exhibit99-1.htm

Exhibit 99.1

Investor Inquiries: Tom Chesterman, (907) 868-1585, tchesterman@gci.com

Media Inquiries: David Morris, (907) 265-5396, dmorris@gci.com

GCI REPORTS SECOND QUARTER 2013 FINANCIAL RESULTS

·	Consolidated revenue of $189.7 million

·	Adjusted EBITDA of $62.1 million

·	Net income of $4.2 million or $0.10 per diluted share

July 31, 2013, Anchorage AK – General Communication, Inc. (“GCI”) (NASDAQ:GNCMA) today reported its second quarter 2013 results with consolidated revenues of $189.7 million, adjusted EBITDA of $62.1 million, and net income of $4.2 million or $0.10 per diluted share.

For the second quarter of 2013, revenue increased $13.6 million or 8 percent over the second quarter of 2012 revenue of $176.1 million. Adjusted EBITDA increased $2.7 million or 5 percent over the second quarter of 2012 EBITDA of $59.4 million. Net income increased 5 percent compared to second quarter of 2012 net income of $4.0 million.

For the first six months of 2013, revenue increased $27.9 million or 8 percent over the first six months of 2012 revenue of $348.0 million. Adjusted EBITDA increased $6.5 million or 6 percent over the first six months of 2012 EBITDA of $114.3 million. Net income increased $2.0 million or 37 percent over the first six months of 2012 net income of $5.4 million.

“GCI has continued to provide growth and improvement in the second quarter,” said Ron Duncan, GCI president and chief executive officer. “We continue to perform well with respect to both the operational metrics and financial performance.”

On July 22, 2013, the Company closed The Alaska Wireless Network (AWN) transaction, which had been previously announced.

“Having now resolved the many steps in the regulatory process, we are now fully engaged in the implementation process for AWN,” continued Mr. Duncan. “We expect that our AWN network will provide the fastest, most geographically extensive, and the most reasonably priced wireless services for Alaska subscribers.”

Operating Highlights

Wireless:

Wireless revenues of $35.6 million for the second quarter of 2013 increased $5.2 million or 17% when compared to the second quarter of 2012. Wireless Adjusted EBITDA of $14.3 million increased $1.7 million or 13 percent compared to the second quarter of 2012. This segment represents the wholesale provision of wireless service, as well as roaming revenues.

GCI served 142,900 wireless subscribers at the end of the second quarter 2013, representing a total subscriber growth of 1 percent over the second quarter of 2012. The results for the quarter, compared to last year, reflect a 7,300 reduction in Lifeline customers, due to FCC changes in the program. This reduction, however, was offset by a 9,200 or 9 percent increase in non-Lifeline customers, and an overall 6 percent increase to average monthly revenue per wireless subscriber.

Wireline – Consumer:

Consumer revenues of $68.5 million for the second quarter of 2013 increased 1 percent over the same period of 2012. Adjusted EBITDA of $18.9 million for the second quarter of 2013 increased $0.7 million or 4 percent compared to the second quarter of 2012. Increases in data and wireless revenues offset the decreases in voice and video revenues.

During the quarter, the Company announced several improvements, enhancements and new programs:

·	GCI TV Powered by TIVO: GCI provides the only TV service in Alaska that offers a digital video recorder (DVR) through which consumers can record up to six channels simultaneously, in areas where GCI offers TIVO service.

·	GCI GO: GCI was the first Alaska based TV service provider to offer HBO GO and MAX GO, an offering that may expand by year end to as many as 25 networks.

·	Tier 1 Internet expansion: GCI upgraded two additional communities to Tier 1 service, enabling up to 22 mbps internet service.

·	HD Expansion: GCI added two more networks to the HD platform, Lifetime HD and Lifetime Movie Network HD.

Wireline - Business Services:

Business Services revenues of $56.9 million for the second quarter of 2013 increased 12 percent over the same period in 2012. Adjusted EBITDA of $18.2 million represented a 9 percent improvement over the same period in 2012. The revenue improvements were driven by growth in wireline, while wireless showed a slight decline.

During the quarter, revenues benefited from the strength of oil and gas sector exploration, development efforts in Cook Inlet and the Chukchi Sea, as well as continuing contracts with wholesale customers.

Wireline - Managed Broadband:

Managed Broadband revenues for the second quarter of 2013 totaled $28.8 million, an increase of 6 percent over the second quarter of 2012. Adjusted EBITDA of $10.8 million represented a 9 percent decline over the same period in 2012. The year-over-year growth of revenue is due to continuing investment in terrestrial broadband facilities in rural Alaska and success in acquiring additional telemedicine and distance learning customers. These revenue gains have not yet translated into EBITDA gains, due to the continued high cost of developing new services and providing existing services in this area.

During the quarter, the Company announced that GCI will complete the extension of its terrestrial broadband network, TERRA, to Nome by the end of this year and to Kotzebue by the end of 2014.

Corporate Highlights

On April 30, 2013, GCI Holdings, Inc., a wholly owned subsidiary of GCI, closed on a $390 million senior secured credit facility, which was an amendment to its previous facility. The facility provides up to $240.0 million of delayed draw term loans and a $150.0 million revolving credit facility. To complete the AWN transaction mentioned above, subsequent to the quarter close, the Company drew $100 million from the term loan capacity. The facility will mature on April 30, 2018.

GCI repurchased nearly 740,000 shares of its Class A common stock in the second quarter of 2013 at an average price per share of $8.59. GCI is authorized to repurchase $98.4 million of its shares depending on company performance, market conditions, liquidity, leverage and subject to board oversight. At the end of the second quarter of 2013 GCI had approximately 40.8 million Class A and B shares outstanding.

SG&A expenses for the second quarter of 2013 totaled $63.9 million, an increase of $3.8 million or 6 percent as compared to $60.0 million for the second quarter of 2012. As a percentage of revenues, SG&A expenses remained at 34 percent in the second quarter of 2013, compared with the same period in 2012.

·	GCI’s second quarter 2013 capital expenditures totaled $50.4 million.

·	In anticipation of implementing the AWN transaction, we have changed our segment reporting methodology. Effective the first of this year, we are now organized in two segments, Wireless and Wireline.

o	The Wireless segment’s revenue is derived from wholesale wireless services and roaming revenue, which includes revenue that was previously reported in the historical Consumer, Network Access, and Commercial segments.

The Wireline segment’s revenue represents all of our other services and products, including retail wireless, and includes three major customer groups: Consumer, Business Services and Managed Broadband. The comparative figures for 2012 have been recast to be consistent with the new segment presentation.

GCI will hold a conference call to discuss the quarter’s results on Thursday, August 1, 2013 beginning at 2 p.m. (Eastern). To access the briefing, call the conference operator between 1:50-2:00 p.m. (Eastern Time) at 888-989-7597 (International callers should dial 1-517-308-9016) and identify your call as “GCI.” In addition to the dial-up access, 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 888-566-0408, access code 7461 (International callers should dial 1-402-998-0597.)

About GCI

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.

Forward Looking Statement Disclosure

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)
	June 30,		December 31,
Assets	2013		2012

Current assets:
Cash and cash equivalents	$	26,212		24,491

Receivables		167,465		150,436
Less allowance for doubtful receivables		2,810		3,215
Net receivables		164,655		147,221

Deferred income taxes		33,862		12,897
Prepaid expenses		10,929		8,441
Inventories		8,765		12,098
Other current assets		493		1,678
Total current assets		244,916		206,826

Property and equipment in service, net of depreciation		841,932		838,247
Construction in progress		104,897		94,418
Net property and equipment		946,829		932,665

Cable certificates		191,635		191,635
Goodwill		77,294		77,294
Wireless licenses		25,967		25,967
Restricted cash		20,151		30,933
Other intangible assets, net of amortization		15,721		16,560
Deferred loan and senior notes costs, net of amortization		13,181		11,189
Other assets		14,293		13,453
Total other assets		358,242		367,031
Total assets	$	1,549,987		1,506,522

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


(Amounts in thousands)
	June 30,			December 31,
Liabilities and Stockholders' Equity	2013			2012

Current liabilities:
Current maturities of obligations under long-term debt and capital leases	$	8,120			7,923
Accounts payable		44,663			52,384
Deferred revenue		25,425			25,218
Accrued payroll and payroll related obligations		23,270			19,440
Accrued interest		6,761			6,786
Accrued liabilities		17,502			15,242
Subscriber deposits		1,499			1,366
Total current liabilities		127,240			128,359

Long-term debt, net		896,123			875,123
Obligations under capital leases, excluding current maturities		69,545			72,725
Obligation under capital lease due to related party, excluding current maturity		1,887			1,892
Deferred income taxes		151,814			123,661
Long-term deferred revenue		89,886			89,815
Other liabilities		25,899			25,511
Total liabilities		1,362,394			1,317,086

Commitments and contingencies
Stockholders’ equity:
Common stock (no par):
Class A. Authorized 100,000 shares; issued 37,694 and 38,534 shares at June 30, 2013 and December 31, 2012, respectively; outstanding 37,604 and 38,357 shares at June 30, 2013 and December 31, 2012, respectively		10,832			22,703
Class B. Authorized 10,000 shares; issued and outstanding 3,167 and 3,169 shares at June 30, 2013 and December 31, 2012, respectively; convertible on a share-per-share basis into Class A common stock		2,674			2,676
Less cost of 90 and 177 Class A common shares held in treasury at June 30, 2013 and December 31, 2012, respectively		(866	)		(1,617	)
Paid-in capital		27,921			25,832
Retained earnings		115,008			107,584
Total General Communication, Inc. stockholders' equity		155,569			157,178
Non-controlling interests		32,024			32,258
Total stockholders' equity		187,593			189,436

Total liabilities and stockholders' equity	$	1,549,987			1,506,522

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


	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Amounts in thousands, except per share amounts)	2013			2012			2013			2012

Revenues	$	189,661			176,104		$	375,877			348,011

Cost of goods sold (exclusive of depreciation and amortization shown separately below)		65,699			58,073			130,309			114,933
Selling, general and administrative expenses		63,871			60,048			128,418			123,030
Depreciation and amortization expense		34,396			33,350			68,395			65,730
Operating income		25,695			24,633			48,755			44,318

Other expense:
Interest expense (including amortization of deferred loan fees)		(17,424	)		(16,948	)		(34,328	)		(34,103	)
Loss on extinguishment of debt		(103	)		-			(103	)		-
Other		53			88			53			(41	)
Other expense		(17,474	)		(16,860	)		(34,378	)		(34,144	)

Income before income tax expense		8,221			7,773			14,377			10,174
Income tax expense		4,158			3,968			7,187			5,117

Net income		4,063			3,805			7,190			5,057
Net loss attributable to non-controlling interests		117			177			234			354

Net income attributable to General Communication, Inc.	$	4,180			3,982		$	7,424			5,411

Basic net income attributable to General Communication, Inc. common stockholders per Class A common share	$	0.10			0.10		$	0.18			0.13
Basic net income attributable to General Communication, Inc. common stockholders per Class B common share	$	0.10			0.10		$	0.18			0.13
Diluted net income attributable to General Communication, Inc. common stockholders per Class A common share	$	0.10			0.09		$	0.18			0.13
Diluted net income attributable to General Communication, Inc. common stockholders per Class B common share	$	0.10			0.09		$	0.18			0.13
Common shares used to calculate Class A basic EPS		37,979			38,516			38,126			38,629
Common shares used to calculate Class A diluted EPS		41,365			42,149			41,553			42,230

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
	Second Quarter 2013																Second 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	$	35,559			7,180		764		-			7,944			43,503		$	30,360		6,847		791		-			7,638			37,998
Data		-			24,413		39,394		23,370			87,177			87,177			-		21,523		34,308		21,717			77,548			77,548
Video		-			27,740		3,467		-			31,207			31,207			-		29,235		3,236		-			32,471			32,471
Voice		-			9,141		13,253		5,380			27,774			27,774			-		10,399		12,279		5,409			28,087			28,087
Total		35,559			68,474		56,878		28,750			154,102			189,661			30,360		68,004		50,614		27,126			145,744			176,104

Cost of goods sold		16,573			19,437		23,541		6,148			49,126			65,699			13,970		19,309		18,996		5,798			44,103			58,073

Contribution		18,986			49,037		33,337		22,602			104,976			123,962			16,390		48,695		31,618		21,328			101,641			118,031

Less SG&A		4,652			30,997		15,799		12,423			59,219			63,871			3,864		31,075		15,263		9,846			56,184			60,048
Less other expense		-			-		-		(49	)		(49	)		(49	)		-		-		-		(84	)		(84	)		(84	)
EBITDA		14,334			18,040		17,538		10,228			45,806			60,140			12,526		17,620		16,355		11,566			45,541			58,067

Add share-based compensation		(104	)		779		596		376			1,751			1,647			-		413		310		142			865			865
Add accretion		43			53		36		23			112			155			64		44		29		15			88			152
Add loss from noncontrolling interests		-			-		-		197			197			197			-		-		-		177			177			177
Add non-cash contribution		-			-		-		-			-			-			-		82		51		27			160			160
Adjusted EBITDA	$	14,273			18,872		18,170		10,824			47,866			62,139		$	12,590		18,159		16,745		11,927			46,831			59,421

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
	Second Quarter 2013																First Quarter 2013
				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	$	35,559			7,180		764		-			7,944			43,503		$	33,837		6,546		679		-			7,225			41,062
Data		-			24,413		39,394		23,370			87,177			87,177			-		24,056		40,136		22,680			86,872			86,872
Video		-			27,740		3,467		-			31,207			31,207			-		27,961		3,125		-			31,086			31,086
Voice		-			9,141		13,253		5,380			27,774			27,774			-		9,530		12,327		5,339			27,196			27,196
Total		35,559			68,474		56,878		28,750			154,102			189,661			33,837		68,093		56,267		28,019			152,379			186,216

Cost of goods sold		16,573			19,437		23,541		6,148			49,126			65,699			14,412		20,190		24,536		5,472			50,198			64,610

Contribution		18,986			49,037		33,337		22,602			104,976			123,962			19,425		47,903		31,731		22,547			102,181			121,606

Less SG&A		4,652			30,997		15,799		12,423			59,219			63,871			4,417		31,306		16,083		12,741			60,130			64,547
Less other expense		-			-		-		(49	)		(49	)		(49	)		-		-		-		(4	)		(4	)		(4	)
EBITDA		14,334			18,040		17,538		10,228			45,806			60,140			15,008		16,597		15,648		9,810			42,055			57,063

Add share-based compensation		(104	)		779		596		376			1,751			1,647			104		514		407		234			1,155			1,259
Add accretion		43			53		36		23			112			155			77		24		16		10			50			127
Add loss from noncontrolling interests		-			-		-		197			197			197			-		-		-		200			200			200
Adjusted EBITDA	$	14,273			18,872		18,170		10,824			47,866			62,139		$	15,189		17,135		16,071		10,254			43,460			58,649

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
	Six Months Ended June 30, 2013															Six Months Ended June 30, 2012
			Wireline Segment															Wireline Segment
	Wireless				Business		Managed									Wireless				Business		Managed
	Segment		Consumer		Services		Broadband			Sub-total			Totals			Segment		Consumer		Services		Broadband		Sub-total		Totals
Revenues
Wireless	$	69,396		13,726		1,443		-			15,169			84,565		$	59,804		12,893		1,454		-		14,347		74,151
Data		-		48,469		79,530		46,050			174,049			174,049			-		41,972		69,441		40,746		152,159		152,159
Video		-		55,701		6,592		-			62,293			62,293			-		58,257		6,356		-		64,613		64,613
Voice		-		18,671		25,580		10,719			54,970			54,970			-		21,659		24,483		10,946		57,088		57,088
Total		69,396		136,567		113,145		56,769			306,481			375,877			59,804		134,781		101,734		51,692		288,207		348,011

Cost of goods sold		30,985		39,627		48,077		11,620			99,324			130,309			26,541		37,799		38,276		12,317		88,392		114,933

Contribution		38,411		96,940		65,068		45,149			207,157			245,568			33,263		96,982		63,458		39,375		199,815		233,078

Less SG&A		9,069		62,303		31,882		25,164			119,349			128,418			7,728		64,762		31,856		18,684		115,302		123,030
Less other expense		-		-		-		(53	)		(53	)		(53	)		-		-		-		47		47		47
EBITDA		29,342		34,637		33,186		20,038			87,861			117,203			25,535		32,220		31,602		20,644		84,466		110,001

Add share-based compensation		-		1,293		1,003		610			2,906			2,906			-		1,236		895		464		2,595		2,595
Add accretion		120		77		52		33			162			282			128		107		69		36		212		340
Add loss from noncontrolling interests		-		-		-		397			397			397			-		-		-		354		354		354
Add non-cash contribution		-		-		-		-			-			-			-		491		306		163		960		960
Adjusted EBITDA	$	29,462		36,007		34,241		21,078			91,326			120,788		$	25,663		34,054		32,872		21,661		88,587		114,250

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

							June 30, 2013						June 30, 2013
							as compared to						as compared to
	June 30,		June 30,		March 31,		June 30,			March 31,			June 30,			March 31,
	2013		2012		2013		2012			2013			2012			2013
Wireline segment
Consumer
Data
Cable modem subscribers		115,600		111,700		117,000		3,900			(1,400	)		3.5	%		-1.2	%

Video
Basic subscribers		119,600		122,500		122,000		(2,900	)		(2,400	)		-2.4	%		-2.0	%
Digital programming tier subscribers		69,500		72,200		72,200		(2,700	)		(2,700	)		-3.7	%		-3.7	%
HD/DVR converter boxes		89,900		88,400		90,300		1,500			(400	)		1.7	%		-0.4	%
Homes passed		245,100		242,400		244,800		2,700			300			1.1	%		0.1	%

Voice
Local access lines in service		65,200		74,400		68,000		(9,200	)		(2,800	)		-12.4	%		-4.1	%
Local access lines in service on GCI facilities		60,800		69,300		63,300		(8,500	)		(2,500	)		-12.3	%		-3.9	%

Business Services
Data
Cable modem subscribers		14,100		11,800		13,400		2,300			700			19.5	%		5.2	%

Video
Hotels and mini-headend subscribers		20,800		19,300		16,700		1,500			4,100			7.8	%		24.6	%
Basic subscribers		2,000		1,900		1,900		100			100			5.3	%		5.3	%
Total basic subscribers		22,800		21,200		18,600		1,600			4,200			7.5	%		22.6	%

Voice
Local access lines in service		50,500		51,800		50,400		(1,300	)		100			-2.5	%		0.2	%
Local access lines in service on GCI facilities		35,600		30,200		30,400		5,400			5,200			17.9	%		17.1	%

Managed Broadband
Voice:
Local access lines in service		8,100		8,700		8,100		(600	)		-			-6.9	%		0.0	%

Consumer and Business Services Combined
Wireless
Consumer Lifeline lines in service		32,600		39,900		32,700		(7,300	)		(100	)		-18.3	%		-0.3	%
Consumer Non-Lifeline lines in service		92,800		84,900		91,800		7,900			1,000			9.3	%		1.1	%
Business Services Non-Lifeline lines in service		17,500		16,200		17,100		1,300			400			8.0	%		2.3	%
Total wireless lines in service		142,900		141,000		141,600		1,900			1,300			1.3	%		0.9	%

							June 30, 2013						June 30, 2013
	Three Months Ended						as Compared to						as Compared to
	June 30,		June 30,		March 31,		June 30,			March 31,			June 30,			March 31,
	2013		2012		2013		2012			2013			2012			2013

Wireline segment
Consumer
Data
Average monthly revenue per cable modem subscriber	$	68.25	$	63.64	$	66.53	$	4.61		$	1.72			7.2	%		2.6	%

Video
Average monthly revenue per subscriber	$	76.47	$	78.89	$	76.45	$	(2.42	)	$	0.02			-3.1	%		0.0	%

Combined Consumer and Business Services
Wireless
Average monthly revenue per subscriber	$	49.99	$	47.29	$	49.27	$	2.70		$	0.72			5.7	%		1.5	%

Total
Voice
Long-distance minutes carried (in millions)		238.0		241.3		228.5		(3.3	)		9.5			-1.4	%		4.2	%

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


	Three Months Ended								Six Months Ended
	June 30,			June 30,			March 31,		June 30,			June 30,
	2013			2012			2013		2013			2012
Net income	$	4.1			3.8			3.1		7.2			5.1
Income tax expense		4.1			4.0			3.1		7.2			5.1
Income before income tax expense		8.2			7.8			6.2		14.4			10.2

Other expense:
Interest expense (including amortization of deferred loan fees)		17.4			16.9			16.9		34.3			34.1
Loss on extinguisment of debt		0.2			-			-		0.2			-
Other		(0.1	)		(0.1	)		-		(0.1	)		-
Other expense		17.5			16.8			16.9		34.4			34.1

Operating income		25.7			24.6			23.1		48.8			44.3
Depreciation and amortization expense		34.4			33.5			34.0		68.4			65.7
Equity investment		-			-			-		-			-

EBITDA (Note 2)		60.1			58.1			57.1		117.2			110.0
Share-based compensation		1.6			0.9			1.2		2.9			2.6
Accretion		0.2			0.1			0.1		0.3			0.3
Non-controlling interests		0.2			0.2			0.2		0.4			0.4
Non-cash contribution adjustment		-			0.1			-		-			1.0
Adjusted EBITDA (Note 1)	$	62.1			59.4			58.6		120.8			114.3




Notes:
(1) EBITDA (as defined in Note 2 below) before deducting share-based compensation, accretion expense, and net income or 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.