Exhibit 99.1
 
 


March 9, 2011

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 2010 FINANCIAL RESULTS

·  
Consolidated revenue of $651.3 million
·  
Adjusted EBITDA of $221.5 million
·  
Net income of $9.0 million or $0.17 per diluted share

ANCHORAGE, AK – General Communication, Inc. (“GCI”) (NASDAQ:GNCMA) today reported its 2010 results with revenues increasing 9.3 percent to $651.3 million over revenues of $595.8 million in 2009. Adjusted EBITDA increased $28.6 million or 14.8 percent over 2009 EBITDA of $192.9 million. EBITDA margin improved to 34.0 percent as compared to 32.4 percent for the prior year. Revenues and adjusted EBITDA were record high results for GCI.

Net income for 2010 totaled $9.0 million or earnings per diluted share of $0.17 and compares to net income of $3.5 million, or earnings per diluted share of $0.06 for 2009.

“For 2010 we recorded ‘yet another best year ever’ with revenues and EBITDA at all time highs of $651 million and $221 million respectively.” said GCI president Ron Duncan. “The increase of more than $28 million in EBITDA demonstrates the solid return generated by GCI’s investments.

“Our performance in the marketplace is exemplary, led by exceptional growth in wireless and continued strength across all of our other consumer businesses.

“During the year we purchased more than 8 million shares of our stock, returning more than $80 million in cash to shareholders. It is our expectation that we will continue to use available cash to repurchase shares subject to market conditions.”

For the fourth quarter of 2010, revenues totaled $165.0 million as compared to $147.5 million in the fourth quarter of 2009, an increase of 11.9 percent. Revenues were down $6.5 million sequentially when compared to third quarter 2010 revenues of $171.5 million. Approximately $3 million of the reduction was due to changes in estimates for receivables between the two quarters as a result of changes in certain USF payment rates. The balance of the reduction was due to normal seasonality.

Fourth quarter 2010 adjusted EBITDA totaled $50.3 million and compares to $45.0 million, an increase of 12.0 percent over the fourth quarter of 2009. On a sequential basis, EBITDA decreased $12.4 million or 19.8 percent from $62.7 million in the third quarter of 2010.

Sequential comparisons between the third and fourth quarter EBITDA are distorted by the effects of the $3 million in revenue adjustments referred to above plus a favorable $3.8 million adjustment to cost of goods sold recorded in the third quarter as a result of the resolution of several disputed billing issues. Consequently, more than half of the decrease between the two quarters is a result of adjustments and changes in estimates. The remaining amount is the result of normal seasonal effects and increased selling, general and administrative expenses (SG&A) for the fourth quarter of 2010.

 
 
 
 
GCI anticipates revenues of $685 million to $700 million and adjusted EBITDA of $233 million to $238 million for the year 2011.

GCI further anticipates it will incur capital expenditures of approximately $100 million for 2011, not including expenditures related to the TERRA-Southwest (TSW) project. GCI hopes to complete construction of the TSW project by the end of 2011. This would allow the project to be placed into service more than a year ahead of schedule. Residents of southwest Alaska would see the benefits of full terrestrial connectivity well ahead of schedule and GCI’s anticipated EBITDA from the project would be accelerated. The TSW project is expected to cost $88 million, of which approximately $9 million was expended in 2010. The TSW project will be funded by a $44 million grant and $44 million long term loan as previously announced by GCI.
 
Highlights
·  
GCI repurchased 8,011,750 shares of its Class A common stock for the calendar year ended 2010 at an average price per share of $10.08. GCI is authorized to repurchase more than $100 million of its shares depending on company performance, market conditions, and liquidity, and is subject to board oversight. At the end of 2010 GCI had approximately 47.1 million shares outstanding.
 
 
·  
GCI is the second largest wireless provider in Alaska with 138,700 wireless subscribers at the end of 2010, an increase of more than ten percent over the end of 2009.

·  
Consumer revenues for 2010 totaled $342.9 million, an increase of 16.3 percent over 2009. Revenue increases were strong across all product lines during 2010. Fourth quarter 2010 revenues of $86.7 million increased 14.4 percent over the prior year.

·  
GCI had 144,800 access lines at the end of 2010, representing an estimated 36 percent share of the total access line market in Alaska. Total access lines were up 1,200 in GCI’s consumer and commercial group offset by a decrease of 1,100 lines in its regulated operations. While net GCI access lines were relatively flat year to year, GCI’s market share increased more than 100 basis points due to a decline in the total size of the market.

·  
GCI’s facilities-based access lines totaled 109,900, representing 76 percent of its total access lines at the end of 2010, an increase of 400 lines over the third quarter of 2010 and an increase of 2,600 lines when compared to the end of the fourth quarter of the prior year.

·  
GCI had 116,400 consumer and commercial cable modem customers at the end of 2010, an increase of 1,200 over the 115,200 cable modem customers at the end of the third quarter 2010. Average monthly revenue per cable modem for the fourth quarter of 2010 was $53.47, an increase of 17.2 percent over the $45.63 figure posted in the fourth quarter of 2009 and an increase of 5.7 percent over the $50.61 figure posted for the third quarter of 2010.

Consumer
Consumer revenues increased 16.3 percent to $342.9 million as compared to $294.9 million in 2009. Growth was experienced across all product lines. Fourth quarter 2010 revenues of $86.7 million increased 14.4 percent over the prior year and decreased 2.3 percent sequentially. The sequential decrease in revenues was primarily due to the previously referenced USF adjustment for voice and wireless products.

Consumer voice revenues of $57.3 million increased 8.9 percent when compared to 2009. The increase in consumer voice revenues in 2010 when compared to the prior year was primarily due to customer growth and associated USF support for customer lines. Consumer local access lines in service at the end of 2010 totaled 84,800, an increase of 600 lines over 2009.

Fourth quarter 2010 voice revenues of $13.6 million increased 2.6 percent over the fourth quarter of 2009 and decreased 6.8 percent sequentially. The sequential decrease in revenues is primarily due to the USF adjustment. Total access lines increased by 100 lines sequentially.

GCI serves 77,400 consumer access lines on its own facilities, an increase of 2,200 lines over 2009 and 300 lines over the third quarter of 2010. More than 91 percent of consumer access lines are provisioned exclusively on GCI facilities.

Consumer video revenues of $118.5 million increased 6.7 percent over the prior year. Fourth quarter 2010 video revenues of $30.4 million increased 5.2 percent over the prior year and 2.2 percent sequentially. The increases are due in part to increases in video subscribers purchasing higher tiered services and renting high definition/digital video recorder converters. Consumer basic video subscribers totaled 130,000 at the end of 2010, a decrease of 500 subscribers from 2009 and from the third quarter of 2010.

Consumer data revenues of $61.4 million increased 21.9 percent over the prior year. Fourth quarter 2010 data revenues of $16.8 million increased 23.1 percent over the prior year and 6.6 percent sequentially. The increase in consumer data revenues is due to an increase in cable modem customers and increasing average monthly usage per cable modem. GCI added 5,500 consumer cable modem customers over the prior year and cable modem customer counts increased by 1,300 on a sequential basis.

Consumer wireless revenues increased to $105.7 million, an increase of 30.6 percent over 2009 driven by an increase in wireless subscribers. Since the end of the fourth quarter a year ago, Consumer has added 9,800 wireless customers, an increase of 8.5 percent.

Consumer wireless revenues increased 29.4 percent over the fourth quarter of 2009 and decreased 9.6 percent sequentially. The increase in quarterly revenue over the prior year is primarily due to strong subscriber growth and the sequential decrease in wireless revenues is primarily due to the change in USF payment rates. Consumer added 2,000 wireless customers during the fourth quarter of 2010.

Network Access
Network access revenues decreased 12.2 percent to $107.2 million as compared to $122.1 million in 2009. Fourth quarter revenues of $25.7 million decreased $1.8 million or 6.4 percent from the prior year and $2.5 million or 8.8 percent sequentially. The revenue decreases for the year were expected and primarily due to rate compression. The sequential decrease in quarterly revenues is primarily due to seasonality.

Voice revenues, as expected, decreased 41.7 percent from the prior year. Fourth quarter 2010 voice revenues of $6.6 million decreased 33.5 percent from the fourth quarter of the prior year and 24.0 percent sequentially. The decrease in voice revenues is primarily due to decreasing average revenue per minute and further transition of voice traffic to dedicated networks. The declining revenue per minute is largely due to the renegotiation of long-term contracts with GCI’s largest carrier customers during 2009. The sequential decrease in quarterly revenues is due in part to seasonality.
 
 
 
 
Data revenues were down 3.7 percent compared to 2009. Fourth quarter 2010 data revenue of $15.1 million increased $0.2 million or 1.2 percent over the fourth quarter of the prior year and increased $0.9 million or 6.5 percent sequentially. The increase in data revenues is primarily due to increases in data network capacity purchased by common carrier customers.

Wireless revenues, primarily related to roaming traffic, increased $8.3 million over the prior year. On a quarterly basis, wireless roaming revenues continue to increase as compared to the prior year. The decrease in quarterly sequential revenues is primarily due to seasonality.

Commercial
Commercial revenues for 2010 increased $18.3 million, an increase of 16.6 percent, to $128.5 million as compared to $110.1 million in 2009. The increase in revenues for the year is primarily due to increases in special project work.

Fourth quarter 2010 revenues of $33.2 million increased 21.0 percent over the fourth quarter of the prior year and decreased 6.3 percent on a sequential basis. Special project work revenues drove the increase in revenues over the prior year but were lower on a sequential basis as projects were completed during the fourth quarter.

Voice revenues for 2010 increased 2.9 percent over the prior year. Long distance minutes decreased 5.8 percent from the prior year. Voice revenues for the fourth quarter were steady as compared to the prior year and decreased 7.7 percent from the third quarter of 2010. The sequential decrease in revenues is primarily due to seasonality. Local access lines at the end of 2010 increased by 600 lines over 2009.

Commercial video revenues increased $2.0 million over the prior year primarily due to increased advertising revenue from political campaigns in 2010.
 
Commercial data service 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 $35.9 million increased by $1.6 million as compared to 2009 and time and material charges for support activities increased by $11.8 million to $40.9 million for 2010 as a result of increased activity primarily in the oil sector. Commercial data service revenues were $76.8 million in 2010, up $13.4 million over 2009.

Commercial wireless revenues totaled $8.7 million for 2010, an increase of 29.5 percent over the prior year. GCI had 13,800 Commercial wireless subscribers at the end of 2010, an increase of 3,500 subscribers over the prior year.
 
Managed Broadband
Managed broadband revenues totaled $50.0 million in 2010, an increase of 11.3 percent over $44.9 million in 2009. Fourth quarter 2010 revenue of $13.9 million increased 20.7 percent over the fourth quarter of the prior year and 2.9 percent sequentially.

Regulated Operations
Regulated operations revenues totaled $22.7 million in 2010 as compared to $23.8 million in 2009. Regulated operations revenues for the fourth quarter of 2010 were steady when compared to the fourth quarter of 2009 and the third quarter of 2010. Regulated operations had 10,000 local access lines at the end of the fourth quarter of 2010, a decrease of 200 access lines from the third quarter of 2010.

Other Items
SG&A expenses for 2010 totaled $228.8 million, an increase of 7.6 percent as compared to $212.7 million for 2009. The increase is due in part to increases in health care costs, labor and related benefits, and costs related to the aircraft accident. As a percentage of revenues, SG&A expenses decreased to 35 percent in 2010 as compared to 36 percent in 2009.

 
 
 
GCI’s 2010 capital expenditures totaled $100.6 million as compared to $119.3 million in 2009.

GCI will hold a conference call to discuss the quarter’s results on Thursday, March 10, 2011 beginning at 2 p.m. (Eastern). To access the briefing on March 10, call the conference operator between 1:50-2:00 p.m. (Eastern Time) at 888-566-6186 (International callers should dial 1-312-470-7480) 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 800-234-2079, access code 7461 (International callers should dial 402-220-9687.)

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)
            
   
December 31,
    
December 31,
  
Assets
  
2010
    
2009
  
             
Current assets:
            
  Cash and cash equivalents
   $ 33,070       48,776  
 
                
  Receivables
     132,856       147,859  
  Less allowance for doubtful receivables
     9,189       7,060  
     Net receivables
     123,667       140,799  
 
                
  Deferred income taxes
     10,145       17,618  
  Prepaid expenses
     5,950       4,491  
  Inventories
     5,804       9,278  
  Other current assets
     3,940       5,872  
       Total current assets
     182,576       226,834  
 
                
Property and equipment in service, net of depreciation
     798,278       823,080  
Construction in progress
     31,144       26,161  
       Net property and equipment
     829,422       849,241  
 
                
Cable certificates
     191,635       191,565  
Goodwill
     73,932       73,452  
Wireless licenses
     25,967       25,967  
Other intangible assets, net of amortization
     17,717       19,561  
Deferred loan and senior notes costs, net of amortization
     13,661       13,168  
Other assets
     16,850       18,609  
    Total other assets
     339,762       342,322  
       Total assets
   $ 1,351,760       1,418,397  
                 
           
(Continued)
  


 
 
 

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
  
CONSOLIDATED BALANCE SHEETS
  
(Unaudited)
  
(Continued)
  
             
             
(Amounts in thousands)
            
   
December 31,
    
December 31,
  
Liabilities and Stockholders' Equity
  
2010
    
2009
  
             
Current liabilities:
            
  Current maturities of obligations under long-term debt and capital leases
   $ 7,652       9,892  
  Accounts payable
     35,589       30,697  
  Deferred revenue
     17,296       21,404  
  Accrued payroll and payroll related obligations
     22,132       21,874  
  Accrued interest
     13,456       14,821  
  Accrued liabilities
     12,557       15,037  
  Subscriber deposits
     1,271       1,549  
     Total current liabilities
     109,953       115,274  
 
                
Long-term debt, net
     779,201       771,247  
Obligations under capital leases, excluding current maturities
     84,144       89,279  
Obligation under capital lease due to related party, excluding current maturity
     1,885       1,876  
Deferred income taxes
     102,401       100,386  
Long-term deferred revenue
     49,175       52,342  
Other liabilities
     24,495       21,676  
       Total liabilities
     1,151,254       1,152,080  
 
                
                 
Commitments and contingencies
                
Stockholders’ equity:
                
  Common stock (no par):
                
   Class A. Authorized 100,000 shares; issued 44,213 and 51,899 shares at
     December 31, 2010 and 2009, respectively; outstanding 43,958
     and 51,627 shares at December 31, 2010 and 2009, respectively
     69,396       150,911  
                 
    Class B. Authorized 10,000 shares; issued and outstanding 3,178 and
     3,186 shares at December 31, 2010 and 2009, respectively; convertible
     on a share-per-share basis into Class A common stock
     2,677       2,684  
                 
    Less cost of 255 and 272 Class A and Class B common shares held in
      treasury at December 31, 2010 and 2009, respectively
     (2,249 )     (2,339 )
 
                
  Paid-in capital
     37,075       30,410  
  Retained earnings
     93,607       84,651  
       Total stockholders' equity
     200,506       266,317  
                 
       Total liabilities and stockholders' equity
   $ 1,351,760       1,418,397  


 
 
 

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
  
CONSOLIDATED STATEMENTS OF OPERATIONS
  
YEARS ENDED DECEMBER 31, 2010, 2009 AND 2008
  
                   
   
(Unaudited)
  
(Amounts in thousands, except per share amounts)
  
2010
    
2009
    
2008
  
                   
Revenues
   $ 651,250     $ 595,811       575,442  
 
                        
Cost of goods sold (exclusive of depreciation and amortization shown
  separately below)
     207,817       193,676       203,058  
Selling, general and administrative expenses
     228,808       212,671       210,306  
Depreciation and amortization expense
     126,114       123,362       114,369  
   Operating income
     88,511       66,102       47,709  
 
                        
Other income (expense):
                        
  Interest expense (including amortization and write-off of deferred loan fees)
     (70,329 )     (58,761 )     (50,363 )
  Interest and investment income
     261       111       576  
  Other
     -       -       (217 )
   Other expense, net
     (70,068 )     (58,650 )     (50,004 )
                         
   Income (loss) before income tax expense
     18,443       7,452       (2,295 )
 
                        
Income tax expense
     9,488       3,936       1,077  
 
                        
   Net income (loss)
     8,955       3,516       (3,372 )
                         
Net income attributable to the non-controlling interest
     -       -       1,503  
                         
   Net income (loss) attributable to General Communication, Inc.
   $ 8,955     $ 3,516       (1,869 )
 
                        
Basic net income (loss) attributable to General Communication, Inc.
  common stockholders per Class A common share
   $ 0.17     $ 0.07       (0.04 )
Basic net income (loss) attributable to General Communication, Inc.
  common stockholders per Class B common share
   $ 0.17     $ 0.07       (0.04 )
Diluted net income (loss) attributable to General Communication, Inc.
  common stockholders per Class A common share
   $ 0.17     $ 0.06       (0.04 )
Diluted net income (loss) attributable to General Communication, Inc.
  common stockholders per Class B common share
   $ 0.17     $ 0.06       (0.04 )
Common shares used to calculate Class A basic EPS
     50,076       50,159       49,080  
                         
Common shares used to calculate Class A diluted EPS
     53,426       53,848       52,321  


 
 
 

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
  
SUPPLEMENTAL SCHEDULES
  
(Unaudited)
  
(Amounts in thousands)
                                                                    
   
Fourth 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
   $ 13,606       6,561       7,404       -       5,443       33,014     $ 13,264       9,862       7,457       -       5,230       35,813  
  Video
     30,379       -       3,269       -       -       33,648       28,872       -       2,584       -       -       31,456  
  Data
     16,833       15,134       20,279       13,942       -       66,188       13,673       14,959       15,658       11,552       -       55,842  
  Wireless
     25,850       4,033       2,263       -       -       32,146       19,977       2,669       1,753       -       -       24,399  
    Total
     86,668       25,728       33,215       13,942       5,443       164,996       75,786       27,490       27,452       11,552       5,230       147,510  
                                                                                                 
Cost of goods sold
     27,282       6,576       15,686       4,089       1,037       54,670       24,794       6,477       12,603       3,196       1,234       48,304  
                                                                                                 
    Contribution
     59,386       19,152       17,529       9,853       4,406       110,326       50,992       21,013       14,849       8,356       3,996       99,206  
                                                                                                 
Less SG&A
     34,271       9,649       10,559       4,683       3,153       62,315       29,111       10,447       8,950       3,691       3,122       55,321  
    EBITDA
     25,115       9,503       6,970       5,170       1,253       48,011       21,881       10,566       5,899       4,665       874       43,885  
                                                                                                 
Add share-based
  compensation
     1,032       479       332       191       3       2,037       328       274       203       102       -       907  
Add accretion
     149       71       43       26       -       289       -       -       -       -       -       -  
Add non-cash contribution
  adjustment
     -       -       -       -       -       -       74       49       25       12       -       160  
    Adjusted EBITDA
   $ 26,296       10,053       7,345       5,387       1,256       50,337     $ 22,283       10,889       6,127       4,779       874       44,952  


 
 
 

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
  
SUPPLEMENTAL SCHEDULES
  
(Unaudited)
  
(Amounts in thousands)
                                                                    
   
Fourth Quarter 2010
    
Third Quarter 2010
  
         
Network
          
Managed
    
Regulated
          
Network
          
Managed
    
Regulated
  
   
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
    
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
  
Revenues
                                                                        
  Voice
   $ 13,606       6,561       7,404       -       5,443       33,014     $ 14,601       8,636       8,025       -       5,595       36,857  
  Video
     30,379       -       3,269       -       -       33,648       29,720       -       2,953       -       -       32,673  
  Data
     16,833       15,134       20,279       13,942       -       66,188       15,797       14,208       22,211       13,548       -       65,764  
  Wireless
     25,850       4,033       2,263       -       -       32,146       28,595       5,360       2,260       -       -       36,215  
    Total
     86,668       25,728       33,215       13,942       5,443       164,996       88,713       28,204       35,449       13,548       5,595       171,509  
                                                                                                 
Cost of goods sold
     27,282       6,576       15,686       4,089       1,037       54,670       25,374       5,547       16,731       3,545       1,289       52,486  
                                                                                                 
    Contribution
     59,386       19,152       17,529       9,853       4,406       110,326       63,339       22,657       18,718       10,003       4,306       119,023  
                                                                                                 
Less SG&A
     34,271       9,649       10,559       4,683       3,153       62,315       33,248       8,178       9,955       4,392       2,759       58,532  
    EBITDA
     25,115       9,503       6,970       5,170       1,253       48,011       30,091       14,479       8,763       5,611       1,547       60,491  
                                                                                                 
Add share-based
  compensation
     1,032       479       332       191       3       2,037       1,121       549       362       215       3       2,250  
Add accretion
     149       71       43       26       -       289       -       -       -       -       -       -  
Add non-cash
  contribution adjustment
     -       -       -       -       -       -       -       -       -       -       -       -  
    Adjusted EBITDA
   $ 26,296       10,053       7,345       5,387       1,256       50,337     $ 31,212       15,028       9,125       5,826       1,550       62,741  


 
 
 

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
  
SUPPLEMENTAL SCHEDULES
  
(Unaudited)
  
(Amounts in thousands)
                                                                    
   
Twelve Months Ended December 31, 2010
    
Twelve Months Ended December 31, 2009
  
         
Network
          
Managed
    
Regulated
          
Network
          
Managed
    
Regulated
  
   
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
    
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
  
Revenues
                                                                        
  Voice
   $ 57,317       29,032       31,720       -       22,705       140,774       52,654       49,837       30,830       -       23,804       157,125  
  Video
     118,475       -       11,178       -       -       129,653       110,986       -       9,175       -       -       120,161  
  Data
     61,364       61,494       76,823       49,962       -       249,643       50,327       63,862       63,383       44,875       -       222,447  
  Wireless
     105,742       16,701       8,737       -       -       131,180       80,958       8,373       6,747       -       -       96,078  
    Total
     342,898       107,227       128,458       49,962       22,705       651,250       294,925       122,072       110,135       44,875       23,804       595,811  
                                                                                                 
Cost of goods sold
     104,481       25,030       59,885       14,012       4,409       207,817       96,894       27,253       52,245       11,135       6,149       193,676  
                                                                                                 
    Contribution
     238,417       82,197       68,573       35,950       18,296       443,433       198,031       94,819       57,890       33,740       17,655       402,135  
                                                                                                 
Less SG&A
     127,130       33,566       38,838       17,338       11,936       228,808       112,883       38,348       35,363       14,450       11,627       212,671  
    EBITDA
     111,287       48,631       29,735       18,612       6,360       214,625       85,148       56,471       22,527       19,290       6,028       189,464  
                                                                                                 
Add share-based
  compensation
     3,361       1,598       1,117       651       6       6,733       1,145       891       549       219       -       2,804  
Add accretion
     149       71       43       26       -       289       -       -       -       -       -       -  
Add non-cash
  contribution adjustment
     (81 )     (41 )     (24 )     (14 )     -       (160 )     294       201       98       47       -       640  
    Adjusted EBITDA
   $ 114,716       50,259       30,871       19,275       6,366       221,487     $ 86,587       57,563       23,174       19,556       6,028       192,908  


 
 
 

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
  
KEY PERFORMANCE INDICATORS
  
(Unaudited)
  
                                           
                     
December 31, 2010
    
December 31, 2010
  
                     
as compared to
    
as compared to
  
   
December 31,
    
December 31,
    
September 30,
  
December 31,
    
September 30,
  
December 31,
    
September 30,
  
   
2010
    
2009
    
2010
    
2009
    
2010
    
2009
    
2010
  
Consumer
                                          
Voice
                                          
Long-distance subscribers
     88,200       90,500       89,000       (2,300 )     (800 )     -2.5 %     -0.9 %
Total local access lines in service
     84,800       84,200       84,700       600       100       0.7 %     0.1 %
Local access lines in service on GCI facilities
     77,400       75,200       77,100       2,200       300       2.9 %     0.4 %
                                                         
Video
                                                        
Basic subscribers
     130,000       130,500       130,500       (500 )     (500 )     -0.4 %     -0.4 %
Digital programming tier subscribers
     81,800       79,600       80,600       2,200       1,200       2.8 %     1.5 %
HD/DVR converter boxes
     88,100       81,500       87,500       6,600       600       8.1 %     0.7 %
Homes passed
     238,500       232,400       234,900       6,100       3,600       2.6 %     1.5 %
                                                         
Data
                                                        
Cable modem subscribers
     105,700       100,200       104,400       5,500       1,300       5.5 %     1.2 %
                                                         
Wireless
                                                        
Wireless lines in service
     124,900       115,100       122,900       9,800       2,000       8.5 %     1.6 %
                                                         
Network Access Services
                                                        
Data:
                                                        
Total ISP access lines in service
     1,700       1,700       1,700       -       -       0.0 %     0.0 %
Total ISP access lines in service on GCI facilities
     1,300       1,400       1,300       (100 )     -       -7.1 %     0.0 %
                                                         
Commercial
                                                        
Voice:
                                                        
Long-distance subscribers
     9,100       9,500       9,300       (400 )     (200 )     -4.2 %     -2.2 %
Total local access lines in service
     48,300       47,700       48,100       600       200       1.3 %     0.4 %
Local access lines in service on GCI facilities
     21,200       19,600       20,900       1,600       300       8.2 %     1.4 %
                                                         
Video
                                                        
Hotels and mini-headend
  subscribers
     15,300       15,400       16,000       (100 )     (700 )     -0.6 %     -4.4 %
Basic subscribers
     1,800       1,700       1,800       100       -       5.9 %     0.0 %
   Total basic subscribers
     17,100       17,100       17,800       -       (700 )     0.0 %     -3.9 %
                                                         
Data
                                                        
Cable modem subscribers
     10,700       10,500       10,800       200       (100 )     1.9 %     -0.9 %
                                                         
Wireless
                                                        
Wireless lines in service
     13,800       10,300       13,600       3,500       200       34.0 %     1.5 %
                                                         
Regulated Operations
                                                        
Voice:
                                                        
Total local access lines in service
     10,000       11,100       10,200       (1,100 )     (200 )     -9.9 %     -2.0 %
                                                         
                           
December 31, 2010
  
December 31, 2010
   
Three Months Ended
  
as Compared to
  
as Compared to
   
December 31,
    
December 31,
    
September 30,
  
December 31,
    
September 30,
  
December 31,
    
September 30,
  
      2010       2009       2010       2009       2010       2009       2010  
Consumer
                                                        
Voice
                                                        
Long-distance minutes carried
  (in millions)
     26.2       28.8       25.6       (2.6 )     0.6       -9.0 %     2.3 %
                                                         
Video
                                                        
Average monthly gross revenue per subscriber
   $ 77.77     $ 73.57     $ 75.85     $ 4.20     $ 1.92       5.7 %     2.5 %
                                                         
Wireless
                                                        
Average monthly gross revenue per subscriber
   $ 64.88     $ 54.48     $ 74.61     $ 10.40     $ (9.73 )     19.1 %     -13.0 %
                                                         
Network Access Services
                                                        
Voice
                                                        
Long-distance minutes carried
  (in millions)
     185.0       199.3       205.4       (14.3 )     (20.4 )     -7.2 %     -9.9 %
                                                         
Commercial
                                                        
Voice:
                                                        
Long-distance minutes carried
  (in millions)
     27.3       28.6       29.8       (1.3 )     (2.5 )     -4.5 %     -8.4 %
                                                         
Total
                                                        
Long-distance minutes carried
  (in millions)
     238.5       256.7       260.8       (18.2 )     (22.3 )     -7.1 %     -8.6 %
                                                         
                           
December 31, 2010
            
December 31, 2010
          
   
Twelve Months Ended
            
as Compared to
            
as Compared to
          
   
December 31,
    
        December 31,
    
December 31,
            
December 31,
          
      2010       2009               2009               2009          
Consumer
                                                        
Voice
                                                        
Long-distance minutes carried
  (in millions)
     106.9       114.7               (7.8 )             -6.8 %        
                                                         
Network Access Services
                                                        
Voice
                                                        
Long-distance minutes carried
  (in millions)
     785.4       840.0               (54.6 )             -6.5 %        
                                                         
Commercial
                                                        
Voice:
                                                        
Long-distance minutes carried
  (in millions)
     116.0       123.2               (7.2 )             -5.8 %        
                                                         
Total
                                                        
Long-distance minutes carried
  (in millions)
     1,008.3       1,077.9               (69.6 )             -6.5 %        


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


   
Three Months Ended
  
   
December 31,
2010
    
December 30,
2009
    
September 30,
2010
  
Net income (loss)
   $ (2.2 )     (3.7 )     7.6  
Income tax expense (benefit)
     (0.8 )     (2.6 )     4.9  
Income (loss) before income tax expense (benefit)
     (3.0 )     (6.3 )     12.5  
                         
Other (income) expense:
                        
Interest expense
  (including amortization and write-off of deferred loan fees)
     17.1       19.7       17.8  
Interest income
     ---       (0.1 )     (0.1 )
Other expense, net
     17.1       19.6       17.7  
                         
Operating income
     14.1       13.3       30.2  
Depreciation and amortization expense
     33.9       30.6       30.3  
                         
EBITDA (Note 2)
     48.0       43.9       60.5  
Share-based compensation
     2.0       0.9       2.2  
Accretion
     0.3       ---       ---  
Non-cash contribution adjustment
     ---       0.2       ---  
Adjusted EBITDA (Note 1)
   $ 50.3       45.0       62.7  


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


             
   
Year Ended
  
   
December 31,
2010
    
December 31,
2009
  
Net income
   $ 9.0       3.5  
Income tax expense
     9.4       3.9  
Income before income tax expense
     18.4       7.4  
                 
Other (income) expense:
                
Interest expense
  (including amortization and write-off of deferred loan fees)
     70.3       58.8  
Interest income
     (0.2 )     (0.1 )
Other expense, net
     70.1       58.7  
                 
Operating income
     88.5       66.1  
Depreciation and amortization expense
     126.1       123.4  
                 
EBITDA (Note 2)
     214.6       189.5  
Share-based compensation
     6.7       2.8  
Accretion
     0.3       ---  
Non-cash contribution adjustment
     (0.1 )     0.6  
Adjusted EBITDA (Note 1)
   $ 221.5       192.9  

 
 
 
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, accretion 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.