exhibit99-1.htm

Exhibit 99.1

November 2, 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 THIRD QUARTER 2011 FINANCIAL RESULTS

·	Consolidated revenue of $177.7 million

·	Adjusted EBITDA of $63.1 million

·	Net income of $7.2 million or $0.15 per diluted share

ANCHORAGE, AK – General Communication, Inc. (“GCI”) (NASDAQ:GNCMA) today reported its third quarter 2011 results with revenues increasing to $177.7 million over revenues of $171.5 million in the third quarter of 2010. Adjusted EBITDA for the third quarter of 2011 was $63.1 million, an increase of $0.4 million over Adjusted EBITDA of $62.7 million for the third quarter of 2010. Adjusted EBITDA for the third quarter of 2011 increased $2.3 million or 3.7 percent after excluding the net benefit of $3.8 million of billing disputes offset by $1.9 million in accrued accident expenses reflected in the third quarter of 2010.

Net income for the third quarter totaled $7.2 million or earnings per diluted share of $0.15 and compares to net income of $7.6 million, or earnings per diluted share of $0.14 for the same period of 2010.

Third quarter revenues increased 5.7 percent or $9.6 million over second quarter of 2011 revenues. Adjusted EBITDA for the third quarter increased 14.9 percent or $8.2 million over the second quarter of 2011 Adjusted EBITDA.

“Third quarter results are significantly improved on a sequential basis.” said GCI president Ron Duncan. “However, year over year results are relatively flat and our overall performance is not as strong as we had expected. We are experiencing continued decreases in our wireline customer base as consumers cut the cord and move to wireless and growth in our wireless segment has been slower than anticipated due to delays in the turn up of our new high speed networks.”

“Construction of our important $88 million TERRA microwave project is basically complete and we expect to turn up service on it before the end of this year. For the first time residents of southwest Alaska will have access to high speed terrestrial broadband services.”

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. GCI expects 2011 revenues will be within the range of the revenue guidance. Adjusted EBITDA is now expected in the range of $225 million to $227 million for 2011.

Highlights

GCI has substantially completed construction on TERRA-Southwest (TERRA-SW), its project to extend terrestrial broadband service to Bristol Bay and the Yukon-Kuskokwim Delta. The $88 million project will provide terrestrial broadband to 65 communities in Southwest Alaska for the first time. GCI will begin to cut over customers to terrestrial from satellite service before the end of the year 2011. TERRA-SW was originally scheduled to be completed by the end of 2013.

GCI repurchased 1,919,900 shares of its Class A common stock in the third quarter of 2011 at an average price per share of $9.32. 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 third quarter of 2011 GCI had approximately 43.9 million shares outstanding.

·	Managed broadband revenues increased $3.9 million or 28.5 percent over the third quarter of 2010 and increased $2.8 million or 18.9 percent over the second quarter of 2011.

·	GCI is the second largest wireless provider in Alaska with 140,700 wireless subscribers at the end of the quarter. GCI launched 4G service in Anchorage in September and will upgrade service in the next ten largest communities to 3G service before the end of the year.

GCI entered into an arrangement under the New Markets Tax Credit (NMTC) program with US Bancorp to help fund a $34.5 million project to extend terrestrial broadband service to communities in Northwest Alaska. This project is called TERRA-Northwest (TERRA-NW) and will complement the TERRA-SW project. The NMTC program was provided for in the Community Renewal Tax Relief Act of 2000 (the Act) to induce capital investment in qualified low income communities. The Act permits taxpayers to claim credits against their federal income taxes of up to 39 percent of qualified investments. The NMTC program will provide $16.5 million of the total project. The Regulatory Commission of Alaska will provide another $5.3 million in grants for the project. GCI will provide the remaining $12.7 million to complete the project.

On October 27, 2011 the FCC adopted an order that is expected to reform the methodology for distributing Universal Service Fund (“USF”) high cost support for voice and broadband services, as well as the system by which carriers compensate each other for terminating traffic. These changes are likely to alter how GCI will be compensated for providing services in the state. Putting aside any potential impact from the order, GCI expects to record approximately $54 million of USF high cost support revenue in 2011. Although the detailed order has not yet been released, GCI expects that high cost support for markets defined as urban will be subject to a five year transitional phase out beginning July 1, 2012. GCI anticipates that changes to the Universal Service Fund program will reduce high cost support revenue by approximately $5 million per year in both 2012 and 2013. Once the order has been released and fully analyzed, GCI will re-evaluate its on-going program of reinvestment in light of the potential impact of the regulatory changes on free cash flow.

·	GCI had 139,200 access lines at the end of the third quarter of 2011, representing an estimated 36 percent share of the total access line market in Alaska. Access lines decreased by 3,200 lines from the second quarter of 2011. The line decreases were primarily consumer access lines.

GCI’s facilities-based access lines totaled 109,700, representing 78.8 percent of its total access lines at the end of the third quarter of 2011. Reported facilities based access lines decreased 2,600 lines from the second quarter of 2011. The decrease in facilities based access lines were primarily consumer access lines.

GCI had 117,900 consumer and commercial cable modem customers at the end of the third quarter of 2011, an increase of 1,500 over the 116,400 cable modem customers at the end of the second quarter 2011. Average monthly revenue per cable modem for the third quarter of 2011 was $57.43, an increase of 13.5 percent over the $50.61 figure posted for the prior year and 6.6 percent from the $53.85 figure posted for the second quarter of 2011.

Consumer

Consumer revenues increased 0.6 percent to $89.3 million as compared to $88.7 million in the third quarter of 2010 and $88.6 million in the second quarter of 2011. Data and wireless continue to support financial results in the consumer business.

Consumer voice revenues of $13.2 million, as expected, were lower as compared to $14.6 million the third quarter of 2010 and $13.6 million in the second quarter of 2011. Consumer local access lines in service at the end of the third quarter of 2011 totaled 79,100, a decrease of 5,600 lines from the third quarter of 2010 and 3,200 lines from the second quarter of 2011. The decrease in access lines is primarily 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, the share growth is no longer sufficient to offset the decreasing overall size of the wire line access market. Troop deployment also contributed to the decrease in local access lines, which GCI expects to continue through and past the end of the year as new troop deployments have been announced.

GCI serves 73,200 consumer access lines on its own facilities, a decrease of 3,900 and 2,700 lines from the third quarter of 2010 and the second quarter of 2011, respectively. More than 92 percent of consumer access lines are provisioned exclusively on GCI facilities.

Consumer video revenues of $29.2 million decreased 1.9 percent from the third quarter of 2010 and 1.3 percent from the second quarter of 2011. The decrease from the prior year is largely due to a decrease in video subscribers. Consumer basic video subscribers totaled 126,400 at the end of the third quarter of 2011, a decrease of 500 subscribers from the second quarter of 2011.

Consumer data revenues of $18.1 million increased 14.5 percent over the third quarter of 2010 and 4.8 percent over the second 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 2,400 consumer cable modem customers over the third quarter of 2010 and 1,400 cable modem customer on a sequential basis.

Consumer wireless revenues of $28.9 million for the third quarter of 2011 were steady with the third quarter of 2010 and increased 2.6 percent over the second quarter of 2011. Consumer has added 2,900 wireless customers over the end of the third quarter a year ago, an increase of 2.4 percent. Consumer wireless customers decreased by 600 lines as compared to the end of the second quarter of 2011. Sequential wireless gross additions were unfavorably impacted by the implementation of a new policy for Lifeline customers which reduced net wireless subscriber counts for the third quarter by more than 1,600 and for the year by more than 2,600. The delay in GCI’s roll out of higher speed wireless service offerings has resulted in slower post-paid customer growth than originally expected.

Network Access

Network access revenues increased 4.5 percent to $29.5 million as compared to $28.2 million in the third quarter of 2010 and increased 17.2 percent or $4.3 million as compared to the second quarter of 2011.

Voice revenues, as expected, decreased 28.1 percent to $6.2 million from the prior year and increased 14.2 percent over the second quarter of 2011. The decrease in voice revenues for the year is primarily due to the continued decrease in the wired voice market as a result of wireless and data substitution. Long distance minutes decreased 1.4 percent from the prior year and increased 8.0 percent over the second quarter of 2011. The sequential increase in revenues and minutes is primarily due to seasonality.

Data revenues increased $3.2 million or 20.6 percent compared to the third quarter of 2010 and increased $2.1 million or 14.1 percent compared to the second quarter of 2011. The increase in data revenues is due in part to the continuing shift to IP-based transport and $1.9 million in revenues due to special project work for a new customer.

Wireless revenues, primarily related to roaming traffic, increased 14.1 percent to $6.1 million over the prior year and 30.4 percent sequentially. The increase in revenues is primarily due to seasonality.

Commercial

Commercial revenues of $35.6 million were level with the third quarter of 2010 and increased $1.4 million over $34.2 million in the second quarter of 2011.

Voice revenues for the third quarter of 2011 decreased 11.1 percent or $0.9 million when compared to the third quarter of 2010 and were relatively steady when compared with the second quarter of 2011. Long distance minutes decreased 4.6 percent from the prior year and increased 1.3 percent over the second quarter of 2011. Local access lines at the end of the second quarter of 2011 increased by 100 lines sequentially. Local access lines served entirely on GCI’s facilities increased by 4,900 lines when compared to the prior year and increased by 200 over the second 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 of $2.8 million were relatively steady with the prior year and the second quarter of 2011. Commercial video subscribers total 20,000 at the end of the third quarter of 2011 an increase of 2,200 subscribers when compared to the end of the third quarter of the prior year. Commercial video subscribers at the end of the third quarter decreased by 300 subscribers from the second quarter of 2011.

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 $10.3 million increased by $1.1 million as compared to the third quarter of 2010 and time and material charges for support activities decreased $0.3 million from the third quarter of 2010. Commercial data service revenues were $23.0 million in the third quarter of 2011, an increase of $0.8 million over the third quarter of 2010 and $1.5 million over the second quarter of 2011. The sequential increase in data service revenues is primarily attributed to a seasonal increase in time and material charges for support activities in the state’s oil sector.

Commercial wireless revenues totaled $2.6 million for the third quarter of 2011 and increased 13.5 percent or $0.3 million over the third quarter of 2010 and were steady with the second quarter of 2011. GCI had 14,900 commercial wireless subscribers at the end of the third quarter of 2011, an increase of 1,300 subscribers over the prior year and 300 subscribers sequentially.

Managed Broadband

Managed broadband revenues increased $3.9 million or 28.5 percent over the third quarter of 2010 and increased $2.8 million or 18.9 percent over the second quarter of 2011. The increase in revenues for the year and sequentially is due to an increase in activity by rural school districts and rural health agencies.

Regulated Operations

Regulated operations revenues totaled $6.0 million in the third quarter of 2011, an increase of $0.4 million over the third quarter of 2010 and $0.5 million over the second quarter of 2011. Regulated operations had 9,300 local access lines at the end of the third quarter of 2011, a decrease of 900 lines from the third quarter of 2010 and a decrease of 100 lines from the second quarter of 2011.

Other Items

SG&A expenses for the third quarter of 2011 totaled $54.5 million, a decrease of 7.0 percent as compared to $58.5 million for the third quarter of 2010. The decrease is due a reduction in success sharing costs and the absence of costs associated with an accident involving our company-owned aircraft in August 2010. As a percentage of revenues, SG&A expenses decreased to 31 percent as compared to 34 percent in the second quarter of 2011 and the prior year.

GCI’s third quarter 2011 capital expenditures totaled $57.2 million as compared to $24.7 million in the third quarter of 2010 and $45.6 million in the second quarter of 2011. The third quarter 2011 capital expenditures include $31.6 million related to the TERRA-SW project and compares to $20.6 million spent in the second quarter of 2011. GCI has incurred $77.1 million of the estimated total cost for the project of $88 million. GCI has received RUS loan and grant funds for the project totaling $30.7 million.

GCI will hold a conference call to discuss the quarter’s results on Thursday, November 3, 2011 beginning at 2 p.m. (Eastern). To access the briefing on November 3, call the conference operator between 1:50-2:00 p.m. (Eastern Time) at 800-779-8168 (International callers should dial 1-312-470-7398) 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 866-402-3767, access code 7461 (International callers should dial 203-369-0554.)

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 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)
	September 30,		December 31,
Assets	2011		2010

Current assets:
Cash and cash equivalents	$	34,634		33,070

Receivables		168,840		132,856
Less allowance for doubtful receivables		6,273		9,189
Net receivables		162,567		123,667

Deferred income taxes		10,145		10,145
Prepaid expenses		8,434		5,950
Inventories		7,949		5,804
Other current assets		3,658		3,940
Total current assets		227,387		182,576

Property and equipment in service, net of depreciation		762,170		798,278
Construction in progress		108,692		31,144
Net property and equipment		870,862		829,422

Cable certificates		191,635		191,635
Goodwill		73,932		73,932
Wireless licenses		25,967		25,967
Restricted cash		16,546		-
Other intangible assets, net of amortization		16,549		17,717
Deferred loan and senior notes costs, net of amortization		13,223		13,661
Other assets		15,271		16,850
Total other assets		353,123		339,762
Total assets	$	1,451,372		1,351,760

			(Continued)

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


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

Current liabilities:
Current maturities of obligations under long-term debt and capital leases	$	8,042		7,652
Accounts payable		49,726		35,589
Deferred revenue		18,583		17,296
Accrued payroll and payroll related obligations		20,313		22,132
Accrued interest		21,969		13,456
Accrued liabilities		11,370		12,557
Subscriber deposits		1,304		1,271
Total current liabilities		131,307		109,953

Long-term debt, net		852,374		779,201
Obligations under capital leases, excluding current maturities		80,031		84,144
Obligation under capital lease due to related party		1,893		1,885
Deferred income taxes		109,804		102,401
Long-term deferred revenue		63,914		49,175
Other liabilities		22,433		24,495
Total liabilities		1,261,756		1,151,254


Commitments and contingencies
Stockholders’ equity:
Common stock (no par):
Class A. Authorized 100,000 shares; issued 40,966 and 44,213 shares at September 30, 2011 and December 31, 2010, respectively; outstanding 40,712 and 43,958 shares at September 30, 2011 and December 31, 2010, respectively		31,535		69,396

Class B. Authorized 10,000 shares; issued and outstanding 3,172 and 3,178 shares at September 30, 2011 and December 31, 2010, respectively; convertible on a share-per-share basis into Class A common stock		2,680		2,677

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

Paid-in capital		40,750		37,075
Retained earnings		100,345		93,607
Total General Communication, Inc. stockholders' equity		173,070		200,506
Noncontrolling interest		16,546		-
Total stockholders' equity		189,616		200,506

Total liabilities and stockholders' equity	$	1,451,372		1,351,760

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

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

Revenues	$	177,703			171,509			510,569			486,254

Cost of goods sold (exclusive of depreciation and amortization shown separately below)		60,664			52,486			171,734			153,147
Selling, general and administrative expenses		54,453			58,532			171,043			166,493
Depreciation and amortization expense		30,702			30,288			93,054			92,234
Operating income		31,884			30,203			74,738			74,380

Other income (expense):
Interest expense (including amortization of deferred loan fees)		(16,678	)		(17,760	)		(51,424	)		(53,169	)
Loss on extinguishment of debt		-			-			(9,111	)		-
Interest income		22			99			30			236
Other		(59	)		-			(92	)		-
Other expense, net		(16,715	)		(17,661	)		(60,597	)		(52,933	)

Income before income tax expense		15,169			12,542			14,141			21,447

Income tax expense		(7,959	)		(4,959	)		(7,403	)		(10,260	)

Net income	$	7,210			7,583			6,738			11,187

Basic net income per Class A common share	$	0.16			0.14			0.15			0.20

Basic net income per Class B common share	$	0.16			0.14			0.15			0.20

Diluted net income per Class A common share	$	0.15			0.14			0.13			0.20

Diluted net income per Class B common share	$	0.15			0.14			0.13			0.20

Common shares used to calculate Class A basic EPS		41,768			51,496			42,940			51,521

Common shares used to calculate Class A diluted EPS		45,464			54,940			46,682			54,808

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
	Third Quarter 2011												Third Quarter 2010
			Network				Managed		Regulated							Network						Managed			Regulated
	Consumer		Access		Commercial		Broadband		Operations		Totals		Consumer			Access			Commercial			Broadband			Operations		Totals
Revenues
Voice	$	13,164		6,213		7,137		-		5,990		32,504	$	14,601			8,636			8,025			-			5,595		36,857
Video		29,155		-		2,830		-		-		31,985		29,720			-			2,953			-			-		32,673
Data		18,088		17,140		23,040		17,407		-		75,675		15,797			14,208			22,211			13,548			-		65,764
Wireless		28,860		6,114		2,565		-		-		37,539		28,595			5,360			2,260			-			-		36,215
Total		89,267		29,467		35,572		17,407		5,990		177,703		88,713			28,204			35,449			13,548			5,595		171,509

Cost of goods sold		27,436		9,531		17,232		4,540		1,925		60,664		25,374			5,547			16,731			3,545			1,289		52,486

Contribution		61,831		19,936		18,340		12,867		4,065		117,039		63,339			22,657			18,718			10,003			4,306		119,023

Less SG&A		31,737		6,300		9,358		4,031		3,027		54,453		33,248			8,178			9,955			4,392			2,759		58,532
Less other		-		-		-		59		-		59		-			-			-			-			-		-
EBITDA		30,094		13,636		8,982		8,777		1,038		62,527		30,091			14,479			8,763			5,611			1,547		60,491

Add share-based compensation		173		56		104		51		-		384		1,121			549			362			215			3		2,250
Add accretion		106		37		31		16		-		190		-			-			-			-			-		-
Adjusted EBITDA	$	30,373		13,729		9,117		8,844		1,038		63,101	$	31,212			15,028			9,125			5,826			1,550		62,741


GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
	Third Quarter 2011												Second Quarter 2011
			Network				Managed		Regulated							Network						Managed			Regulated
	Consumer		Access		Commercial		Broadband		Operations		Totals		Consumer			Access			Commercial			Broadband			Operations		Totals
Revenues
Voice	$	13,164		6,213		7,137		-		5,990		32,504	$	13,625			5,441			7,340			-			5,529		31,935
Video		29,155		-		2,830		-		-		31,985		29,546			-			2,936			-			-		32,482
Data		18,088		17,140		23,040		17,407		-		75,675		17,257			15,023			21,518			14,639			-		68,437
Wireless		28,860		6,114		2,565		-		-		37,539		28,126			4,687			2,422			-			-		35,235
Total		89,267		29,467		35,572		17,407		5,990		177,703		88,554			25,151			34,216			14,639			5,529		168,089

Cost of goods sold		27,436		9,531		17,232		4,540		1,925		60,664		28,011			6,576			16,932			4,580			1,215		57,314

Contribution		61,831		19,936		18,340		12,867		4,065		117,039		60,543			18,575			17,284			10,059			4,314		110,775

Less SG&A		31,737		6,300		9,358		4,031		3,027		54,453		33,288			6,570			10,233			4,513			3,093		57,697
Less other		-		-		-		59		-		59		-			-			-			9			-		9
EBITDA		30,094		13,636		8,982		8,777		1,038		62,527		27,255			12,005			7,051			5,537			1,221		53,069

Add share-based compensation		173		56		104		51		-		384		894			301			319			156			-		1,670
Add accretion		106		37		31		16		-		190		109			38			31			16			-		194
Adjusted EBITDA	$	30,373		13,729		9,117		8,844		1,038		63,101	$	28,258			12,344			7,401			5,709			1,221		54,933

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
	Nine Months Ended September 30, 2011												Nine Months Ended September 30, 2010
			Network				Managed		Regulated							Network						Managed			Regulated
	Consumer		Access		Commercial		Broadband		Operations		Totals		Consumer			Access			Commercial			Broadband			Operations		Totals
Revenues
Voice	$	40,541		18,124		22,050		-		16,958		97,673	$	43,711			22,471			24,316			-			17,262		107,760
Video		89,040		-		8,606		-		-		97,646		88,096			-			7,909			-			-		96,005
Data		52,046		47,135		63,653		46,041		-		208,875		44,531			46,360			56,544			36,020			-		183,455
Wireless		84,611		14,456		7,308		-		-		106,375		79,892			12,668			6,474			-			-		99,034
Total		266,238		79,715		101,617		46,041		16,958		510,569		256,230			81,499			95,243			36,020			17,262		486,254

Cost of goods sold		82,755		22,772		49,030		13,034		4,143		171,734		77,199			18,454			44,199			9,923			3,372		153,147

Contribution		183,483		56,943		52,587		33,007		12,815		338,835		179,031			63,045			51,044			26,097			13,890		333,107

Less SG&A		98,402		19,647		30,126		13,012		9,856		171,043		92,858			23,919			28,279			12,654			8,783		166,493
Less other		-		-		-		92		-		92		-			-			-			-			-		-
EBITDA		85,081		37,296		22,461		19,903		2,959		167,700		86,173			39,126			22,765			13,443			5,107		166,614

Add share-based compensation		1,686		569		646		323		-		3,224		2,329			1,119			785			460			3		4,696
Add accretion		257		88		73		38		-		456		-			-			-			-			-		-
Less other		-		-		-		-		-		-		(82	)		(39	)		(24	)		(15	)		-		(160	)
Adjusted EBITDA	$	87,024		37,953		23,180		20,264		2,959		171,380	$	88,420			40,206			23,526			13,888			5,110		171,150

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

							September 30, 2011						September 30, 2011
							as compared to						as compared to
	September 30,		September 30,		June 30,		September 30,			June 30,			September 30,			June 30,
	2011		2010		2011		2010			2011			2010			2011
Consumer
Voice
Long-distance subscribers		81,700		89,000		84,600		(7,300	)		(2,900	)		-8.2	%		-3.4	%
Total local access lines in service		79,100		84,700		82,300		(5,600	)		(3,200	)		-6.6	%		-3.9	%
Local access lines in service on GCI facilities		73,200		77,100		75,900		(3,900	)		(2,700	)		-5.1	%		-3.6	%

Video
Basic subscribers		126,400		130,500		126,900		(4,100	)		(500	)		-3.1	%		-0.4	%
Digital programming tier subscribers		76,700		80,600		77,400		(3,900	)		(700	)		-4.8	%		-0.9	%
HD/DVR converter boxes		87,400		87,500		87,700		(100	)		(300	)		-0.1	%		-0.3	%
Homes passed		239,800		234,900		239,000		4,900			800			2.1	%		0.3	%

Data
Cable modem subscribers		106,800		104,400		105,400		2,400			1,400			2.3	%		1.3	%

Wireless
Wireless lines in service		125,800		122,900		126,400		2,900			(600	)		2.4	%		-0.5	%

Network Access Services
Data:
Total ISP access lines in service		1,600		1,700		1,600		(100	)		-			-5.9	%		0.0	%
Total ISP access lines in service on GCI facilities		1,400		1,300		1,400		100			-			7.7	%		0.0	%

Commercial
Voice:
Long-distance subscribers		8,600		9,300		9,100		(700	)		(500	)		-7.5	%		-5.5	%
Total local access lines in service		49,200		48,100		49,100		1,100			100			2.3	%		0.2	%
Local access lines in service on GCI facilities		25,800		20,900		25,600		4,900			200			23.4	%		0.8	%

Video
Hotels and mini-headend subscribers		18,000		16,000		18,300		2,000			(300	)		12.5	%		-1.6	%
Basic subscribers		2,000		1,800		2,000		200			-			11.1	%		0.0	%
Total basic subscribers		20,000		17,800		20,300		2,200			(300	)		12.4	%		-1.5	%

Data
Cable modem subscribers		11,100		10,800		11,000		300			100			2.8	%		0.9	%

Wireless
Wireless lines in service		14,900		13,600		14,600		1,300			300			9.6	%		2.1	%

Regulated Operations
Voice:
Total local access lines in service		9,300		10,200		9,400		(900	)		(100	)		-8.8	%		-1.1	%

							September 30, 2011						September 30, 2011
	Three Months Ended						as Compared to						as Compared to
	September 30,		September 30,		June 30,		September 30,			June 30,			September 30,			June 30,
		2011		2010		2011		2010			2011			2010			2011
Consumer
Voice
Long-distance minutes carried (in millions)		22.3		25.6		23.2		(3.3	)		(0.9	)		-12.9	%		-3.9	%

Video
Average monthly gross revenue per subscriber	$	76.85	$	75.85	$	76.47	$	1.00		$	0.38			1.3	%		0.5	%

Wireless
Average monthly gross revenue per subscriber	$	72.60	$	74.61	$	70.52	$	(2.01	)	$	2.08			-2.7	%		2.9	%

Network Access Services
Voice
Long-distance minutes carried (in millions)		202.5		205.4		187.5		(2.9	)		15.0			-1.4	%		8.0	%

Commercial
Voice:
Long-distance minutes carried (in millions)		28.4		29.8		28.0		(1.4	)		0.4			-4.7	%		1.4	%

Total
Long-distance minutes carried (in millions)		253.2		260.8		238.7		(7.6	)		14.5			-2.9	%		6.1	%

General Communication, Inc.

Non-GAAP Financial Reconciliation Schedule

(Unaudited, Amounts in Millions)

	Three Months Ended
	September 30, 2011		September 30, 2010			June 31, 2011
Net income (loss)	$	7.2		7.6			(2.0	)
Income tax expense (benefit)		8.0		4.9			(2.0	)
Income (loss) before income tax expense (benefit)		15.2		12.5			(4.0	)

Other expense:
Interest expense (including amortization of deferred loan fees)		16.7		17.8			17.3
Interest income		---		(0.1	)		---
Loss on extinguishment of debt		---		---			9.1
Other expense, net		16.7		17.7			26.4

Operating income		31.9		30.2			22.4
Depreciation and amortization expense		30.7		30.3			30.6

EBITDA (Note 2)		62.6		60.5			53.0
Share-based compensation		0.4		2.2			1.7
Accretion		0.1		---			0.2
Adjusted EBITDA (Note 1)	$	63.1		62.7			54.9

General Communication, Inc.

Non-GAAP Financial Reconciliation Schedule

(Unaudited, Amounts in Millions)


	Nine Months Ended
	September 30, 2011		September 30, 2010
Net income	$	6.7		11.2
Income tax expense		7.4		10.2
Income before income tax expense		14.1		21.4

Other (income) expense:
Interest expense (including amortization of deferred loan fees)		51.4		53.2
Interest income		---		(0.2	)
Loss on extinguishment of debt		9.1		---
Other		0.1		---
Other expense, net		60.6		53.0

Operating income		74.7		74.4
Depreciation and amortization expense		93.1		92.2

EBITDA (Note 2)		167.8		166.6
Share-based compensation		3.2		4.7
Accretion		0.4		---
Non-cash contribution adjustment		---		(0.1	)
Adjusted EBITDA (Note 1)	$	171.4		171.2

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 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.