
 
 
 
 
exceed its guidance for the year.”

           “Alaska’s economy continues to perform well when benchmarked against the rest of the country. Alaska jobs are growing again and energy prices appear to be stabilizing at levels that will support the state’s operating budget.”
 
  Highlights
·  
GCI became the second largest wireless provider in Alaska with the addition of 3,100 wireless subscribers in the second quarter of 2010. Wireless subscribers totaled 131,200 at the end of the quarter.

·  
Consumer revenues for the second quarter of 2010 totaled $87.1 million, an increase of 18.7 percent over the second quarter of 2009 and an increase of 8.4 percent over the first quarter of 2010. Revenue increases were strong for all consumer products and services.

·  
GCI had 145,400 access lines at the end of the second quarter of 2010, representing an estimated 35 percent share of the total access line market in Alaska. Access lines decreased by 1,300 lines from the first quarter of 2010.

·  
GCI’s facilities-based access lines totaled 109,700, representing 75 percent of its total access lines at the end of the second quarter of 2010, a decrease of 200 lines from the first quarter of 2010 and an increase of 8,000 lines when compared to the end of the second quarter of the prior year.

·  
GCI had 114,300 consumer and commercial cable modem customers at the end of the second quarter of 2010, an increase of 700 over the 113,600 cable modem customers at the end of the first quarter 2010. Average monthly revenue per cable modem totaled $46.69 for the second quarter of 2010 as compared to $42.19 in the prior year, an increase of 10.7 percent and is up 1.8 percent over $45.85 for the first quarter of 2010.
 
·  
GCI had 151,500 basic video subscribers at the end of the second quarter of 2010, a decrease of 200 from the second quarter of 2009 and an increase of 2,300 over the first quarter of 2010.

·  
GCI repurchased 171,300 shares of its Class A common shares at a cost of approximately $1.0 million or $5.86 per share during the second quarter of 2010. Depending on company performance, market conditions, liquidity, and subject to board oversight GCI may continue repurchasing its own shares.

Consumer
Consumer revenues increased 18.7 percent to $87.1 million as compared to $73.4 million in the second quarter of 2009 and increased 8.4 percent over $80.4 million in the first quarter of 2010. Revenue increases were strong for all consumer products and services. Consumer revenues were favorably impacted by a $4.1 million USF estimate change during the second quarter of 2010 which compares to an increase in USF revenues of $2.4 million in the second quarter of 2009 that were attributed to prior quarters.
 
Consumer voice revenues of $15.3 million increased 17.4 percent when compared to the second quarter a year ago and were up 10.1 percent over the first quarter of 2010. Consumer voice revenues were favorably impacted by $1.2 million of the total $4.1 million USF estimate change. Consumer local access lines in service at the end of second quarter of 2010 totaled 85,100, an increase of 3,900 lines over the
 
 
 
 
second quarter of 2009. Total access lines decreased by 700 lines when compared to the first quarter of 2010.

GCI serves 77,100 consumer access lines on its own facilities, an increase of 6,800 lines over the second quarter of 2009. More than 90 percent of consumer access lines are provisioned exclusively on GCI facilities.

Consumer video revenues of $29.4 million increased 8.2 percent over the prior year and increased 1.1 percent over the first quarter of 2010. The increases are due in part to increases in video subscribers purchasing higher tiered services and renting high definition/digital video recorder converters. Consumer video subscribers totaled 131,200 at the end of the second quarter of 2010, an increase of 1,500 subscribers over the second quarter of 2009 and a decrease of 200 subscribers from the first quarter of 2010.

Consumer data revenues of $14.6 million increased 20.1 percent over the prior year and 3.4 percent over the first quarter of 2010. The increase in consumer data revenues is due to an increase in cable modem customers and increasing average monthly revenue per cable modem. GCI added 8,600 consumer cable modem customers over the prior year and cable modem customer counts increased by 400 on a sequential basis.

Consumer wireless revenues increased to $27.9 million, an increase of 32.3 percent over the second quarter of 2009. The increase in wireless revenues is due in part to an increase in wireless subscribers and a $2.9 million USF estimate change.  Consumer has added 15,400 wireless customers over the end of the second quarter a year ago, an increase of 14.9 percent. Consumer wireless revenues increased $4.6 million sequentially, an increase of 19.6 percent, over the first quarter of 2010. Consumer added 1,500 wireless customers as compared to the end of the first quarter of 2010.

Network Access
Network access revenues decreased 12.9 percent to $27.1 million as compared to $31.1 million in the second quarter of 2009 and increased 3.5 percent over the first quarter of 2010.

Voice revenues, as expected, decreased 46.6 percent from the prior year and increased 7.8 percent from the first quarter of 2010. The decrease in voice revenues is primarily due to decreasing average revenue per minute and the transition of voice traffic to dedicated networks. The declining revenue per minute is largely due to renegotiating long-term contracts with our largest carriers during 2009.
 
Data revenues were down 1.6 percent compared to the second quarter 2009 and decreased 3.1 percent from the first quarter of 2010. The decrease in data revenues is primarily attributable to lower rates resulting from increased competition. The lower rates were partially offset by increases in data network capacity purchased by common carrier customers.

Wireless revenues, primarily related to roaming traffic, increased $2.5 million over the prior year and increased $0.9 million sequentially.

Commercial
Commercial revenues for the second quarter increased $5.2 million, an increase of 19.2 percent, to $32.1 million as compared to $26.9 million in the second quarter of 2009 and increased $4.3 million over $27.7 million in the first quarter of 2010. Commercial revenues were favorably impacted by a $0.6 million USF estimate change during the second quarter of 2010.

 
 
 
Voice revenues increased 9.7 percent over the prior year and 7.7 percent sequentially. The increase in voice revenues was due in part to $0.4 million of the total $0.6 million USF estimate change. Long distance minutes decreased 7.3 percent from the prior year and 0.4 percent from the first quarter of 2010. Commercial local access lines increased by 700 over the second quarter of 2009 and decreased 400 lines sequentially.

Commercial video revenues increased $0.4 million over the prior year and $0.3 million sequentially.
 
Commercial data services revenues include both transmission charges for data circuits and time and materials charges for GCI on-site support of customer operations. Data transport charges of $8.9 million were steady as compared to the second quarter of 2009 while time and material charges for support activities increased by $3.1 million to $10.0 million for the second quarter of 2010 as a result of increased activity primarily in the state’s oil sector. Commercial data service revenues were $18.8 million in the second quarter of 2010, up $3.4 million from the second quarter of 2009 and $3.3 million from the first quarter of 2010.

Commercial wireless revenues totaled $2.2 million for the second quarter, an increase of 36.3 percent over the prior year and an increase of 4.5 percent over the first quarter of 2010. Wireless revenues were also favorably impacted by a $0.2 million USF estimate change during the second quarter of 2010. GCI had 12,200 commercial wireless subscribers at the end of the second quarter, an increase of 1,600 subscribers over the first quarter of 2010.
 
Managed Broadband                                        
       Managed broadband revenues totaled $10.4 million in the second quarter of 2010, a decrease of 5.6 percent from $11.0 million in the second quarter of 2009. Revenue for the second quarter was down 14.1 percent from $12.1 million reported in the first quarter of 2010. The decrease in revenues is attributable to a $1.7 million reserve adjustment due to an adverse regulatory decision regarding services provided to a customer.

Regulated Operations
Regulated operations revenues totaled $5.6 million in the second quarter of 2010 as compared to $6.4 million in the second quarter of 2009. Regulated operations revenues for the second quarter of 2010 decreased $0.5 million from the first quarter of 2010. Regulated operations has 10,600 local access lines at the end of the second quarter of 2010, a decrease of 200 access lines from the first quarter of 2010.

Other Items
GCI’s second quarter 2010 capital expenditures totaled $27.1 million as compared to $29.7 million in the second quarter of 2009 and $16.8 million in the first quarter of 2010.

GCI will hold a conference call to discuss the quarter’s results on Thursday, August 5, 2010 beginning at 2 p.m. (Eastern). To access the briefing on August 5, call the conference operator between 1:50-2:00 p.m. (Eastern Time) at 888-829-8669 (International callers should dial 1-630-395-0367) and identify your call as “GCI.” In addition to the conference call, GCI will make available net conferencing. To access the call via net conference, log on to www.gci.com and follow the instructions. A replay of the call will be available for 72-hours by dialing 866-453-2036, access code 7461 (International callers should dial 203-369-1225.)

GCI is the largest telecommunications company in Alaska. GCI’s cable plant, which provides voice, video, and broadband data services, passes 90 percent of Alaska households. GCI operates Alaska’s most extensive terrestrial / subsea fiber optic network which connects not only Anchorage but also Fairbanks, and Juneau / Southeast Alaska to the lower 48 states with a diversely routed, protected fiber network. GCI’s satellite network provides communications services to small towns and communities throughout rural Alaska. GCI’s newly constructed statewide mobile wireless network seamlessly links 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 GCI can be found at www.gci.com.

The foregoing contains forward-looking statements regarding GCI’s expected results that are based on management’s expectations as well as on a number of assumptions concerning future events. Actual results might differ materially from those projected in the forward looking statements due to uncertainties and other factors, many of which are outside GCI’s control. Additional information concerning factors that could cause actual results to differ materially from those in the forward looking statements is contained in GCI’s cautionary statement sections of Form 10-K and 10-Q filed with the Securities and Exchange Commission.


#    #    #


 
 
 

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
  
CONSOLIDATED BALANCE SHEETS
  
(Unaudited)
  
             
             
(Amounts in thousands)
            
   
June 30,
    
December 31,
  
Assets
  
2010
    
2009
  
             
Current assets:
            
  Cash and cash equivalents
   $ 66,595       48,776  
 
                
  Receivables
     157,670       147,859  
  Less allowance for doubtful receivables
     11,144       7,060  
     Net receivables
     146,526       140,799  
 
                
  Deferred income taxes
     17,618       17,618  
  Prepaid expenses
     7,394       4,491  
  Inventories
     5,656       9,278  
  Other current assets
     5,592       5,872  
       Total current assets
     249,381       226,834  
 
                
Property and equipment in service, net of depreciation
     801,019       823,080  
Construction in progress
     33,046       26,161  
       Net property and equipment
     834,065       849,241  
 
                
Cable certificates
     191,635       191,565  
Goodwill
     73,452       73,452  
Wireless licenses
     25,967       25,967  
Other intangible assets, net of amortization
     17,670       19,561  
Deferred loan and senior notes costs, net of amortization
     14,528       13,168  
Other assets
     17,787       18,609  
    Total other assets
     341,039       342,322  
       Total assets
   $ 1,424,485       1,418,397  
                 
           
(Continued)
  

 
 
 

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
  
CONSOLIDATED BALANCE SHEETS
  
(Unaudited)
  
(Continued)
  
             
             
(Amounts in thousands)
            
   
June 30,
    
December 31,
  
Liabilities and Stockholders' Equity
  
2010
    
2009
  
             
Current liabilities:
            
  Current maturities of obligations under long-term debt and capital leases
   $ 10,302       9,892  
  Accounts payable
     32,811       30,697  
  Deferred revenue
     22,444       21,404  
  Accrued payroll and payroll related obligations
     19,149       21,874  
  Accrued interest
     13,428       14,821  
  Accrued liabilities
     12,964       15,037  
  Subscriber deposits
     1,358       1,549  
     Total current liabilities
     112,456       115,274  
 
                
Long-term debt, net
     773,292       771,247  
Obligations under capital leases, excluding current maturities
     86,752       89,279  
Obligation under capital lease due to related party
     1,880       1,876  
Deferred income taxes
     105,686       100,386  
Long-term deferred revenue
     51,060       52,342  
Other liabilities
     22,351       21,676  
       Total liabilities
     1,153,477       1,152,080  
 
                
                 
Commitments and contingencies
                
Stockholders’ equity:
                
  Common stock (no par):
                
   Class A. Authorized 100,000 shares; issued 51,978 and 51,899 shares
      at June 30, 2010 and December 31, 2009, respectively; outstanding
      51,485 and 51,627 shares at June 30, 2010 and December 31, 2009,
      respectively
     149,450       150,911  
                 
    Class B. Authorized 10,000 shares; issued and outstanding 3,185 and
      3,186 shares at June 30, 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 493 and 272 Class A common shares held in
      treasury at June 30, 2010 and December 31, 2009, respectively
     (2,328 )     (2,339 )
 
                
  Paid-in capital
     34,254       30,410  
  Retained earnings
     86,949       84,651  
       Total stockholders' equity
     271,008       266,317  
                 
       Total liabilities and stockholders' equity
   $ 1,424,485       1,418,397  

 
 
 

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)
  
2010
    
2009
    
2010
    
2009
  
                         
Revenues
   $ 162,326       148,796       314,745       297,485  
 
                                
Cost of goods sold (exclusive of depreciation and amortization shown
  separately below)
     51,754       47,348       100,661       95,205  
Selling, general and administrative expenses
     54,704       51,719       107,961       108,305  
Depreciation and amortization expense
     30,820       31,170       61,946       61,904  
   Operating income
     25,048       18,559       44,177       32,071  
 
                                
Other income (expense):
                                
  Interest expense (including amortization of deferred loan fees)
     (17,729 )     (13,273 )     (35,409 )     (25,920 )
  Interest income
     76       11       137       19  
    Other expense, net
     (17,653 )     (13,262 )     (35,272 )     (25,901 )
                                 
     Income before income tax expense
     7,395       5,297       8,905       6,170  
 
                                
Income tax expense
     5,465       2,733       5,301       3,252  
 
                                
     Net income
   $ 1,930       2,564       3,604       2,918  
 
                                
Basic net income per Class A common share
   $ 0.04       0.05       0.07       0.06  
                                 
Basic net income per Class B common share
   $ 0.04       0.05       0.07       0.06  
                                 
Diluted net income per Class A common share
   $ 0.04       0.05       0.07       0.05  
                                 
Diluted net income per Class B common share
   $ 0.04       0.05       0.07       0.05  
                                 
Common shares used to calculate Class A basic EPS
     51,489       49,300       51,534       49,286  
                                 
Common shares used to calculate Class A diluted EPS
     54,745       52,906       54,786       53,101  

 
 
 

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
  
(Unaudited)
  
(Amounts in thousands)
                                                                    
   
Second Quarter 2010
    
Second Quarter 2009
  
         
Network
          
Managed
    
Regulated
          
Network
          
Managed
    
Regulated
  
   
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
    
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
  
Revenues
                                                                        
  Voice
   $ 15,254       7,176       8,448       -       5,607       36,485     $ 12,988       13,444       7,701       -       6,368       40,501  
  Video
     29,352       -       2,639       -       -       31,991       27,132       -       2,221       -       -       29,353  
  Data
     14,608       15,823       18,831       10,387       -       59,649       12,166       16,073       15,409       10,998       -       54,646  
  Wireless
     27,935       4,113       2,153       -       -       34,201       21,113       1,603       1,580       -       -       24,296  
    Total
     87,149       27,112       32,071       10,387       5,607       162,326       73,399       31,120       26,911       10,998       6,368       148,796  
                                                                                                 
Cost of goods sold
     26,192       6,379       15,097       3,160       926       51,754       24,011       6,556       12,977       2,357       1,447       47,348  
                                                                                                 
    Contribution
     60,957       20,733       16,974       7,227       4,681       110,572       49,388       24,564       13,934       8,641       4,921       101,448  
                                                                                                 
Less SG&A
     30,445       7,897       9,179       4,219       2,964       54,704       27,740       9,370       8,600       3,411       2,598       51,719  
    EBITDA
     30,512       12,836       7,795       3,008       1,717       55,868       21,648       15,194       5,334       5,230       2,323       49,729  
                                                                                                 
Add share-based compensation
     825       390       273       155       -       1,643       607       452       246       122       -       1,427  
Add (less) non-cash
  contribution adjustment
     (82 )     (39 )     (24 )     (15 )     -       (160 )     37       25       12       6       -       80  
    Adjusted EBITDA
   $ 31,255       13,187       8,044       3,148       1,717       57,351     $ 22,292       15,671       5,592       5,358       2,323       51,236  
                                                                                                 
                                                                                                 
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
    
SUPPLEMENTAL SCHEDULES
    
(Unaudited)
  
(Amounts in thousands)
                                                                                          
   
Second Quarter 2010
      
First Quarter 2010
    
           
Network
            
Managed
    
Regulated
            
Network
            
Managed
    
Regulated
  
   
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
    
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
  
Revenues
                                                                                                
  Voice
   $ 15,254       7,176       8,448       -       5,607       36,485     $ 13,856       6,659       7,843       -       6,060       34,418  
  Video
     29,352       -       2,639       -       -       31,991       29,024       -       2,317       -       -       31,341  
  Data
     14,608       15,823       18,831       10,387       -       59,649       14,126       16,329       15,502       12,085       -       58,042  
  Wireless
     27,935       4,113       2,153       -       -       34,201       23,362       3,195       2,061       -       -       28,618  
    Total
     87,149       27,112       32,071       10,387       5,607       162,326       80,368       26,183       27,723       12,085       6,060       152,419  
                                                                                                 
Cost of goods sold
     26,192       6,379       15,097       3,160       926       51,754       25,633       6,528       12,371       3,218       1,157       48,907  
                                                                                                 
    Contribution
     60,957       20,733       16,974       7,227       4,681       110,572       54,735       19,655       15,352       8,867       4,903       103,512  
                                                                                                 
Less SG&A
     30,445       7,897       9,179       4,219       2,964       54,704       29,166       7,844       9,144       4,043       3,060       53,257  
    EBITDA
     30,512       12,836       7,795       3,008       1,717       55,868       25,569       11,811       6,208       4,824       1,843       50,255  
                                                                                                 
Add share-based compensation
     825       390       273       155       -       1,643       384       180       149       90       -       803  
Add non-cash contribution  
  adjustment
     (82 )     (39 )     (24 )     (15 )     -       (160 )     -       -       -       -       -       -  
    Adjusted EBITDA
   $ 31,255       13,187       8,044       3,148       1,717       57,351     $ 25,953       11,991       6,357       4,914       1,843       51,058  
                                                                                                 
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
    
SUPPLEMENTAL SCHEDULES
    
(Unaudited)
    
(Amounts in thousands)
                                                                                          
   
Six Months Ended June 30, 2010
      
Six Months Ended June 30, 2009
    
           
Network
            
Managed
    
Regulated
            
Network
            
Managed
    
Regulated
  
   
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
    
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
  
Revenues
                                                                                                
  Voice
   $ 29,110       13,835       16,291       -       11,667       70,903     $ 26,903       27,778       15,685       -       12,537       82,903  
  Video
     58,376       -       4,956       -       -       63,332       54,502       -       4,271       -       -       58,773  
  Data
     28,734       32,152       34,333       22,472       -       117,691       23,928       34,027       31,924       21,608       -       111,487  
  Wireless
     51,297       7,308       4,214       -       -       62,819       38,785       2,514       3,023       -       -       44,322  
    Total
     167,517       53,295       59,794       22,472       11,667       314,745       144,118       64,319       54,903       21,608       12,537       297,485  
                                                                                                 
Cost of goods sold
     51,825       12,907       27,468       6,378       2,083       100,661       47,414       13,240       26,332       5,046       3,173       95,205  
                                                                                                 
    Contribution
     115,692       40,388       32,326       16,094       9,584       214,084       96,704       51,079       28,571       16,562       9,364       202,280  
                                                                                                 
Less SG&A
     59,611       15,741       18,324       8,261       6,024       107,961       57,225       19,645       18,323       7,603       5,509       108,305  
    EBITDA
     56,081       24,647       14,002       7,833       3,560       106,123       39,479       31,434       10,248       8,959       3,855       93,975  
                                                                                                 
Add share-based compensation
     1,208       570       423       245       -       2,446       1,371       1,005       572       281       -       3,229  
Add non-cash contribution
  adjustment
     (82 )     (39 )     (24 )     (15 )     -       (160 )     220       151       73       36       -       480  
    Adjusted EBITDA
   $ 57,207       25,178       14,401       8,063       3,560       108,409     $ 41,070       32,590       10,893       9,276       3,855       97,684  

 
 
 

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
  
KEY PERFORMANCE INDICATORS
  
(Unaudited)
  
                                           
                     
June 30, 2010
    
June 30, 2010
  
                     
as compared to
    
as compared to
  
   
June 30,
    
June 30,
    
March 31,
    
June 30,
    
March 31,
    
June 30,
    
March 31,
  
   
2010
    
2009
    
2010
    
2009
    
2010
    
2009
    
2010
  
Consumer
                                          
Voice
                                          
Long-distance subscribers
     90,200       88,600       91,200       1,600       (1,000 )     1.8 %     -1.1 %
Total local access lines in service
     85,100       81,200       85,800       3,900       (700 )     4.8 %     -0.8 %
Local access lines in service on GCI facilities
     77,100       70,300       77,300       6,800       (200 )     9.7 %     -0.3 %
                                                         
Video
                                                        
Basic subscribers
     131,200       129,700       131,400       1,500       (200 )     1.2 %     -0.2 %
Digital programming tier subscribers
     80,600       76,200       81,400       4,400       (800 )     5.8 %     -1.0 %
HD/DVR converter boxes
     86,500       74,400       86,000       12,100       500       16.3 %     0.6 %
Homes passed
     234,700       230,400       232,900       4,300       1,800       1.9 %     0.8 %
                                                         
Data
                                                        
Cable modem subscribers
     103,500       94,900       103,100       8,600       400       9.1 %     0.4 %
                                                         
Wireless
                                                        
Wireless lines in service
     119,000       103,600       117,500       15,400       1,500       14.9 %     1.3 %
                                                         
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       9,600       9,400       (200 )     -       -2.1 %     0.0 %
Total local access lines in service
     48,000       47,300       48,400       700       (400 )     1.5 %     -0.8 %
Local access lines in service on GCI facilities
     20,600       18,400       20,400       2,200       200       12.0 %     1.0 %
                                                         
Video
                                                        
Hotels and mini-headend
  subscribers
     18,500       20,300       16,100       (1,800 )     2,400       -8.9 %     14.9 %
Basic subscribers
     1,800       1,700       1,700       100       100       5.9 %     5.9 %
   Total basic subscribers
     20,300       22,000       17,800       (1,700 )     2,500       -7.7 %     14.0 %
                                                         
Data
                                                        
Cable modem subscribers
     10,800       10,400       10,500       400       300       3.8 %     2.9 %
                                                         
Wireless
                                                        
Wireless lines in service
     12,200       8,900       10,600       3,300       1,600       37.1 %     15.1 %
                                                         
Regulated Operations
                                                        
Voice:
                                                        
Total local access lines in service
     10,600       11,600       10,800       (1,000 )     (200 )     -8.6 %     -1.9 %
                                                         
                           
June 30, 2010
  
June 30, 2010
   
Three Months Ended
            
as Compared to
    
as Compared to
  
   
June 30,
    
June 30,
    
March 31,
    
June 30,
    
March 31,
    
June 30,
    
March 31,
  
      2010       2009       2010       2009       2010       2009       2010  
Consumer
                                                        
Voice
                                                        
Long-distance minutes carried
  (in millions)
     26.7       28.3       28.3       (1.6 )     (1.6 )     -5.7 %     -5.7 %
                                                         
Video
                                                        
Average monthly gross revenue per
  subscriber
   $ 74.54     $ 69.59     $ 73.80     $ 4.95     $ 0.74       7.1 %     1.0 %
                                                         
Wireless
                                                        
Average monthly gross revenue per
  subscriber
   $ 57.96     $ 57.88     $ 59.99     $ 0.08     $ (2.03 )     0.1 %     -3.4 %
                                                         
Network Access Services
                                                        
Voice
                                                        
Long-distance minutes carried
  (in millions)
     201.3       215.6       193.6       (14.3 )     7.7       -6.6 %     4.0 %
                                                         
Commercial
                                                        
Voice:
                                                        
Long-distance minutes carried
  (in millions)
     29.4       31.8       29.6       (2.4 )     (0.2 )     -7.5 %     -0.7 %
                                                         
Total
                                                        
Long-distance minutes carried
  (in millions)
     257.4       275.7       251.5       (18.3 )     5.9       -6.6 %     2.3 %


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


   
Three Months Ended
  
   
June 30,
2010
    
June 30,
2009
    
March 31,
2010
  
Net income
   $ 1.9       2.6       1.7  
Income tax expense (benefit)
     5.5       2.7       (0.2 )
Income before income tax expense (benefit)
     7.4       5.3       1.5  
                         
Other (income) expense:
                        
Interest expense
  (including amortization of deferred loan fees)
     17.8       13.2       17.7  
Interest income
     (0.1 )     ---       ---  
Other expense, net
     17.7       13.2       17.7  
                         
Operating income
     25.1       18.5       19.2  
Depreciation and amortization expense
     30.8       31.2       31.1  
                         
EBITDA (Note 2)
     55.9       49.7       50.3  
Share-based compensation
     1.6       1.4       0.8  
Non-cash contribution adjustment
     (0.1 )     0.1       ---  
Adjusted EBITDA (Note 1)
   $ 57.4       51.2       51.1  


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


             
   
Six Months Ended
  
   
June 30,
2010
    
June 30,
2009
  
Net income
   $ 3.6       2.9  
Income tax expense
     5.3       3.3  
Income before income tax expense
     8.9       6.2  
                 
Other (income) expense:
                
Interest expense
  (including amortization of deferred loan fees)
     35.4       25.9  
Interest income
     (0.1 )     ---  
Other expense, net
     35.3       25.9  
                 
Operating income
     44.2       32.1  
Depreciation and amortization expense
     61.9       61.9  
                 
EBITDA (Note 2)
     106.1       94.0  
Share-based compensation
     2.4       3.2  
Non-cash contribution adjustment
     (0.1 )     0.5  
Adjusted EBITDA (Note 1)
   $ 108.4       97.7  

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




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

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