Exhibit 99.1
 




May 1, 2013

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 2013 FINANCIAL RESULTS

·  
Consolidated revenue of $186.2 million
·  
Adjusted EBITDA of $58.6 million
·  
Net income of $3.2 million or $0.08 per diluted share

ANCHORAGE, AK – General Communication, Inc. (“GCI”) (NASDAQ:GNCMA) today reported its first quarter 2013 results with revenues increasing to $186.2 million over revenues of $171.9 million in the first quarter of 2012, an increase of $14.3 million or 8.3 percent. Adjusted EBITDA increased $3.8 million or 7.0 percent over the first quarter of 2012 EBITDA of $54.8 million.

GCI’s first quarter 2013 net income totaled $3.2 million or earnings per diluted share of $0.08 and compares to net income of $1.4 million or earnings per diluted share of $0.03 for the first quarter of 2012.

First quarter of 2013 revenues increased $2.5 million or 1.4 percent over revenues of $183.7 million in the fourth quarter of 2012. Adjusted EBITDA increased $5.5 million or 10.4 percent over adjusted EBITDA of $53.1 million in the fourth quarter of 2012.

“GCI had a good first quarter,” said Ron Duncan, GCI president. “Typically the first quarter is the slowest one of the year. We are off to a good start and I am pleased with both the customer metrics and financial performance.”

“Yesterday we completed the refinancing of our senior credit facility, taking another step in satisfying the remaining conditions to close the AWN transaction.”
 
        The AWN transaction is expected to close once all requisite regulatory approvals are received. The timing of such closing during the quarter will impact GCI’s 2013 results. GCI will issue guidance on consolidated revenues, EBITDA and AWN’s expected preferred distributions for 2013 after the AWN transaction has been approved and completed.
 
 
Highlights
·  
Managed broadband revenues for the first quarter of 2013 totaled $28.0 million, an increase of $3.5 million or 14.1 percent over the first quarter of 2012 and a decrease of $0.5 million on a sequential basis. The year-over-year growth is due to continuing investment in terrestrial broadband facilities in rural Alaska and success in acquiring additional telemedicine and distance learning customers.

·  
GCI repurchased 764,380 shares of its Class A common stock in the first quarter of 2013 at an average price per share of $8.64. GCI is authorized to repurchase $99.7 million of its shares depending on company performance, market conditions, liquidity, and subject to board oversight. At the end of the first quarter of 2013, GCI had approximately 41.5 million shares outstanding.

·  
GCI received payment of $2.0 million for IRU capacity sold to a large carrier customer in the first quarter of 2013. The IRU sale is treated as deferred revenue and will be recognized into income over the expected life of the capacity.

·  
GCI had 130,400 consumer and commercial cable modem customers at the end of the first quarter of 2013, an increase of 8,400 over the end of the first quarter of 2012 and an increase of 1,500 on a sequential basis. Average monthly revenue per cable modem for the first quarter of 2013 was $66.53, an increase of $5.05 over $61.48 posted for the prior year and $0.76 over $65.77 reported for the fourth quarter of 2012.

·  
On April 30, 2013, GCI Holdings, Inc., a wholly owned subsidiary of GCI, closed on a $390 million senior secured credit facility with Credit Agricole Corporate and Investment Bank, as administrative agent, Union Bank, N.A., as syndication agent, and SunTrust Bank as documentation agent, and as co-lead arrangers and joint book runners. The pro-rata bank facility provides up to $240.0 million of delayed draw term loans and a $150.0 million revolving credit facility. The interest rate under the loan agreement is LIBOR plus a margin of 2 percent to 3 percent dependent upon the total leverage ratio. The facility will mature on April 30, 2018.

·  
In part, in anticipation of closing the AWN transaction, we have changed our segment reporting methodology. Effective the first of this year, we are now organized in two segments, including wireless and wireline. The wireless segment’s revenue is derived from wholesale wireless services, which includes revenue that was previously reported in the historical consumer, network access, and commercial segments. The wireline segment’s revenue is from all of our other services and products and includes three major customer groups: consumer, business services and managed broadband. The consumer customer group includes the historical consumer segment, the business services customer group includes the historical commercial and network access segments, and the managed broadband customer group includes the historical managed broadband and regulated operations segments. The comparative figures for 2012 have been recast to be consistent with the new segment presentation.

Wireless
Wireless revenues of $33.8 million, for the first quarter of 2013, increased $4.4 million or 14.9 percent when compared to the prior year quarter and $1.2 million or 3.5 percent on a sequential basis. The increase is primarily due to increases in roaming revenue and retail non-Lifeline wireless subscribers. GCI served 141,600 wireless subscribers at the end of the first quarter 2013.

GCI served 108,900 postpaid and pre-paid non-Lifeline wireless subscribers at the end of the first quarter of 2013, an increase of 10,300 over the end of the prior year quarter and an increase of 1,300 wireless customers sequentially.

      GCI served 32,700 Lifeline customers at the end of the first quarter of 2013, a decrease of 8,700 when compared to the prior year quarter and an increase of 300 on a sequential basis.

Wireline - Consumer
Consumer revenues of $68.1 million for the first quarter of 2013 increased 2.0 percent over the first quarter of 2012 and were steady with the fourth quarter of 2012. An increase in data and wireless revenues offset the decreases in voice and video revenues when compared to the first quarter of 2012.

Consumer voice revenues of $9.5 million decreased $1.7 million when compared to the prior year quarter and were steady with the fourth quarter of 2012 as customers continue to abandon wireline service and shift to wireless. Consumer local access lines in service at the end of the first quarter of 2013 totaled 68,000, a decrease of 8,100 lines from the first quarter of 2012 and 1,700 lines from the fourth quarter of 2012.

Consumer video revenues of $28.0 million decreased $1.1 million from the first quarter of 2012 and $0.7 million from the fourth quarter of 2012. The decrease is primarily due to a decline in basic video subscribers. Consumer basic video subscribers totaled 122,000 at the end of the first quarter of 2013, a decrease of 2,200 subscribers from the first quarter of 2012 and 300 subscribers from the fourth quarter of 2012. GCI has had a steady increase in the number of customers who subscribe only to cable modem service. These customers may be purchasing video programming from other sources including over-the-top providers such as Netflix and Hulu.

Consumer data revenues of $24.1 million increased $3.6 million or 17.6 percent over the first quarter of 2012 and $0.9 million or 4.1 percent over the fourth quarter of 2012. The increase in consumer data revenues is due to an increase in cable modem customers and increasing monthly usage. GCI added 6,300 consumer cable modem customers over the first quarter of 2012 and cable modem customer counts increased by 1,400 on a sequential basis.

Consumer wireless revenues of $6.5 million increased $0.5 million or 8.3 percent from the first quarter of 2012. Wireless revenues decreased $0.5 million when compared to the fourth quarter of 2012.

Wireline - Business Services
Business services revenues of $56.3 million increased $5.1 million or 10.1 percent over the first quarter of 2012 and $2.2 million or 4.1 percent sequentially.

Voice revenues of $12.3 million were steady with the first quarter of 2012 and increased $0.8 million or 6.7 percent sequentially.

Commercial data service revenues were $40.1 million in the first quarter of 2013, an increase of $5.0 million over the first quarter of 2012 and an increase of $1.7 million over the fourth quarter of 2012. Commercial data service revenues include both transport charges for data circuits, professional services which are time and materials charges for GCI on-site support of customer operations and data center revenues. As summarized in the table below, data transport charges of $23.6 million decreased by $1.2 million as compared to the first quarter of 2012, time and material charges for support activities increased by $6.1 million to $16.2 million and data center revenues increased by $0.1 million over the first quarter of 2012.

Millions $
     Q1 2013       Q1 2012       Q4 2012  
Data Transport Charges
   $ 23.6     $ 24.8     $ 24.3  
Professional Services
     16.2       10.1       13.8  
Data Center Revenues
     0.3       0.2       0.3  
Total Data Revenues
   $ 40.1     $ 35.1     $ 38.4  


Wireline - Managed Broadband
           Managed broadband revenues for the first quarter of 2013 totaled $28.0 million, an increase of $3.5 million or 14.1 percent over the first quarter of 2012 and a decrease of $0.5 million on a sequential basis. The year-over-year growth is due to continuing investment in terrestrial broadband facilities in rural Alaska and success in acquiring additional telemedicine and distance learning customers. GCI will complete the extension of its terrestrial broadband network to Nome by the end of this year and to Kotzebue by the end of 2014. The sequential decrease in revenues is due to fewer product sales in the first quarter of 2013.

Other Items
SG&A expenses for the first quarter of 2013 totaled $64.5 million, an increase of $1.5 million or 2.5 percent as compared to $63.0 million for the first quarter of 2012. The increase is due to labor and related benefits and contract labor related to non-capitalizable network projects for our ConnectMD and SchoolAccess customers. As a percentage of revenues, SG&A expenses decreased to 34.7 percent in the first quarter of 2013 as compared to 36.6 percent in the prior year quarter.

GCI’s first quarter 2013 capital expenditures totaled $29.3 million as compared to $26.6 million in the first quarter of 2012.

GCI will hold a conference call to discuss the quarter’s results on Thursday, May 2, 2013 beginning at 2 p.m. (Eastern). To access the briefing on May 2, call the conference operator between 1:50-2:00 p.m. (Eastern Time) at 800-475-0222 (International callers should dial 1-517-308-9186) 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 800-967-7626, access code 7461 (International callers should dial 1-203-369-3097).

GCI is the largest telecommunications company in Alaska. GCI’s cable plant, which provides broadband data services, video, and voice, passes 78 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 TERRA-Southwest fiber/microwave system links 65 communities in the Bristol Bay and Yukon-Kuskokwim Delta to Anchorage bringing terrestrial broadband Internet access to the region for the first time. 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.

           A pioneer in bundled services, GCI is the top provider of data, video and voice 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 Forms 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
  
2013
    
2012
  
             
Current assets:
            
  Cash and cash equivalents
   $ 30,773       24,491  
 
                
  Receivables
     163,999       150,436  
  Less allowance for doubtful receivables
     2,890       3,215  
     Net receivables
     161,109       147,221  
 
                
  Deferred income taxes
     12,897       12,897  
  Prepaid expenses
     10,720       8,441  
  Inventories
     12,688       12,098  
  Other current assets
     1,162       1,678  
       Total current assets
     229,349       206,826  
 
                
Property and equipment in service, net of depreciation
     855,883       838,247  
Construction in progress
     73,514       94,418  
       Net property and equipment
     929,397       932,665  
 
                
Cable certificates
     191,635       191,635  
Goodwill
     77,294       77,294  
Wireless licenses
     25,967       25,967  
Restricted cash
     26,766       30,933  
Other intangible assets, net of amortization
     15,939       16,560  
Deferred loan and senior notes costs, net of amortization
     10,774       11,189  
Other assets
     13,185       13,453  
    Total other assets
     361,560       367,031  
       Total assets
   $ 1,520,306       1,506,522  
                 
           
(Continued)
  
                 

 
 
 

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
            
CONSOLIDATED BALANCE SHEETS
            
(Unaudited)
            
(Continued)
            
             
             
(Amounts in thousands)
            
   
March 31,
    
December 31,
  
Liabilities and Stockholders' Equity
  
2013
    
2012
  
             
Current liabilities:
            
  Current maturities of obligations under long-term debt and capital leases
   $ 8,092       7,923  
  Accounts payable
     37,868       52,384  
  Deferred revenue
     25,543       25,218  
  Accrued payroll and payroll related obligations
     20,684       19,440  
  Accrued interest
     21,508       6,786  
  Accrued liabilities
     15,288       15,242  
  Subscriber deposits
     1,482       1,366  
     Total current liabilities
     130,465       128,359  
 
                
Long-term debt, net
     885,270       875,123  
Obligations under capital leases, excluding current maturities
     71,143       72,725  
Obligation under capital lease due to related party, excluding
 current maturity
     1,889       1,892  
Deferred income taxes
     126,690       123,661  
Long-term deferred revenue
     91,078       89,815  
Other liabilities
     25,675       25,511  
       Total liabilities
     1,332,210       1,317,086  
 
                
Commitments and contingencies
                
Stockholders’ equity:
                
  Common stock (no par):
                
   Class A. Authorized 100,000 shares; issued 38,396 and 38,534 shares at
      March 31, 2013 and December 31, 2012, respectively; outstanding
      38,297 and 38,357 shares at March 31, 2013 and December 31, 2012,
      respectively
     16,598       22,703  
    Class B. Authorized 10,000 shares; issued and outstanding 3,167 and
      3,169 shares at March 31, 2013 and December 31, 2012, respectively;
      convertible on a share-per-share basis into Class A common stock
     2,675       2,676  
    Less cost of 99 and 177 Class A common shares held in
      treasury at March 31, 2013 and December 31, 2012, respectively
     (906 )     (1,617 )
  Paid-in capital
     26,760       25,832  
  Retained earnings
     110,828       107,584  
       Total General Communication, Inc. stockholders' equity
     155,955       157,178  
  Non-controlling interests
     32,141       32,258  
       Total stockholders' equity
     188,096       189,436  
                 
       Total liabilities and stockholders' equity
   $ 1,520,306       1,506,522  

 
 
 

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
            
CONSOLIDATED INCOME STATEMENTS
            
             
             
   
(Unaudited)
  
   
Three Months Ended
  
   
March 31,
  
(Amounts in thousands, except per share amounts)
  
2013
    
2012
  
             
Revenues
   $ 186,216       171,907  
 
                
Cost of goods sold (exclusive of depreciation and amortization shown
  separately below)
     64,610       56,860  
Selling, general and administrative expenses
     64,547       62,982  
Depreciation and amortization expense
     33,999       32,380  
   Operating income
     23,060       19,685  
 
                
Other expense:
                
  Interest expense (including amortization of deferred loan fees)
     (16,904 )     (17,155 )
  Other
     -       (129 )
   Other expense
     (16,904 )     (17,284 )
                 
   Income before income tax expense
     6,156       2,401  
Income tax expense
     3,029       1,149  
 
                
   Net income
     3,127       1,252  
Net loss attributable to non-controlling interests
     117       177  
                 
   Net income attributable to General Communication, Inc.
   $ 3,244       1,429  
 
                
Basic net income attributable to General Communication, Inc.
  common stockholders per Class A common share
   $ 0.08       0.03  
Basic net income attributable to General Communication, Inc.
  common stockholders per Class B common share
   $ 0.08       0.03  
Diluted net income attributable to General Communication, Inc.
  common stockholders per Class A common share
   $ 0.08       0.03  
Diluted net income attributable to General Communication, Inc.
  common stockholders per Class B common share
   $ 0.08       0.03  
Common shares used to calculate Class A basic EPS
     38,264       38,741  
Common shares used to calculate Class A diluted EPS
     41,695       42,342  

 
 
 


GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
  
SUPPLEMENTAL SCHEDULES
  
(Unaudited)
  
(Amounts in thousands)
                                                                    
   
First Quarter 2013
    
First Quarter 2012
  
         
Wireline Segment
                
Wireline Segment
        
   
Wireless
          
Business
    
Managed
                
Wireless
          
Business
    
Managed
              
   
Segment
    
Consumer
    
Services
    
Broadband
    
Sub-total
    
Total
    
Segment
    
Consumer
    
Services
    
Broadband
    
Sub-total
    
Total
  
Revenues
                                                                        
  Wireless
   $ 33,837       6,546       679       -       7,225       41,062     $ 29,444       6,046       663       -       6,709       36,153  
  Data
     -       24,056       40,136       22,680       86,872       86,872       -       20,449       35,133       19,029       74,611       74,611  
  Video
     -       27,961       3,125       -       31,086       31,086       -       29,022       3,120       -       32,142       32,142  
  Voice
     -       9,530       12,327       5,339       27,196       27,196       -       11,260       12,204       5,537       29,001       29,001  
    Total
     33,837       68,093       56,267       28,019       152,379       186,216       29,444       66,777       51,120       24,566       142,463       171,907  
                                                                                                 
Cost of goods sold
     14,412       20,190       24,536       5,472       50,198       64,610       12,571       18,490       19,280       6,519       44,289       56,860  
                                                                                                 
    Contribution
     19,425       47,903       31,731       22,547       102,181       121,606       16,873       48,287       31,840       18,047       98,174       115,047  
                                                                                                 
Less SG&A
     4,417       31,306       16,083       12,741       60,130       64,547       3,864       33,687       16,593       8,838       59,118       62,982  
Less Other expense
     -       -       -       (4 )     (4 )     (4 )     -       -       -       131       131       131  
    EBITDA
     15,008       16,597       15,648       9,810       42,055       57,063       13,009       14,600       15,247       9,078       38,925       51,934  
                                                                                                 
Add share-based
  compensation
     104       514       407       234       1,155       1,259       -       884       612       234       1,730       1,730  
Add accretion
     77       24       16       10       50       127       64       69       42       13       124       188  
Add loss from
   noncontrolling interests
     -       -       -       200       200       200       -       -       -       177       177       177  
Add non-cash contribution
     -       -       -       -       -       -       -       444       271       85       800       800  
    Adjusted EBITDA
   $ 15,189       17,135       16,071       10,254       43,460       58,649     $ 13,073       15,997       16,172       9,587       41,756       54,829  

 
 
 


GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
  
SUPPLEMENTAL SCHEDULES
  
(Unaudited)
  
(Amounts in thousands)
                                                                    
   
First Quarter 2013
    
Fourth Quarter 2012
  
         
Wireline Segment
                
Wireline Segment
        
   
Wireless
          
Business
    
Managed
                
Wireless
          
Business
    
Managed
              
   
Segment
    
Consumer
    
Services
    
Broadband
    
Sub-total
    
Total
    
Segment
    
Consumer
    
Services
    
Broadband
    
Sub-total
    
Total
  
Revenues
                                                                        
  Wireless
   $ 33,837       6,546       679       -       7,225       41,062     $ 32,679       7,075       739       -       7,814       40,493  
  Data
     -       24,056       40,136       22,680       86,872       86,872       -       23,115       38,407       23,131       84,653       84,653  
  Video
     -       27,961       3,125       -       31,086       31,086       -       28,656       3,343       -       31,999       31,999  
  Voice
     -       9,530       12,327       5,339       27,196       27,196       -       9,613       11,558       5,360       26,531       26,531  
    Total
     33,837       68,093       56,267       28,019       152,379       186,216       32,679       68,459       54,047       28,491       150,997       183,676  
                                                                                                 
Cost of goods sold
     14,412       20,190       24,536       5,472       50,198       64,610       16,933       22,102       22,096       8,683       52,881       69,814  
                                                                                                 
    Contribution
     19,425       47,903       31,731       22,547       102,181       121,606       15,746       46,357       31,951       19,808       98,116       113,862  
                                                                                                 
Less SG&A
     4,417       31,306       16,083       12,741       60,130       64,547       3,878       32,993       16,298       8,821       58,112       61,990  
Less Other expense
     -       -       -       (4 )     (4 )     (4 )     -       -       -       115       115       115  
    EBITDA
     15,008       16,597       15,648       9,810       42,055       57,063       11,868       13,364       15,653       10,872       39,889       51,757  
                                                                                                 
Add share-based
  compensation
     104       514       407       234       1,155       1,259       -       539       386       125       1,050       1,050  
Add accretion
     77       24       16       10       50       127       77       (62 )     (37 )     (11 )     (110 )     (33 )
Add loss from
   noncontrolling interests
     -       -       -       200       200       200       -       -       -       336       336       336  
    Adjusted EBITDA
   $ 15,189       17,135       16,071       10,254       43,460       58,649     $ 11,945       13,841       16,002       11,322       41,165       53,110  

 
 
 


GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
  
KEY PERFORMANCE INDICATORS
  
(Unaudited)
  
                                           
                     
March 31, 2013
    
March 31, 2013
  
                     
as compared to
    
as compared to
  
   
March 31,
    
March 31,
    
December 31,
  
March 31,
    
December 31,
  
March 31,
    
December 31,
  
   
2013
    
2012
    
2012
    
2012
    
2012
    
2012
    
2012
  
Wireless segment
                                          
Lifeline lines in service
     32,700       41,400       32,400       (8,700 )     300       -21.0 %     0.9 %
Non-Lifeline lines in service
     108,900       98,600       107,600       10,300       1,300       10.4 %     1.2 %
Total lines in service
     141,600       140,000       140,000       1,600       1,600       1.1 %     1.1 %
                                                         
Wireline segment
                                                        
Consumer
                                                        
Data
                                                        
Cable modem subscribers
     117,000       110,700       115,600       6,300       1,400       5.7 %     1.2 %
                                                         
Video
                                                        
Basic subscribers
     122,000       124,200       122,300       (2,200 )     (300 )     -1.8 %     -0.2 %
Digital programming tier subscribers
     72,200       74,600       72,500       (2,400 )     (300 )     -3.2 %     -0.4 %
HD/DVR converter boxes
     90,300       90,300       90,400       -       (100 )     0.0 %     -0.1 %
Homes passed
     244,800       242,200       243,600       2,600       1,200       1.1 %     0.5 %
                                                         
Voice
                                                        
Local access lines in service
     68,000       76,100       69,700       (8,100 )     (1,700 )     -10.6 %     -2.4 %
Local access lines in service on GCI facilities
     63,300       70,700       64,900       (7,400 )     (1,600 )     -10.5 %     -2.5 %
                                                         
Business Services
                                                        
Data
                                                        
Cable modem subscribers
     13,400       11,300       13,300       2,100       100       18.6 %     0.8 %
                                                         
Video
                                                        
Hotels and mini-headend
  subscribers
     16,700       16,100       15,800       600       900       3.7 %     5.7 %
Basic subscribers
     1,900       1,900       1,900       -       -       0.0 %     0.0 %
   Total basic subscribers
     18,600       18,000       17,700       600       900       3.3 %     5.1 %
                                                         
Voice
                                                        
Local access lines in service
     50,400       51,900       51,600       (1,500 )     (1,200 )     -2.9 %     -2.3 %
Local access lines in service on GCI facilities
     30,400       29,900       30,800       500       (400 )     1.7 %     -1.3 %
                                                         
Managed Broadband
                                                        
Voice:
                                                        
Local access lines in service
     8,100       8,900       8,300       (800 )     (200 )     -9.0 %     -2.4 %
                                                         
                                     
                           
March 31, 2013
    
March 31, 2013
  
   
Three Months Ended
    
as Compared to
    
as Compared to
  
   
March 31,
    
March 31,
    
December 31,
  
March 31,
    
December 31,
  
March 31,
    
December 31,
  
      2013       2012       2012       2012       2012       2012       2012  
                                                         
Wireless segment
                                                        
Average monthly revenue per
  subscriber
   $ 68.58     $ 66.32     $ 68.21     $ 2.26     $ 0.37       3.4 %     0.5 %
                                                         
Wireline segment
                                                        
Consumer
                                                        
Data
                                                        
Average monthly revenue per
  cable modem subscriber
   $ 66.53     $ 61.48     $ 65.77     $ 5.05     $ 0.76       8.2 %     1.2 %
                                                         
Video
                                                        
Average monthly revenue per
  subscriber
   $ 76.45     $ 77.72     $ 77.99     $ (1.27 )   $ (1.54 )     -1.6 %     -2.0 %
                                                         
Total
                                                        
Voice
                                                        
Long-distance minutes carried
  (in millions)
     228.5       238.3       227.2       (9.8 )     1.3       -4.1 %     0.6 %

 
 
 

General Communication, Inc.
                  
Non-GAAP Financial Reconciliation Schedule
                  
(Unaudited, Amounts in Millions)
                  
                   
                   
   
Three Months Ended
  
   
March 31,
    
March 31,
    
December 31,
  
   
2013
    
2012
    
2012
  
Net income
   $ 3.1       1.3       0.6  
Income tax expense
     3.1       1.1       1.7  
Income before income tax
   expense
     6.2       2.4       2.3  
                         
Other expense:
                        
Interest expense (including
   amortization of deferred
   loan fees)
     16.9       17.2       16.8  
Other
     -       0.1       0.2  
Other expense
     16.9       17.3       17.0  
                         
Operating income
     23.1       19.7       19.3  
Depreciation and amortization expense
     34.0       32.3       32.6  
Equity investment
     -       (0.1 )     (0.1 )
                         
EBITDA (Note 2)
     57.1       51.9       51.8  
Share-based compensation
     1.2       1.7       1.0  
Accretion
     0.1       0.2       -  
Non-controlling interests
     0.2       0.2       0.3  
Non-cash contribution adjustment
     -       0.8       -  
Adjusted EBITDA (Note 1)
   $ 58.6       54.8       53.1  

 
 
 

Notes:
(1) EBITDA (as defined in Note 2 below) before deducting share-based compensation,
accretion expense, and net loss attributable to non-controlling interests 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.