Exhibit 99.1
 


May 2, 2012
 
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 FIRST QUARTER 2012 FINANCIAL RESULTS
 
·  
Consolidated revenue of $171.9 million
·  
Adjusted EBITDA of $54.8 million
·  
Net income of $1.4 million or $0.03 per diluted share
 
ANCHORAGE, AK – General Communication, Inc. (“GCI”) (NASDAQ:GNCMA) today reported its first quarter 2012 results with revenues increasing 4.3 percent to $171.9 million over revenues of $164.8 million in the first quarter of 2011. Adjusted EBITDA increased $1.5 million or 2.8 percent over the first quarter of 2011 EBITDA of $53.3 million. Revenues and EBITDA for the first quarter of 2012 were impacted by a $1.3 million decrease in USF support when compared to the first quarter of the prior year.
 
GCI’s first quarter 2012 net income totaled $1.4 million or earnings per diluted share of $0.03 and compares to net income of $1.4 million, or earnings per diluted share of $0.02 for the first quarter of 2011.
 
First quarter of 2012 revenues increased $3.1 million or 1.8 percent over revenues of $168.8 million in the fourth quarter of 2011. Adjusted EBITDA increased $2.6 million or 4.9 percent over adjusted EBITDA of $52.3 million in the fourth quarter of 2011.
 
“Strong results in four out of five business units, led by managed broadband, offset weak results in consumer to bring the quarter in approximately in accordance with our expectations,” said GCI president Ron Duncan. “The consumer group continues to suffer from soft customer metrics. We launched the iPhone last week and intend to use the iPhone in a number of new bundles and service packages to get the consumer metrics back on track. We are exceedingly pleased with the results in managed broadband that is the primary beneficiary of our new TERRA Southwest network.

 
Highlights
·  
GCI repurchased 862,250 shares of its Class A common stock in the first quarter of 2012 at an average price per share of $10.40. GCI is authorized to repurchase more than $88 million of its shares depending on company performance, market conditions, liquidity, and subject to board oversight. At the end of the first quarter of 2012 GCI had approximately 41.6 million shares outstanding.
 
·  
Managed broadband revenues for the first quarter of 2012 totaled $19.0 million, an increase of 36.0 percent over the first quarter of 2011 and 10.6 percent over the fourth quarter of 2011. The strong revenue growth is primarily due to the increase in broadband service capacity resulting from the turn up of the TERRA Southwest terrestrial network.
 
·  
GCI had 122,000 consumer and commercial cable modem customers at the end of the first quarter of 2012, an increase of 2,600 over the 119,400 cable modem customers at the end of the fourth quarter 2011. Average monthly revenue per cable modem for the first quarter of 2012 was $61.48, an increase of 19.6 percent over the $51.39 figure posted for the prior year and an increase of 1.9 percent over the $60.32 figure posted for the fourth quarter of 2011.
 
·  
GCI had 136,900 access lines at the end of the first quarter of 2012, representing an estimated 36 percent share of the total access line market in Alaska. Access lines decreased by 1,200 lines from the fourth quarter of 2011.
 
·  
GCI’s facilities-based access lines totaled 109,500, representing 80.0 percent of its total access lines at the end of the first quarter of 2012. Total facilities-based access lines remained steady compared to the prior quarter primarily due to the continuing effort to transition leased commercial access lines to GCI owned facilities.
 
Consumer
Consumer revenues for the first quarter of 2012 totaled $87.8 million and were relatively unchanged from $88.4 million in the first quarter of 2011 and increased 1.7 percent over the fourth quarter of 2011. Voice and wireless revenues in the first quarter of 2012 were about equally impacted by a decrease in USF support totaling $1.2 million as compared to the first quarter of 2011.
 
Consumer voice revenues of $11.3 million decreased $2.5 million when compared to the prior year quarter and were steady with the fourth quarter of 2011. Consumer local access lines in service at the end of the first quarter of 2012 totaled 76,100, an expected decrease of 9,000 lines from the first quarter of 2011 and 1,500 lines from the fourth quarter of 2011.
 
GCI serves 70,700 consumer access lines on its own facilities, a decrease of 1,300 lines from the fourth quarter of 2011. More than 92 percent of consumer access lines are provisioned exclusively on GCI facilities.
 
Consumer video revenues of $29.0 million decreased 4.3 percent from the first quarter of 2011 and 1.9 percent from the fourth quarter of 2011. The decreases are primarily due to a decrease in basic video subscribers. Consumer basic video subscribers totaled 124,200 at the end of the first quarter of 2012, a decrease of 800 subscribers from the fourth quarter of 2011 and a decrease of 6,000 subscribers from the first quarter of 2011.
 
Consumer data revenues of $20.4 million increased 22.4 percent over the first quarter of 2011 and grew 2.6 percent over the fourth quarter of 2011. 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 3,500 consumer cable modem customers over the first quarter of 2011 and cable modem customer counts increased by 2,400 on a sequential basis.
 
Consumer wireless revenues of $27.1 million decreased 2.0 percent from the first quarter of 2011 and increased 7.0 percent sequentially. Consumer had a decrease of 2,000 wireless customers from the end of the first quarter a year ago and a decrease of 100 wireless customers sequentially.
 
Network Access
Network access revenues of $25.2 million were steady with the first quarter of 2011 and decreased $0.6 million or 2.1 percent from the fourth quarter of 2011.
 
Voice revenues, as expected, decreased 14.0 percent to $5.6 million from the prior year and increased 2.5 percent over the fourth quarter of 2011.
 
Data revenues of $14.4 million decreased $0.6 million from the first quarter of 2011 and were down $1.0 million from the fourth quarter of 2011. The decrease in data revenues is primarily attributable to lower rates.
 
Wireless revenues, primarily related to roaming traffic, increased 44.2 percent over the prior year to $5.3 million and increased 5.6 percent sequentially.
 
Commercial
Commercial revenues increased $2.5 million to $34.3 million as compared to $31.8 million in the first quarter of 2011 and were steady with the fourth quarter of 2011. Voice and wireless revenues in the first quarter were impacted by a small decrease in USF support as compared to the first quarter of 2011.
 
Voice revenues for the first quarter of 2012 decreased $0.5 million from the first quarter of 2011 and increased $0.4 million over the fourth quarter of 2011. Local access lines at the end of the first quarter of 2012 increased by 500 lines sequentially.
 
            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 $10.4 million increased by $1.0 million as compared to the first quarter of 2011 and time and material charges for support activities increased by $1.7 million to $11.5 million for the first quarter of 2012 as a result of increased activity primarily in the oil sector. Commercial data service revenues were $21.8 million in the first quarter of 2012, an increase of $2.7 million over the first quarter of 2011 and a decrease of $0.5 million from the fourth quarter of 2011.
 
Commercial wireless revenues totaled $2.3 million for the first quarter of 2012 and were steady with the prior year and decreased $0.2 million sequentially. GCI had 15,500 commercial wireless subscribers at the end of the first quarter of 2012, an increase of 1,800 subscribers over the prior year and 200 subscribers sequentially.
 
Managed Broadband
Managed Broadband revenues for the first quarter of 2012 totaled $19.0 million, an increase of 36.0 percent over the first quarter of 2011 and 10.6 percent over the fourth quarter of 2011. The strong revenue growth is primarily due to the increase in broadband service capacity resulting from the turn up of the TERRA Southwest terrestrial network.
 
Regulated Operations
Regulated operations revenues totaled $5.5 million in the first quarter of 2012 and were steady with the first quarter of 2011. Regulated operations revenues for the first quarter of 2012 increased 9.8 percent over the fourth quarter of 2011. Regulated operations had 8,900 local access lines at the end of the first quarter of 2012, a decrease of 200 access lines from the fourth quarter of 2011.
 
Other Items
SG&A expenses for the first quarter of 2012 totaled $63.0 million, an increase of 6.9 percent as compared to $58.9 million for the first quarter of 2011. The increase is due in part to increases in health care costs and labor and related benefits, and the noncash value of services contributed to the University of Alaska. As a percentage of revenues, SG&A expenses increased to 36.6 percent in the first quarter of 2012 as compared to 35.7 percent in the prior year.
 
GCI’s first quarter 2012 capital expenditures totaled $26.6 million as compared to $28.3 million in 2011.
 
GCI will hold a conference call to discuss the quarter’s results on Thursday, May 3, 2012 beginning at 2 p.m. (Eastern). To access the briefing on May 3, call the conference operator between 1:50-2:00 p.m. (Eastern Time) at 888-566-7703 (International callers should dial 1-630-395-0020) 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 800-925-0728, access code 7461 (International callers should dial 1-402-998-1627.)
 
GCI is the largest telecommunications company in Alaska. GCI’s cable plant, which provides voice, video, and broadband data services, passes 80 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)
            
   
March 31,
    
December 31,
  
Assets
  
2012
    
2011
  
             
Current assets:
            
  Cash and cash equivalents
   $ 30,018       29,387  
 
                
  Receivables
     150,934       141,827  
  Less allowance for doubtful receivables
     5,011       5,796  
     Net receivables
     145,923       136,031  
 
                
  Deferred income taxes
     15,555       15,555  
  Prepaid expenses
     9,419       7,899  
  Inventories
     9,507       7,522  
  Other current assets
     3,527       3,631  
       Total current assets
     213,949       200,025  
 
                
Property and equipment in service, net of depreciation
     835,832       849,121  
Construction in progress
     51,736       42,918  
       Net property and equipment
     887,568       892,039  
 
                
Cable certificates
     191,635       191,635  
Goodwill
     74,883       74,883  
Wireless licenses
     25,967       25,967  
Restricted Cash
     14,804       15,910  
Other intangible assets, net of amortization
     15,612       15,835  
Deferred loan and senior notes costs, net of amortization
     12,262       12,812  
Other assets
     16,104       17,214  
    Total other assets
     351,267       354,256  
       Total assets
   $ 1,452,784       1,446,320  
                 
           
(Continued)
  

 
 
 

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
            
CONSOLIDATED BALANCE SHEETS
            
(Unaudited)
            
(Continued)
            
             
             
(Amounts in thousands)
            
   
March 31,
    
December 31,
  
Liabilities and Stockholders' Equity
  
2012
    
2011
  
             
Current liabilities:
            
  Current maturities of obligations under long-term debt and capital leases
   $ 9,507       8,797  
  Accounts payable
     37,067       41,353  
  Deferred revenue
     23,181       22,003  
  Accrued payroll and payroll related obligations
     20,285       22,126  
  Accrued interest
     21,366       6,680  
  Accrued liabilities
     14,032       11,423  
  Subscriber deposits
     1,206       1,250  
     Total current liabilities
     126,644       113,632  
 
                
Long-term debt, net
     859,617       858,031  
Obligations under capital leases, excluding current maturities
     77,286       78,605  
Obligation under capital lease due to related party, excluding current maturity
     1,893       1,893  
Deferred income taxes
     115,383       114,234  
Long-term deferred revenue
     81,541       81,822  
Other liabilities
     23,800       24,456  
       Total liabilities
     1,286,164       1,272,673  
 
                
                 
Commitments and contingencies
                
Stockholders’ equity:
                
  Common stock (no par):
                
     Class A. Authorized 100,000 shares; issued 38,648 and 39,296 shares
     at March 31, 2012 and December 31, 2011, respectively; outstanding
     38,455 and 39,043 shares at March 31, 2012 and December 31, 2011,
     respectively
         25,680           26,179  
                 
    Class B. Authorized 10,000 shares; issued and outstanding 3,171
     shares each at March 31, 2012 and December 31, 2011; convertible
     on a share-per-share basis into Class A common stock
        2,678          2,679  
                 
    Less cost of 193 and 253 Class A shares held in treasury at
      March 31, 2012 and December 31, 2011
      (1,706 )      (2,225 )
 
                
  Paid-in capital
     24,497       32,795  
  Retained earnings
     99,340       97,911  
       Total General Communication, Inc. stockholders' equity
     150,489       157,339  
  Non-controlling interest
     16,131       16,308  
       Total stockholders' equity
     166,620       173,647  
       Total liabilities and stockholders' equity
   $ 1,452,784       1,446,320  

 
 
 

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
            
CONSOLIDATED INCOME STATEMENTS
            
  (Unaudited)  
 
        
   
Three Months Ended March 31,
  
             
(Amounts in thousands, except per share amounts)
  
2012
    
2011
  
             
Revenues
   $ 171,907       164,777  
 
                
Cost of goods sold (exclusive of depreciation and amortization shown
  separately below)
     56,860       53,756  
Selling, general and administrative expenses
     62,982       58,893  
Depreciation and amortization expense
     32,380       31,866  
   Operating income
     19,685       20,262  
 
                
Other income (expense):
                
  Interest expense (including amortization of deferred loan fees)
     (17,155 )     (17,452 )
  Interest income
     2       4  
  Other
     (131 )     (24 )
     Other expense, net
     (17,284 )     (17,472 )
                 
   Income before income tax expense
     2,401       2,790  
 
                
Income tax expense
     (1,149 )     (1,391 )
 
                
   Net income
     1,252       1,399  
Net loss attributable to non-controlling interest
     177       -  
                 
   Net income attributable to General Communication, Inc.
   $ 1,429       1,399  
                 
Basic net income attributable to General Communication, Inc.
  common stockholders per Class A common share
   $ 0.03        0.03  
                 
Basic net income attributable to General Communication, Inc.
  common stockholders per Class B common share
   $ 0.03        0.03  
                 
Diluted net income attributable to General Communication, Inc.
  common stockholders per Class A common share
   $ 0.03        0.02  
                 
Diluted net income attributable to General Communication, Inc.
  common stockholders per Class B common share
   $ 0.03        0.02  
                 
Common shares used to calculate Class A basic EPS
     38,741       43,979  
                 
Common shares used to calculate Class A diluted EPS
     42,342       47,747  

 
 
 

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
  
SUPPLEMENTAL SCHEDULES
  
(Unaudited)
  
(Amounts in thousands)
                                                                    
   
First Quarter 2012
    
First Quarter 2011
  
         
Network
          
Managed
    
Regulated
          
Network
          
Managed
    
Regulated
  
   
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
    
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
  
Revenues
                                                                        
  Voice
   $ 11,280       5,564       7,086       -       5,537       29,467     $ 13,752       6,470       7,573       -       5,439       33,234  
  Video
     29,022       -       3,120       -       -       32,142       30,339       -       2,840       -       -       33,179  
  Data
     20,449       14,353       21,837       19,029       -       75,668       16,701       14,972       19,095       13,995       -       64,763  
  Wireless
     27,061       5,271       2,298       -       -       34,630       27,625       3,655       2,321       -       -       33,601  
    Total
     87,812       25,188       34,341       19,029       5,537       171,907       88,417       25,097       31,829       13,995       5,439       164,777  
                                                                                                 
Cost of goods
  sold
     28,618       6,023       15,700       4,889       1,630       56,860       27,308       6,665       14,866       3,914       1,003       53,756  
                                                                                                 
    Contribution
     59,194       19,165       18,641       14,140       3,907       115,047       61,109       18,432       16,963       10,081       4,436       111,021  
                                                                                                 
Less SG&A
     35,832       7,208       10,694       6,271       2,977       62,982       33,375       6,778       10,537       4,467       3,736       58,893  
Less Other
     -       -       -       131       -       131       -       -       -       24       -       24  
    EBITDA
     23,362       11,957       7,947       7,738       930       51,934       27,734       11,654       6,426       5,590       700       52,104  
                                                                                                 
Add share-based
  compensation
     884       279       333       229       5       1,730       619       212       224       115       -       1,170  
Add accretion
     104       33       31       20       -       188       41       13       12       6       -       72  
Add loss from
  noncontrolling interest
     -       -       -       177       -       177       -       -       -       -       -       -  
Add non-cash
  contribution
     444       141       130       85       -       800       -       -       -       -       -       -  
    Adjusted EBITDA
   $ 24,794       12,410       8,441       8,249       935       54,829     $ 28,394       11,879       6,662       5,711       700       53,346  
                                                                                                 
 
 
 
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
                                                                                          
   
First Quarter 2012
      
Fourth Quarter 2011
    
           
Network
            
Managed
    
Regulated
            
Network
            
Managed
    
Regulated
  
   
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
    
Consumer
    
Access
    
Commercial
    
Broadband
    
Operations
    
Totals
  
Revenues
                                                                                                
  Voice
   $ 11,280       5,564       7,086       -       5,537       29,467     $ 11,511       5,429       6,662       -       5,044       28,646  
  Video
     29,022       -       3,120       -       -       32,142       29,595       -       2,999       -       -       32,594  
  Data
     20,449       14,353       21,837       19,029       -       75,668       19,931       15,321       22,308       17,207       -       74,767  
  Wireless
     27,061       5,271       2,298       -       -       34,630       25,299       4,991       2,515       -       -       32,805  
    Total
     87,812       25,188       34,341       19,029       5,537       171,907       86,336       25,741       34,484       17,207       5,044       168,812  
                                                                                                 
Cost of goods
  sold
     28,618       6,023       15,700       4,889       1,630       56,860       27,938       5,972       16,140       3,987       1,628       55,665  
                                                                                                 
    Contribution
     59,194       19,165       18,641       14,140       3,907       115,047       58,398       19,769       18,344       13,220       3,416       113,147  
                                                                                                 
Less SG&A
     35,832       7,208       10,694       6,271       2,977       62,982       36,550       8,189       10,959       5,234       3,546       64,478  
Less Other
     -       -       -       131       -       131       -       -       -       205       -       205  
    EBITDA
     23,362       11,957       7,947       7,738       930       51,934       21,848       11,580       7,385       7,781       (130 )     48,464  
                                                                                                 
Add share-based
  compensation
     884       279       333       229       5       1,730       1,769       646       630       335       16       3,396  
Add accretion
     104       33       31       20       -       188       93       30       27       13       -       163  
Add loss from
   noncontrolling interest
     -       -       -       177       -       177       -       -       -       238       -       238  
Add non-cash
  contribution
     444       141       130       85       -       800       -       -       -       -       -       -  
    Adjusted EBITDA
   $ 24,794       12,410       8,441       8,249       935       54,829     $ 23,710       12,256       8,042       8,367       (114 )     52,261  

 
 
 



GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS
(Unaudited)
                                           
                     
March 31, 2012
    
March 31, 2012
  
                     
as compared to
    
as compared to
  
   
March 31,
    
March 31,
    
December 31,
  
March 31,
    
December 31,
  
March 31,
    
December 31,
  
   
2012
    
2011
    
2011
    
2011
    
2011
    
2011
    
2011
  
Consumer
                                          
Voice
                                          
Total local access lines in service
     76,100       85,100       77,600       (9,000 )     (1,500 )     -10.6 %     -1.9 %
Local access lines in service on GCI facilities
     70,700       78,000       72,000       (7,300 )     (1,300 )     -9.4 %     -1.8 %
                                                         
Video
                                                        
Basic subscribers
     124,200       130,200       125,000       (6,000 )     (800 )     -4.6 %     -0.6 %
Digital programming tier subscribers
     74,600       81,600       75,600       (7,000 )     (1,000 )     -8.6 %     -1.3 %
HD/DVR converter boxes
     90,300       89,300       89,400       1,000       900       1.1 %     1.0 %
Homes passed
     242,200       239,000       242,100       3,200       100       1.3 %     0.0 %
                                                         
Data
                                                        
Cable modem subscribers
     110,700       107,200       108,300       3,500       2,400       3.3 %     2.2 %
                                                         
Wireless
                                                        
Wireless lines in service
     124,500       126,500       124,600       (2,000 )     (100 )     -1.6 %     -0.1 %
                                                         
Commercial
                                                        
Voice
                                                        
Total local access lines in service
     51,900       50,400       51,400       1,500       500       3.0 %     1.0 %
Local access lines in service on GCI facilities
     29,900       26,500       28,700       3,400       1,200       12.8 %     4.2 %
                                                         
Video
                                                        
Hotels and mini-headend
       subscribers
     16,100       15,200       15,700       900       400       5.9 %     2.5 %
Basic subscribers
     1,900       2,000       1,900       (100 )     -       -5.0 %     0.0 %
   Total basic subscribers
     18,000       17,200       17,600       800       400       4.7 %     2.3 %
                                                         
Data
                                                        
Cable modem subscribers
     11,300       10,800       11,100       500       200       4.6 %     1.8 %
                                                         
Wireless
                                                        
Wireless lines in service
     15,500       13,700       15,300       1,800       200       13.1 %     1.3 %
                                                         
Regulated Operations
                                                        
Voice:
                                                        
Total local access lines in service
     8,900       9,800       9,100       (900 )     (200 )     -9.2 %     -2.2 %
                                                         
                                     
                           
March 31, 2012
    
March 31, 2012
  
   
Three Months Ended
            
as Compared to
    
as Compared to
  
   
March 31,
    
March 31,
    
December 31,
  
March 31,
    
December 31,
  
March 31,
    
December 31,
  
      2012       2011       2011       2011       2011       2011       2011  
Consumer
                                                        
Video
                                                        
Average monthly gross revenue per subscriber
   $ 77.72     $ 77.60     $ 78.51     $ 0.12     $ (0.79 )     0.2 %     -1.0 %
                                                         
Wireless
                                                        
Average monthly gross revenue per subscriber
   $ 68.65     $ 69.46     $ 61.40     $ (0.81 )   $ 7.25       -1.2 %     11.8 %
                                                         
Total
                                                        
Voice
                                                        
Long-distance minutes carried
       (in millions)
     238.3       243.4       231.3       (5.1 )     7.0       -2.1 %     3.0 %
                                                         
Data
                                                        
Average monthly gross revenue per cable modem subscriber
   $ 61.48     $ 51.39     $ 60.32     $ 10.09     $ 1.16       19.6 %     1.9 %

 
 
 

General Communication, Inc.
                  
Non-GAAP Financial Reconciliation Schedule
                  
(Unaudited, Amounts in Millions)
                  
                   
                   
   
Three Months Ended
  
   
March 31,
    
March 31,
    
December 31,
  
   
2012
    
2011
    
2011
  
Net income (loss)
   $ 1.3       1.4       (1.2 )
Income tax expense
     1.1       1.4       0.1  
Income (loss) before income tax
   expense
     2.4       2.8       (1.1 )
                         
Other expense:
                        
Interest expense (including amortization of deferred loan fees)
     17.2       17.5       16.9  
Other
     0.1       -       0.2  
Other expense, net
     17.3       17.5       17.1  
                         
Operating income
     19.7       20.3       16.0  
Depreciation and amortization expense
     32.3       31.8       32.7  
Other
     (0.1 )     -       (0.2 )
                         
EBITDA (Note 2)
     51.9       52.1       48.5  
Share-based compensation
     1.7       1.1       3.4  
Accretion
     0.2       0.1       0.2  
Non-controlling interest
     0.2       -       0.2  
Non-cash contribution adjustment
     0.8       -       -  
Adjusted EBITDA (Note 1)
   $ 54.8       53.3       52.3  
                         
                         
                         
                         
                         
Notes:
                        
(1) EBITDA (as defined in Note 2 below) before deducting share-based compensation,
  
accretion expense, loss attributable to non-controlling interest 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.