exhibit99-1.htm

Exhibit 99.1

August 3, 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 SECOND QUARTER 2011 FINANCIAL RESULTS

·	Consolidated revenue of $168.1 million

·	Adjusted EBITDA of $54.9 million

·	Net loss of $2.0 million or $(0.04) per diluted share

ANCHORAGE, AK – General Communication, Inc. (“GCI”) (NASDAQ:GNCMA) today reported its second quarter 2011 results with revenues increasing to $168.1 million over revenues of $162.3 million in the second quarter of 2010. Adjusted EBITDA decreased $2.4 million or 4.2 percent from the second quarter of 2010 EBITDA of $57.4 million. Adjusted EBITDA for the second quarter of 2011 increased $0.6 million after excluding the benefit of $3 million in net adjustments to EBITDA reflected in the second quarter of 2010. The 2010 adjustments were related to a change in USF estimates and a contract reserve adjustment for a large customer.

GCI’s second quarter 2011 net loss totaled $2.0 million or loss per diluted share of $(0.04) and compares to net income of $1.9 million, or earnings per diluted share of $0.04 for the same period of 2010. GCI‘s second quarter net loss is primarily related to a $9.1 million loss on debt extinguishment related to the refinancing of the company’s $320 million Senior Notes due 2014 that were replaced with a new issue due 2021.

Second quarter of 2011 revenues increased 2.0 percent or $3.3 million over first quarter of 2011 revenues. Adjusted EBITDA increased 3.0 percent or $1.6 million over the first quarter of 2011 Adjusted EBITDA.

“GCI’s results for the second quarter were flat as a result of soft consumer metrics.” said GCI president Ron Duncan. “Consumer growth was adversely affected by a large troop deployment from Fort Wainwright in Fairbanks, a billing clean-up and delays in the implementation of new systems and products. Most of those issues are behind us now and we expect to return to more normal consumer growth patterns in the second half of the year. Presently we expect results for the full year to be within the range of our guidance.

“We are on track with our important TERRA project and anticipate that it will be completed this year. We also continued to make strong progress on our stock repurchase program by retiring more than $14 million worth of stock in the second quarter.

GCI previously provided guidance on revenues of $685 million to $700 million and adjusted EBITDA of $233 million to $238 million for the year 2011.

Highlights

GCI repurchased 1,233,067 shares of its Class A common stock in the second quarter of 2011 at an average price per share of $11.44. GCI is authorized to repurchase $114.4 million of its common equity depending on company performance, market conditions, and liquidity, and subject to board oversight. At the end of the second quarter of 2011 GCI had approximately 45.7 million shares outstanding.

·	GCI is the second largest wireless provider in Alaska with 141,000 wireless subscribers at the end of the quarter, an increase of 800 subscribers over the end of the first quarter of 2011.

Consumer revenues for the second quarter of 2011 totaled $88.6 million, an increase of 1.6 percent over the second quarter of 2010. Consumer revenues for the second quarter of 2010 benefited from a $4.1 million USF estimate change. Excluding the estimate change for the prior year, consumer revenues increased $5.5 million or 6.6 percent over 2010. Revenue increases were in the video, data and wireless product lines during the second quarter of 2011.

Commercial revenues increased $2.1 million to $34.2 million as compared to $32.1 million in the second quarter of 2010 and increased $2.4 million over $31.8 million in the first quarter of 2011. Commercial revenues for the second quarter of 2010 were favorably impacted by a $0.6 million USF estimate change. The increase in revenues was primarily due to an increase in data service revenues, mostly from the oil sector.

Managed Broadband revenues increased $4.3 million or 40.9 percent over the second quarter of 2010 and increased $0.6 million or 4.6 percent over the first quarter of 2011. The second quarter of 2010 reflected a $1.7 million contract reserve adjustment. Excluding the contract reserve adjustment, managed broadband revenues increased $2.6 million or 21.1 percent over the prior year.

·	GCI had 142,400 access lines at the end of the second quarter of 2011, representing an estimated 36 percent share of the total access line market in Alaska. Access lines decreased by 2,900 lines from the first quarter of 2011.

GCI’s facilities-based access lines totaled 112,300, representing 78.9 percent of its total access lines at the end of the second quarter of 2011. Reported facilities based access lines decreased 2,000 lines from the first quarter of 2011. The decrease in lines is primarily due to a large troop deployment from Ft. Wainwright, located near Fairbanks.

GCI had 116,400 consumer and commercial cable modem customers at the end of the second quarter of 2011, a decrease of 1,600 from the 118,000 cable modem customers at the end of the first quarter 2011. The decrease in customers is primarily due to the troop deployment in Fairbanks. Average monthly revenue per cable modem for the second quarter of 2011 was $53.85, an increase of 15.3 percent over the $46.69 figure posted for the prior year and 3.1 percent from the $52.21 figure posted for the first quarter of 2011.

Consumer

Consumer revenues increased 1.6 percent to $88.6 million as compared to $87.1 million in the second quarter of 2010 and were level with the first quarter of 2011. Consumer revenues for the second quarter of 2010 benefited from a $4.1 million in USF estimate change. Excluding the estimate change for the prior year, consumer revenues increased $5.5 million or 6.6 percent over 2010. Video, data and wireless revenue growth continue to drive financial results in the consumer business.

Consumer customer metrics for the quarter were directly impacted by the deployment of more than 4,000 troops from Fort Wainwright in Fairbanks. GCI estimates the deployment resulted in a reduction of approximately 1,100 wired access lines, 1,000 basic video subscribers, 1,200 cable modems and more than 300 wireless subscribers.

Consumer voice revenues of $13.6 million, as expected, were lower when compared to the second quarter of 2010 and were steady with the first quarter of 2011. Consumer voice revenues for the second quarter of 2010 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 the second quarter of 2011 totaled 82,300, a decrease of 2,800 lines from the second quarter of 2010 and the first quarter of 2011. The decrease in access lines, in part, is a result of customers discontinuing wire line service and relying solely on wireless devices. While GCI has consistently grown share in the wire line market, that share growth is no longer sufficient to offset the decreasing overall size of the wire line access market. The troop deployment also contributed to the decrease in local access lines as local service is often bundled with video and internet service.

GCI serves 75,900 consumer access lines on its own facilities, a decrease of 1,200 and 2,100 lines from the second quarter of 2010 and the first quarter of 2011, respectively. More than 92 percent of consumer access lines are provisioned exclusively on GCI facilities.

Consumer video revenues of $29.5 million increased 0.7 percent over the second quarter of 2010 and decreased 2.6 percent from the first quarter of 2011. The increase over the prior year is largely due to increases in video subscribers renting high definition/digital video recorder converters. Consumer basic video subscribers totaled 126,900 at the end of the second quarter of 2011, a decrease of 4,300 subscribers from the second quarter of 2010 and 3,300 subscribers from the first quarter of 2011. The decrease in subscribers from the prior year is primarily due to the troop deployment. The sequential decrease in subscribers is primarily due to the troop deployment and seasonality.

Consumer data revenues of $17.3 million increased 18.1 percent over the second quarter of 2010 and were steady with the first quarter of 2011. The increase in consumer data revenues over the prior year is due to an increase in cable modem customers and increasing average monthly usage per cable modem. GCI added 1,900 consumer cable modem customers over the second quarter of 2010 and cable modem customer counts decreased by 1,800 on a sequential basis. The sequential decrease in cable modems is primarily due to the troop deployment.

Consumer wireless revenues of $28.1 million for the second quarter of 2011 were steady with the second quarter of 2010 and increased 1.8 percent over the first quarter of 2011. Consumer wireless revenues for the second quarter of 2010 were favorably impacted by a $2.9 million USF estimate change. Excluding the USF estimate change, consumer wireless revenue increased $3.1 million or 12.4 percent over the prior year. Consumer has added 7,400 wireless customers over the end of the second quarter a year ago, an increase of 6.2 percent. Consumer wireless customers decreased by 100 lines as compared to the end of the first quarter of 2011. Sequential wireless net additions were unfavorably impacted by the troop deployment and the implementation of a new policy for wireless lifeline customers.

Network Access

Network access revenues decreased 7.2 percent to $25.2 million as compared to $27.1 million in the second quarter of 2010 and were steady with the first quarter of 2011.

Voice revenues, as expected, decreased 24.2 percent to $5.4 million from the prior year and 15.9 percent from the first quarter of 2011. The decrease in voice revenues is primarily due to the continued decrease in the wired voice market as a result of wireless and data substitution. Long distance minutes decreased 6.9 percent from the prior year and decreased 1.7 percent from the first quarter of 2011.

Data revenues were down 5.1 percent compared to the second quarter of 2010 and were steady with the first quarter of 2011. The decrease in data revenues is primarily attributable to lower rates resulting from the extension of national pricing schedules into the Alaska market and the continuing shift to IP-based transport.

Wireless revenues, primarily related to roaming traffic, increased 14.0 percent to $4.7 million over the prior year and 28.2 percent sequentially. The increase in revenues is primarily due to seasonality.

Commercial

Commercial revenues increased $2.1 million to $34.2 million as compared to $32.1 million in the second quarter of 2010 and increased $2.4 million over $31.8 million in the first quarter of 2011. Commercial revenues for the second quarter of 2010 were favorably impacted by a $0.6 million USF estimate change. The increase in revenues for the quarter was primarily due to an increase in data service revenues, mostly from the oil sector.

Voice revenues for the second quarter of 2011 decreased 13.1 percent or $1.1 million when compared to the second quarter of 2010 and were relatively steady when compared with the first quarter of 2011. Voice revenues for the second quarter decreased 8.8 percent or $0.7 million, excluding an $0.4 million USF estimate change in the second quarter of 2010. Long distance minutes decreased 4.7 percent from the prior year and decreased 1.0 percent from the first quarter of 2011. Local access lines at the end of the second quarter of 2011 increased by 400 lines sequentially. Local access lines served entirely on GCI’s facilities increased by 5,000 lines when compared to the prior year and increased by 400 over the first quarter of 2011. The increase in lines over the prior year is primarily due to the correction of a classification error in calculating the number of lines on our facilities.

Commercial video revenues increased $0.3 million over the prior year and $0.1 million sequentially. Commercial video subscribers total 20,300 at the end of the second quarter of 2011 and were unchanged when compared to the end of the prior year. Commercial video subscribers at the end of the second quarter increased by 3,100 subscribers over the first quarter of 2011. The sequential increase in basic subscribers is primarily attributed to the seasonal increase in hotel subscribers.

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 $10.0 million increased by $1.1 million as compared to the second quarter of 2010 and time and material charges for support activities increased by $1.6 million to $11.5 million for the second quarter of 2011 as a result of increased activity primarily in the oil sector. Commercial data service revenues were $21.5 million in the second quarter of 2011, an increase of $2.7 million from the second quarter of 2010 and $2.4 million from the first quarter of 2011.

Commercial wireless revenues totaled $2.4 million for the second quarter of 2011 and increased 12.5 percent or $0.3 million from the second quarter of 2010 and were steady with the first quarter of 2011. Wireless revenues for the second quarter increased 24.0 percent or $0.5 million excluding a $0.2 million USF estimate change in the second quarter of 2010. GCI had 14,600 Commercial wireless subscribers at the end of the second quarter of 2011, an increase of 2,400 subscribers over the prior year and 900 subscribers sequentially.

Managed Broadband

Managed broadband revenues increased $4.3 million or 40.9 percent over the second quarter of 2010 and increased $0.6 million or 4.6 percent over the first quarter of 2011. The second quarter of 2010 reflected a $1.7 million contract reserve adjustment. Excluding the contract reserve adjustment, managed broadband revenues increased $2.6 million or 21.1 percent over the prior year.

Regulated Operations

Regulated operations revenues totaled $5.5 million in the second quarter of 2011 and were steady when compared to the second quarter of 2010 and the first quarter of 2011. Regulated operations had 9,400 local access lines at the end of the second quarter of 2011, a decrease of 1,200 lines from the second quarter of 2010 and a decrease of 400 lines from the first quarter of 2011.

Other Items

SG&A expenses for the second quarter of 2011 totaled $57.7 million, an increase of 5.5 percent as compared to $54.7 million for the second quarter of 2010. The increase is due to increases in health care, labor and related benefits and contract services offset in part by a decrease in success sharing costs. As a percentage of revenues, SG&A expenses are steady at 34 percent in the second quarter of 2011 as compared to the prior year. SG&A expenses for the second quarter decreased $1.2 million from the first quarter of 2011. The decrease is primarily related to a reduction in success sharing costs.

GCI’s second quarter 2011 capital expenditures totaled $45.6 million as compared to $27.1 million in the second quarter of 2010 and $28.3 million in the first quarter of 2011. The second quarter 2011 capital expenditures include $19.3 million related to the TERRA-SW project and compares to $16.0 million spent in the first quarter of 2011. GCI has received RUS loan and grant funds totaling $5.7 million for the year.

GCI refinanced the company’s $320 million face value, 7.25 percent 2014 senior notes replacing them with a new issue due 2021 with a $325 million face value, 6.75 percent. In addition, GCI added two $25 million term loans to its senior credit facilities, one of which closed prior to the end of second quarter, the second add-on term loan closed July 22, 2011. The bond refinancing added no net new cash to the company and the add-on term loan proceeds were used to repay a portion of the outstandings on the company’s $75 million revolving credit facility and for other general corporate purposes, including the funding of GCI’s core capital expenditures.

GCI will hold a conference call to discuss the quarter’s results on Thursday, August 4, 2011 beginning at 2 p.m. (Eastern). To access the briefing on August 4, call the conference operator between 1:50-2:00 p.m. (Eastern Time) at 800-779-1626 (International callers should dial 1-517-623-4003) 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 800-677-6119, access code 7461 (International callers should dial 203-369-3700.)

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	2011		2010

Current assets:
Cash and cash equivalents	$	25,869		33,070

Receivables		155,632		132,856
Less allowance for doubtful receivables		7,530		9,189
Net receivables		148,102		123,667

Deferred income taxes		10,145		10,145
Prepaid expenses		9,141		5,950
Inventories		6,523		5,804
Other current assets		3,734		3,940
Total current assets		203,514		182,576

Property and equipment in service, net of depreciation		766,051		798,278
Construction in progress		77,549		31,144
Net property and equipment		843,600		829,422

Cable certificates		191,635		191,635
Goodwill		73,932		73,932
Wireless licenses		25,967		25,967
Other intangible assets, net of amortization		16,435		17,717
Deferred loan and senior notes costs, net of amortization		13,418		13,661
Other assets		16,333		16,850
Total other assets		337,720		339,762
Total assets	$	1,384,834		1,351,760

			(Continued)

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Continued)


(Amounts in thousands)
	June 30,			December 31,
Liabilities and Stockholders' Equity	2011			2010

Current liabilities:
Current maturities of obligations under long-term debt and capital leases	$	7,693			7,652
Accounts payable		39,496			35,589
Deferred revenue		18,160			17,296
Accrued payroll and payroll related obligations		20,792			22,132
Accrued interest		7,326			13,456
Accrued liabilities		12,910			12,557
Subscriber deposits		1,222			1,271
Total current liabilities		107,599			109,953

Long-term debt, net		830,595			779,201
Obligations under capital leases, excluding current maturities		81,433			84,144
Obligation under capital lease due to related party		1,890			1,885
Deferred income taxes		101,845			102,401
Long-term deferred revenue		56,645			49,175
Other liabilities		22,921			24,495
Total liabilities		1,202,928			1,151,254


Commitments and contingencies
Stockholders’ equity:
Common stock (no par):
Class A. Authorized 100,000 shares; issued 42,762 and 44,213 shares at June 30, 2011 and December 31, 2010, respectively; outstanding 42,508 and 43,958 shares at June 30, 2011 and December 31, 2010, respectively		48,796			69,396

Class B. Authorized 10,000 shares; issued and outstanding 3,176 and 3,178 shares at June 30, 2011 and December 31, 2010, respectively; convertible on a share-per-share basis into Class A common stock		2,683			2,677

Less cost of 254 and 255 Class A common shares held in treasury at June 30, 2011 and December 31, 2010, respectively		(2,240	)		(2,249	)

Paid-in capital		39,532			37,075
Retained earnings		93,135			93,607
Total stockholders' equity		181,906			200,506

Total liabilities and stockholders' equity	$	1,384,834			1,351,760

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Amounts in thousands, except per share amounts)	2011			2010			2011			2010

Revenues	$	168,089			162,326			332,866			314,745

Cost of goods sold (exclusive of depreciation and amortization shown separately below)		57,314			51,754			111,070			100,661
Selling, general and administrative expenses		57,697			54,704			116,590			107,961
Depreciation and amortization expense		30,632			30,820			62,352			61,946
Operating income		22,446			25,048			42,854			44,177

Other income (expense):
Interest expense (including amortization of deferred loan fees)		(17,294	)		(17,729	)		(34,746	)		(35,409	)
Loss on extinguishment of debt		(9,111	)		-			(9,111	)		-
Interest income		4			76			8			137
Other		(9	)		-			(33	)		-
Other expense, net		(26,410	)		(17,653	)		(43,882	)		(35,272	)

Income (loss) before income tax (expense) benefit		(3,964	)		7,395			(1,028	)		8,905

Income tax (expense) benefit		2,007			(5,465	)		556			(5,301	)

Net income (loss)	$	(1,957	)		1,930			(472	)		3,604

Basic net income (loss) per Class A common share	$	(0.04	)		0.04			(0.01	)		0.07

Basic net income (loss) per Class B common share	$	(0.04	)		0.04			(0.01	)		0.07

Diluted net income (loss) per Class A common share	$	(0.04	)		0.04			(0.01	)		0.07

Diluted net income (loss) per Class B common share	$	(0.04	)		0.04			(0.01	)		0.07

Common shares used to calculate Class A basic EPS		43,098			51,489			43,536			51,534

Common shares used to calculate Class A diluted EPS		46,276			54,745			46,714			54,786

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
	Second Quarter 2011												Second Quarter 2010
			Network				Managed		Regulated							Network						Managed			Regulated
	Consumer		Access		Commercial		Broadband		Operations		Totals		Consumer			Access			Commercial			Broadband			Operations		Totals
Revenues
Voice	$	13,625		5,441		7,340		-		5,529		31,935	$	15,254			7,176			8,448			-			5,607		36,485
Video		29,546		-		2,936		-		-		32,482		29,352			-			2,639			-			-		31,991
Data		17,257		15,023		21,518		14,639		-		68,437		14,608			15,823			18,831			10,387			-		59,649
Wireless		28,126		4,687		2,422		-		-		35,235		27,935			4,113			2,153			-			-		34,201
Total		88,554		25,151		34,216		14,639		5,529		168,089		87,149			27,112			32,071			10,387			5,607		162,326

Cost of goods sold		28,011		6,576		16,932		4,580		1,215		57,314		26,192			6,379			15,097			3,160			926		51,754

Contribution		60,543		18,575		17,284		10,059		4,314		110,775		60,957			20,733			16,974			7,227			4,681		110,572

Less SG&A		33,288		6,570		10,233		4,513		3,093		57,697		30,445			7,897			9,179			4,219			2,964		54,704
Less other		-		-		-		9		-		9		-			-			-			-			-		-
EBITDA		27,255		12,005		7,051		5,537		1,221		53,069		30,512			12,836			7,795			3,008			1,717		55,868

Add share-based compensation		894		301		319		156		-		1,670		825			390			273			155			-		1,643
Add accretion		109		38		31		16		-		194		-			-			-			-			-		-
Add other		-		-		-		-		-		-		(82	)		(39	)		(24	)		(15	)		-		(160	)
Adjusted EBITDA	$	28,258		12,344		7,401		5,709		1,221		54,933	$	31,255			13,187			8,044			3,148			1,717		57,351


GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
	Second Quarter 2011												First Quarter 2011
			Network				Managed		Regulated							Network						Managed			Regulated
	Consumer		Access		Commercial		Broadband		Operations		Totals		Consumer			Access			Commercial			Broadband			Operations		Totals
Revenues
Voice	$	13,625		5,441		7,340		-		5,529		31,935	$	13,752			6,470			7,573			-			5,439		33,234
Video		29,546		-		2,936		-		-		32,482		30,339			-			2,840			-			-		33,179
Data		17,257		15,023		21,518		14,639		-		68,437		16,701			14,972			19,095			13,995			-		64,763
Wireless		28,126		4,687		2,422		-		-		35,235		27,625			3,655			2,321			-			-		33,601
Total		88,554		25,151		34,216		14,639		5,529		168,089		88,417			25,097			31,829			13,995			5,439		164,777

Cost of goods sold		28,011		6,576		16,932		4,580		1,215		57,314		27,308			6,665			14,866			3,914			1,003		53,756

Contribution		60,543		18,575		17,284		10,059		4,314		110,775		61,109			18,432			16,963			10,081			4,436		111,021

Less SG&A		33,288		6,570		10,233		4,513		3,093		57,697		33,375			6,778			10,537			4,467			3,736		58,893
Less other		-		-		-		9		-		9		-			-			-			24			-		24
EBITDA		27,255		12,005		7,051		5,537		1,221		53,069		27,734			11,654			6,426			5,590			700		52,104

Add share-based compensation		894		301		319		156		-		1,670		619			212			224			115			-		1,170
Add accretion		109		38		31		16		-		194		41			14			12			6			-		72
Adjusted EBITDA	$	28,258		12,344		7,401		5,709		1,221		54,933	$	28,393			11,880			6,662			5,711			700		53,346

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
	Six Months Ended June 30, 2011												Six Months Ended June 30, 2010
			Network				Managed		Regulated							Network						Managed			Regulated
	Consumer		Access		Commercial		Broadband		Operations		Totals		Consumer			Access			Commercial			Broadband			Operations		Totals
Revenues
Voice	$	27,377		11,911		14,913		-		10,968		65,169	$	29,110			13,835			16,291			-			11,667		70,903
Video		59,885		-		5,776		-		-		65,661		58,376			-			4,956			-			-		63,332
Data		33,958		29,995		40,613		28,634		-		133,200		28,734			32,152			34,333			22,472			-		117,691
Wireless		55,751		8,342		4,743		-		-		68,836		51,297			7,308			4,214			-			-		62,819
Total		176,971		50,248		66,045		28,634		10,968		332,866		167,517			53,295			59,794			22,472			11,667		314,745

Cost of goods sold		55,319		13,241		31,798		8,494		2,218		111,070		51,825			12,907			27,468			6,378			2,083		100,661

Contribution		121,652		37,007		34,247		20,140		8,750		221,796		115,692			40,388			32,326			16,094			9,584		214,084

Less SG&A		66,664		13,348		20,769		8,980		6,829		116,590		59,611			15,741			18,324			8,261			6,024		107,961
Less other		-		-		-		33		-		33		-			-			-			-			-		-
EBITDA		54,988		23,659		13,478		11,127		1,921		105,173		56,081			24,647			14,002			7,833			3,560		106,123

Add share-based compensation		1,514		514		542		270		-		2,840		1,208			570			423			245			-		2,446
Add accretion		149		51		43		23		-		266		-			-			-			-			-		-
Add other		-		-		-		-		-		-		(82	)		(39	)		(24	)		(15	)		-		(160	)
Adjusted EBITDA	$	56,651		24,224		14,063		11,420		1,921		108,279	$	57,207			25,178			14,401			8,063			3,560		108,409

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS
(Unaudited)

							June 30, 2011						June 30, 2011
							as compared to						as compared to
	June 30,		June 30,		March 31,		June 30,			March 31,			June 30,			March 31,
	2011		2010		2011		2010			2011			2010			2011
Consumer
Voice
Long-distance subscribers		84,600		90,200		87,900		(5,600	)		(3,300	)		-6.2	%		-3.8	%
Total local access lines in service		82,300		85,100		85,100		(2,800	)		(2,800	)		-3.3	%		-3.3	%
Local access lines in service on GCI facilities		75,900		77,100		78,000		(1,200	)		(2,100	)		-1.6	%		-2.7	%

Video
Basic subscribers		126,900		131,200		130,200		(4,300	)		(3,300	)		-3.3	%		-2.5	%
Digital programming tier subscribers		77,400		80,600		81,600		(3,200	)		(4,200	)		-4.0	%		-5.1	%
HD/DVR converter boxes		87,700		86,500		89,300		1,200			(1,600	)		1.4	%		-1.8	%
Homes passed		239,000		234,700		239,000		4,300			-			1.8	%		0.0	%

Data
Cable modem subscribers		105,400		103,500		107,200		1,900			(1,800	)		1.8	%		-1.7	%

Wireless
Wireless lines in service		126,400		119,000		126,500		7,400			(100	)		6.2	%		-0.1	%

Network Access Services
Data:
Total ISP access lines in service		1,600		1,700		1,700		(100	)		(100	)		-5.9	%		-5.9	%
Total ISP access lines in service on GCI facilities		1,400		1,400		1,300

Commercial
Voice:
Long-distance subscribers		9,100		9,400		9,100		(300	)		-			-3.2	%		0.0	%
Total local access lines in service		49,100		48,000		48,700		1,100			400			2.3	%		0.8	%
Local access lines in service on GCI facilities		25,600		20,600		25,200		5,000			400			24.3	%		1.6	%

Video
Hotels and mini-headend subscribers		18,300		18,500		15,200		(200	)		3,100			-1.1	%		20.4	%
Basic subscribers		2,000		1,800		2,000		200			-			11.1	%		0.0	%
Total basic subscribers		20,300		20,300		17,200		-			3,100			0.0	%		18.0	%

Data
Cable modem subscribers		11,000		10,800		10,800		200			200			1.9	%		1.9	%

Wireless
Wireless lines in service		14,600		12,200		13,700		2,400			900			19.7	%		6.6	%

Regulated Operations
Voice:
Total local access lines in service		9,400		10,600		9,800		(1,200	)		(400	)		-11.3	%		-4.1	%

							June 30, 2011						June 30, 2011
	Three Months Ended						as Compared to						as Compared to
	June 30,		June 30,		March 31,		June 30,			March 31,			June 30,			March 31,
		2011		2010		2011		2010			2011			2010			2011
Consumer
Voice
Long-distance minutes carried (in millions)		23.2		26.7		24.4		(3.5	)		(1.2	)		-13.1	%		-4.9	%

Video
Average monthly gross revenue per subscriber	$	76.47	$	74.54	$	77.60	$	1.93		$	(1.13	)		2.6	%		-1.5	%

Wireless
Average monthly gross revenue per subscriber	$	70.52	$	75.07	$	69.46	$	(4.55	)	$	1.06			-6.1	%		1.5	%

Network Access Services
Voice
Long-distance minutes carried (in millions)		187.5		201.3		190.7		(13.8	)		(3.2	)		-6.9	%		-1.7	%

Commercial
Voice:
Long-distance minutes carried (in millions)		28.0		29.4		28.3		(1.4	)		(0.3	)		-4.8	%		-1.1	%

Total
Long-distance minutes carried (in millions)		238.7		257.4		243.4		(18.7	)		(4.7	)		-7.3	%		-1.9	%

General Communication, Inc.

Non-GAAP Financial Reconciliation Schedule

(Unaudited, Amounts in Millions)

	Three Months Ended
	June 30, 2011			June 30, 2010			March 31, 2011
Net income (loss)	$	(2.0	)		1.9			1.5
Income tax expense (benefit)		(2.0	)		5.5			1.4
Income (loss) before income tax expense (benefit)		(4.0	)		7.4			2.9

Other expense:
Interest expense (including amortization of deferred loan fees)		17.3			17.8			17.5
Interest income		---			(0.1	)		---
Loss on extinguishment of debt		9.1			---			---
Other expense, net		26.4			17.7			17.5

Operating income		22.4			25.1			20.4
Depreciation and amortization expense		30.6			30.8			31.7

EBITDA (Note 2)		53.0			55.9			52.1
Share-based compensation		1.7			1.6			1.1
Accretion		0.2			---			0.1
Non-cash contribution adjustment		---			(0.1	)		---
Adjusted EBITDA (Note 1)	$	54.9			57.4			53.3

General Communication, Inc.

Non-GAAP Financial Reconciliation Schedule

(Unaudited, Amounts in Millions)


	Six Months Ended
	June 30, 2011			June 30, 2010
Net income (loss)	$	(0.5	)		3.6
Income tax expense (benefit)		(0.5	)		5.3
Income (loss) before income tax expense (benefit)		(1.0	)		8.9

Other (income) expense:
Interest expense (including amortization of deferred loan fees)		34.8			35.4
Interest income		---			(0.1	)
Loss on extinguishment of debt		9.1			---
Other expense, net		43.9			35.3

Operating income		42.9			44.2
Depreciation and amortization expense		62.3			61.9

EBITDA (Note 2)		105.2			106.1
Share-based compensation		2.8			2.4
Accretion		0.3			---
Non-cash contribution adjustment		---			(0.1	)
Adjusted EBITDA (Note 1)	$	108.3			108.4

Notes:

(1) EBITDA (as defined in Note 2 below) before deducting share-based compensation and accretion expense.

(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.