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 THIRD QUARTER 2013 FINANCIAL RESULTS

•
Consolidated revenue of $220 million
•
Adjusted EBITDA of $79 million
•
Net income of $9 million or $0.22 per diluted share

November 6, 2013, Anchorage AK – General Communication, Inc. (“GCI”) (NASDAQ:GNCMA) today reported its third quarter 2013 results with consolidated revenues of $220 million, an adjusted EBITDA of $79 million, and net income of $9 million or $0.22 per diluted share. These results reflect the consolidation of the Alaska Wireless Network (“AWN”) transaction, which was effective July 23, 2013.

For the third quarter of 2013, revenue increased $42 million or 23 percent over the third quarter of 2012 revenue of $178 million. Adjusted EBITDA increased $19 million or 32 percent over the third quarter of 2012 EBITDA of $59 million. Net income increased 141 percent compared to third quarter of 2012 net income of $4 million.

For the first nine months of 2013, revenue increased to $596 million, an increase of $70 million or 13 percent over the first nine months of 2012 revenue of $527 million. Adjusted EBITDA increased to $200 million, an increase of $26 million or 15 percent over the first nine months of 2012 EBITDA of $174 million. Net income increased to $16 million, an increase of $7 million or 79 percent over the first nine months of 2012 net income of $9 million.
    
“We are very happy to have the AWN transaction closed, and even happier to have the consolidated wireless results reflected in a portion of our third quarter results,” said Ron Duncan, GCI president and chief executive officer. “We are pleased with the progress we have made this year. The year is going well and we expect to continue well in the fourth quarter and into next year.”

Operating Highlights

Wireless:
As mentioned above and previously announced, the AWN transaction closed on July 22nd, and was effective on July 23rd. This transaction combined the wireless networks of GCI and Alaska Communications (“ACS”). At this point, AWN provides wholesale wireless services to AWN’s owners, GCI and ACS, as well as roaming and backhaul service to other wireless carriers. This quarter’s results include a partial quarter of AWN’s operations as of the effective date.

Wireless revenues of $68 million for the third quarter of 2013 increased $36 million when compared to the third quarter of 2012. Wireless Adjusted EBITDA of $37 million increased $24 million compared to the third quarter of 2012.

With a partial quarter of AWN for the third quarter 2013, and with the second quarter 2013 and the third quarter 2012 results representing only GCI’s wireless business, the revenue detail is as follows:

($ millions)
3Q 2013
3Q 2012
2Q 2013
Wholesale Wireless
$24
$14
$15
Roaming and Backhaul
$31
$10
$13
USF Support
$13
$8
$8
Total Wireless Revenue
$68
$32
$36




Investor Inquiries: Tom Chesterman, (907) 868-1585, tchesterman@gci.com
Media Inquiries: David Morris, (907) 265-5396, dmorris@gci.com

During the quarter, the company implemented many enhancements and improvements to the network, including:
•
Initiating 4G LTE service in Juneau, expanding LTE service in Anchorage, and improving service in Dillingham and the Mat-Su Valley. 4G LTE is expected to launch in Fairbanks by the end of the year.
•
Expanding Turbozone wireless service to 1,205 venues, representing the most extensive wi-fi network coverage in Alaska and offering up to 50 Mbps speed.

Wireline – Consumer:
Consumer revenues of $69 million for the third quarter of 2013 increased 4 percent over the same period of 2012. Adjusted EBITDA of $17 million for the third quarter of 2013 increased 5 percent compared to the third quarter of 2012. Increases in data and wireless revenues, especially with respect to average revenue per subscriber, offset the decreases in voice and video revenues.

During the quarter, the Company announced several campaigns and new programs:
•
Special marketing campaigns capitalizing on the expansion of the LTE wireless service.
•
Special marketing campaigns capitalizing on the expansion and improvement of Turbozone wireless service and speed.
•
Introduction of the SimplyShare plans for the national and Alaska markets.
•
Launch of TiVo service in five new markets.
•
Addition of four new HD networks to GCI TV offerings.
•
Expansion of GCI GO with ten new networks available for viewing on mobile devices.

Wireline - Business Services:
Business Services revenues of $54 million for the third quarter of 2013 increased 3 percent over the same period in 2012. Adjusted EBITDA was $16 million, which represented an 11 percent decline from the third quarter of 2012. The year over year revenue improvements were driven by growth in data, wireless and video, which grew 9 percent, 14 percent and 18 percent respectively.

The Data revenue results can better be understood by examining the components of the category:

($ millions)
3Q 2013
3Q 2012
2Q 2013
 
Data Transport & Storage Charges
$27
$25
$24
 
Professional Services
$12
$11
$15
 
Total Data Revenue
$39
$36
$39
 

During the quarter, revenues benefited from the strength of oil and gas sector activity, which has increased significantly in recent quarters. However, the EBITDA decline was also driven by these recent projects, initially lower margin Professional Services initiatives, as well as by increased SG&A allocations for the quarter and year to date.
    
Wireline - Managed Broadband:    
Managed Broadband revenues for the third quarter of 2013 totaled $30 million, an increase of 6 percent over the third quarter of 2012. Adjusted EBITDA for the quarter was $8 million, which represented a 30 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. The decline in EBITDA is due to ongoing development project expenses, increased expenses in the regulated business, and an increased allocation of corporate SG&A.

On November 5th, GCI completed another phase of its terrestrial broadband network, TERRA, with full service extending to Nome. GCI expects to complete the next phase, to Kotzebue, by the end of 2014.




Investor Inquiries: Tom Chesterman, (907) 868-1585, tchesterman@gci.com
Media Inquiries: David Morris, (907) 265-5396, dmorris@gci.com

Corporate Highlights

•
On November 1, the company announced the closing of the Denali Media Holdings purchase of an Anchorage CBS affiliate and two Southeast Alaska NBC affiliates.
•
GCI repurchased 242,000 shares of its Class A common stock in the third quarter of 2013 at a cost of $2 million. GCI is authorized to repurchase $101 million of its shares depending on company performance, market conditions, liquidity, leverage and subject to board oversight. At the end of the third quarter of 2013 GCI had approximately 41 million Class A and B shares outstanding.

•
SG&A expenses for the third quarter of 2013 totaled $70 million, an increase of $11 million compared to the third quarter of 2012. This increase reflects, among other items, an increase in labor costs and an increase in success-based incentive compensation. As a percentage of revenues, SG&A expenses for the quarter declined to 32 percent from 33 percent for the same period in 2012.

•
GCI’s year to date 2013 capital expenditures totaled $131 million as compared to $112 million for the first nine months of 2012.

GCI will hold a conference call to discuss the quarter’s results on Thursday, November 7, 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 800-988-0202 (International callers should dial 1-212-547-0478) 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 866-483-9044, access code 7461 (International callers should dial 1-203-369-1586.)

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 fiber/microwave system links 68 communities from Nome through the Yukon-Kuskokwim Delta and Bristol Bay 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)
 
 
 
 
September 30,
 
December 31,
ASSETS
2013
 
2012
Current assets:
 
 
 
Cash and cash equivalents
$
57,933

 
24,491

 
 
 
 
Receivables
202,287

 
150,436

Less allowance for doubtful receivables
2,842

 
3,215

Net receivables
199,445

 
147,221

 
 
 
 
Deferred income taxes
42,800

 
12,897

Prepaid expenses
12,413

 
8,441

Inventories
8,880

 
12,098

Other current assets
299

 
1,678

Total current assets
321,770

 
206,826

 
 
 
 
Property and equipment in service, net of depreciation
919,260

 
838,247

Construction in progress
125,473

 
94,418

Net property and equipment
1,044,733

 
932,665

 
 
 
 
Cable certificates
191,635

 
191,635

Goodwill
215,384

 
77,294

Wireless licenses
91,567

 
25,967

Restricted cash
11,912

 
30,933

Other intangible assets, net of amortization
15,915

 
16,560

Deferred loan and senior notes costs, net of amortization
12,654

 
11,189

Other assets
87,877

 
13,453

Total other assets
626,944

 
367,031

Total assets
$
1,993,447

 
1,506,522

 
 
 
 



GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Continued)
(Amounts in thousands)
 
 
 
 
September 30,
 
December 31,
LIABILITIES AND STOCKHOLDERS’ EQUITY
2013
 
2012
Current liabilities:
 
 
 
  Current maturities of obligations under long-term debt and
    capital leases
$
8,088

 
7,923

Accounts payable
56,127

 
52,384

Deferred revenue
26,230

 
25,218

Accrued payroll and payroll related obligations
26,781

 
19,440

Accrued interest
21,758

 
6,786

Accrued liabilities
15,880

 
15,242

Subscriber deposits
1,344

 
1,366

Total current liabilities
156,208

 
128,359

 
 
 
 
Long-term debt, net
1,012,867

 
875,123

Obligations under capital leases, excluding current maturities
67,918

 
72,725

Obligation under capital lease due to related party, excluding
  current maturity
1,885

 
1,892

Deferred income taxes
161,722

 
123,661

Long-term deferred revenue
91,074

 
89,815

Other liabilities
32,118

 
25,511

Total liabilities
1,523,792

 
1,317,086

 
 
 
 
Commitments and contingencies
 
 
 
Stockholders’ equity:
 

 
 

Common stock (no par):
 

 
 

Class A. Authorized 100,000 shares; issued 37,443 and 38,534 shares at September 30, 2013 and December 31, 2012, respectively; outstanding 37,353 and 38,357 shares at September 30, 2013 and December 31, 2012, respectively
8,525

 
22,703

Class B. Authorized 10,000 shares; issued and outstanding 3,166 and 3,169 shares at September 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 September 30, 2013 and December 31, 2012, respectively
(866
)
 
(1,617
)
Paid-in capital
29,591

 
25,832

Retained earnings
123,913

 
107,584

Total General Communication, Inc. stockholders' equity
163,837

 
157,178

Non-controlling interests
305,818

 
32,258

Total stockholders’ equity
469,655

 
189,436

Total liabilities and stockholders’ equity
$
1,993,447

 
1,506,522




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)
2013
 
2012
 
2013
 
2012
Revenues
$
220,427

 
178,494

 
596,304

 
526,505

Cost of goods sold (exclusive of depreciation and amortization shown separately below)
74,730

 
62,754

 
205,039

 
177,687

Selling, general and administrative expenses
69,547

 
58,228

 
197,965

 
181,258

Depreciation and amortization expense
37,466

 
32,120

 
105,861

 
97,850

Operating income
38,684

 
25,392

 
87,439

 
69,710

 
 
 
 
 
 
 
 
Other expense:
 

 
 

 
 

 
 

Interest expense (including amortization of
  deferred loan fees)
(17,522
)
 
(16,765
)
 
(51,850
)
 
(50,868
)
Loss on extinguishment of debt
—

 
—

 
(103
)
 
—

Other
(180
)
 
166

 
(127
)
 
125

Other expense
(17,702
)
 
(16,599
)
 
(52,080
)
 
(50,743
)
Income before income tax expense
20,982

 
8,793

 
35,359

 
18,967

Income tax expense
(970
)
 
(5,270
)
 
(8,157
)
 
(10,387
)
Net income
20,012

 
3,523

 
27,202

 
8,580

Net income (loss) attributable to non-controlling interests
11,107

 
(177
)
 
10,873

 
(531
)
  Net income attributable to General
   Communication, Inc.
$
8,905

 
3,700

 
16,329

 
9,111

Basic net income attributable to General Communication, Inc. common stockholders per Class A common share
$
0.22

 
0.09

 
0.40

 
0.22

Basic net income attributable to General Communication, Inc. common stockholders per Class B common share
$
0.22

 
0.09

 
0.40

 
0.22

Diluted net income attributable to General Communication, Inc. common stockholders per Class A common share
$
0.22

 
0.09

 
0.39

 
0.22

Diluted net income attributable to General Communication, Inc. common stockholders per Class B common share
$
0.22

 
0.09

 
0.39

 
0.22

Common shares used to calculate Class A basic EPS
37,434

 
38,600

 
37,887

 
38,614

Common shares used to calculate Class A diluted EPS
40,776

 
42,000

 
41,319

 
42,177





GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Third Quarter 2013
 
Third 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
$
68,097

7,581

785

—

8,366

76,463

 
$
32,262

6,448

688

—

7,136

39,398

  Data
—

24,981

39,229

24,544

88,754

88,754

 
—

21,379

36,060

22,685

80,124

80,124

  Video
—

27,674

3,705

—

31,379

31,379

 
—

28,394

3,142

—

31,536

31,536

  Voice
—

8,647

9,952

5,232

23,831

23,831

 
—

9,896

12,221

5,319

27,436

27,436

    Total
68,097

68,883

53,671

29,776

152,330

220,427

 
32,262

66,117

52,111

28,004

146,232

178,494

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of goods sold
26,815

18,648

21,041

8,226

47,915

74,730

 
15,263

20,593

19,972

6,926

47,491

62,754

 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Contribution
41,282

50,235

32,630

21,550

104,415

145,697

 
16,999

45,524

32,139

21,078

98,741

115,740

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less SG&A
4,702

34,273

17,025

13,547

64,845

69,547

 
3,869

30,352

14,335

9,672

54,359

58,228

Less other expense
—

27

18

150

195

195

 
—

—

—

(164
)
(164
)
(164
)
    EBITDA
36,580

15,935

15,587

7,853

39,375

75,955

 
13,130

15,172

17,804

11,570

44,546

57,676

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Add share-based compensation
—

790

652

381

1,823

1,823

 
—

674

487

234

1,395

1,395

Add accretion
117

29

20

12

61

178

 
64

70

44

23

137

201

Add other expense
—

—

—

198

198

198

 
—

—

—

177

177

177

Add facility rights-to-use
563

—

—

—

—

563

 
—

—

—

—

—

—

    Adjusted EBITDA
$
37,260

16,754

16,259

8,444

41,457

78,717

 
$
13,194

15,916

18,335

12,004

46,255

59,449




GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Third 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
$
68,097

7,581

785

—

8,366

76,463

 
$
35,559

7,180

764

—

7,944

43,503

  Data
—

24,981

39,229

24,544

88,754

88,754

 
—

24,413

39,394

23,370

87,177

87,177

  Video
—

27,674

3,705

—

31,379

31,379

 
—

27,740

3,467

—

31,207

31,207

  Voice
—

8,647

9,952

5,232

23,831

23,831

 
—

9,141

13,253

5,380

27,774

27,774

    Total
68,097

68,883

53,671

29,776

152,330

220,427

 
35,559

68,474

56,878

28,750

154,102

189,661

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of goods sold
26,815

18,648

21,041

8,226

47,915

74,730

 
16,573

19,437

23,541

6,148

49,126

65,699

 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Contribution
41,282

50,235

32,630

21,550

104,415

145,697

 
18,986

49,037

33,337

22,602

104,976

123,962

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less SG&A
4,702

34,273

17,025

13,547

64,845

69,547

 
4,652

30,997

15,799

12,423

59,219

63,871

Less other expense
—

27

18

150

195

195

 
—

—

—

(49
)
(49
)
(49
)
    EBITDA
36,580

15,935

15,587

7,853

39,375

75,955

 
14,334

18,040

17,538

10,228

45,806

60,140

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Add share-based compensation
—

790

652

381

1,823

1,823

 
(104
)
779

596

376

1,751

1,647

Add accretion
117

29

20

12

61

178

 
43

53

36

23

112

155

Add other expense
—

—

—

198

198

198

 
—

—

—

197

197

197

Add facility rights-to-use
563

—

—

—

—

563

 
—

—

—

—

—

—

    Adjusted EBITDA
$
37,260

16,754

16,259

8,444

41,457

78,717

 
$
14,273

18,872

18,170

10,824

47,866

62,139




GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2013
 
Nine Months Ended September 30, 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
$
137,493

21,307

2,228

—

23,535

161,028

 
$
92,066

19,341

2,142

—

21,483

113,549

  Data
—

73,450

118,759

70,594

262,803

262,803

 
—

63,351

105,501

63,431

232,283

232,283

  Video
—

83,375

10,297

—

93,672

93,672

 
—

86,651

9,498

—

96,149

96,149

  Voice
—

27,318

35,532

15,951

78,801

78,801

 
—

31,555

36,704

16,265

84,524

84,524

    Total
137,493

205,450

166,816

86,545

458,811

596,304

 
92,066

200,898

153,845

79,696

434,439

526,505

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of goods sold
57,800

58,275

69,118

19,846

147,239

205,039

 
41,804

58,392

58,248

19,243

135,883

177,687

 
 
 
 
 
 
 
 
 
 
 
 
 
 
    Contribution
79,693

147,175

97,698

66,699

311,572

391,265

 
50,262

142,506

95,597

60,453

298,556

348,818

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less SG&A
13,771

96,576

48,907

38,711

184,194

197,965

 
11,597

93,654

45,534

30,473

169,661

181,258

Less other expense
—

27

18

97

142

142

 
—

—

—

(117
)
(117
)
(117
)
    EBITDA
65,922

50,572

48,773

27,891

127,236

193,158

 
38,665

48,852

50,063

30,097

129,012

167,677

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Add share-based compensation
—

2,083

1,655

991

4,729

4,729

 
—

1,910

1,382

698

3,990

3,990

Add accretion
237

106

72

45

223

460

 
192

177

113

59

349

541

Add other expense
—

—

—

595

595

595

 
—

—

—

531

531

531

Add non-cash contribution
—

—

—

—

—

—

 
—

491

306

163

960

960

Add facility rights-to-use
563

—

—

—

—

563

 
—

—

—

—

—

—

    Adjusted EBITDA
$
66,722

52,761

50,500

29,522

132,783

199,505

 
$
38,857

51,430

51,864

31,548

134,842

173,699





GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2013
 
September 30, 2013
 
 
 
 
 
 
as compared to
 
as compared to
 
 
September 30,
September 30,
June 30,
 
September 30,
June 30,
 
September 30,
June 30,
 
 
2013
2012
2013
 
2012
2013
 
2012
2013
Wireline segment
 
 
 
 
 
 
 
 
 
Consumer
 
 
 
 
 
 
 
 
 
Data
 
 
 
 
 
 
 
 
 
 
Cable modem subscribers
114,800

113,100

115,600

 
1,700

(800
)
 
1.5
 %
-0.7
 %
 
 
 
 
 
 
 
 
 
 
 
Video
 
 
 
 
 
 
 
 
 
 
Basic subscribers
118,400

122,200

119,600

 
(3,800
)
(1,200
)
 
-3.1
 %
-1
 %
 
Digital programming tier subscribers
68,100

72,000

69,500

 
(3,900
)
(1,400
)
 
-5.4
 %
-2
 %
 
HD/DVR converter boxes
92,100

89,200

89,900

 
2,900

2,200

 
3.3
 %
2.4
 %
 
Homes passed
246,600

242,400

245,100

 
4,200

1,500

 
1.7
 %
0.6
 %
 
 
 
 
 
 
 
 
 
 
 
Voice
 
 
 
 
 
 
 
 
 
 
Local access lines in service
62,800

71,900

65,200

 
(9,100
)
(2,400
)
 
-12.7
 %
-3.7
 %
 
Local access lines in service on GCI facilities
58,500

66,900

60,800

 
(8,400
)
(2,300
)
 
-12.6
 %
-3.8
 %
 
 
 
 
 
 
 
 
 
 
 
Business Services - Commercial & nas
 
 
 
 
 
 
 
 
 
Data
 
 
 
 
 
 
 
 
 
 
Cable modem subscribers
14,000

11,600

14,100

 
2,400

(100
)
 
20.7
 %
-0.7
 %
 
 
 
 
 
 
 
 
 
 
 
Video
 
 
 
 
 
 
 
 
 
 
Hotels and mini-headend
  subscribers
19,800

18,500

20,800

 
1,300

(1,000
)
 
7
 %
-4.8
 %
 
Basic subscribers
2,000

1,900

2,000

 
100

—

 
5.3
 %
—
 %
 
   Total basic subscribers
21,800

20,400

22,800

 
1,400

(1,000
)
 
6.9
 %
-4.4
 %
 
 
 
 
 
 
 
 
 
 
 
Voice
 
 
 
 
 
 
 
 
 
 
Local access lines in service
49,400

51,800

50,500

 
(2,400
)
(1,100
)
 
-4.6
 %
-2.2
 %
 
Local access lines in service on GCI facilities
34,800

30,500

35,600

 
4,300

(800
)
 
14.1
 %
-2.2
 %
 
 
 
 
 
 
 
 
 
 
 
Managed Broadband - UUI
 
 
 
 
 
 
 
 
 
Voice:
 
 
 
 
 
 
 
 
 
 
Local access lines in service
7,800

8,500

8,100

 
(700
)
(300
)
 
-8.2
 %
-3.7
 %
 
 
 
 
 
 
 
 
 
 
 
Consumer and Business Services Combined
 
 
 
 
 
 
 
 
 
Wireless
 
 
 
 
 
 
 
 
 
 
Consumer Lifeline lines in service
29,600

35,500

32,600

 
(5,900
)
(3,000
)
 
-16.6
 %
-9.2
 %
 
Consumer Non-Lifeline lines in service
94,800

87,300

92,800

 
7,500

2,000

 
8.6
 %
2.2
 %
 
Business Services Non-Lifeline lines in service
17,900

16,600

17,500

 
1,300

400

 
7.8
 %
2.3
 %
 
Total wireless lines in service
142,300

139,400

142,900

 
2,900

(600
)
 
2.1
 %
-0.4
 %



GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2013
 
September 30, 2013
 
 
Three Months Ended
 
as Compared to
 
as Compared to
 
 
September 30,
September 30,
June 30,
 
September 30,
June 30,
 
September 30,
June 30,
 
 
2013
2012
2013
 
2012
2013
 
2012
2013
 
 
 
 
 
 
 
 
 
 
 
Wireline segment
 
 
 
 
 
 
 
 
 
Consumer
 
 
 
 
 
 
 
 
 
Data
 
 
 
 
 
 
 
 
 
 
Average monthly revenue per cable modem subscriber
$
70.81

$
63.91

$
68.49

 
$
6.90

$
2.32

 
10.8
 %
3.4
%
 
 
 
 
 
 
 
 
 
 
 
Video
 
 
 
 
 
 
 
 
 
 
Average monthly revenue per subscriber
$
77.64

$
77.45

$
76.47

 
$
0.19

$
1.17

 
0.2
 %
1.5
%
 
 
 
 
 
 
 
 
 
 
 
Combined Consumer and Business Services
 
 
 
 
 
 
 
 
 
Wireless
 
 
 
 
 
 
 
 
 
 
Average monthly revenue per subscriber
$
50.76

$
46.34

$
49.99

 
$
4.42

$
0.77

 
9.5
 %
1.5
%
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
 
Voice
 
 
 
 
 
 
 
 
 
 
Long-distance minutes carried (in millions)
239.1

243.2

238.0

 
(4.1
)
1.1

 
-1.7
 %
0.5
%






General Communication, Inc.
 
 
 
 
 
 
 
 
Non-GAAP Financial Reconciliation Schedule
 
 
 
 
 
 
 
 
(Unaudited, Amounts in Millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
September 30,
 
September 30,
 
June 30,
 
September 30,
 
September 30,
 
 
 
2013
 
2012
 
2013
 
2013
 
2012
Net income
 
$
20.0

 
3.5

 
4.1

 
27.2

 
8.6

Income tax expense
 
 
1.0

 
5.3

 
4.1

 
8.2

 
10.4

Income before income tax expense
 
 
21.0

 
8.8

 
8.2

 
35.4

 
19.0

 
 
 
 
 
 
 
 
 
 
 
 
Other expense:
 
 
 
 
 
 
 
 
 
 
 
Interest expense (including amortization of deferred loan fees)
 
 
17.5

 
16.8

 
17.4

 
51.9

 
50.9

Loss on extinguishment of debt
 
 
—

 
—

 
0.2

 
0.1

 
—

Other
 
 
0.2

 
(0.2
)
 
(0.1
)
 
0.1

 
(0.2
)
Other expense
 
 
17.7

 
16.6

 
17.5

 
52.1

 
50.7

 
 
 
 
 
 
 
 
 
 
 
 
Operating income
 
 
38.7

 
25.4

 
25.7

 
87.5

 
69.7

Depreciation and amortization expense
 
 
37.3

 
32.1

 
34.4

 
105.7

 
97.9

Other
 
 
—

 
0.2

 
—

 
—

 
0.1

 
 
 
 
 
 
 
 
 
 
 
 
EBITDA (Note 2)
 
 
76.0

 
57.7

 
60.1

 
193.2

 
167.7

Share-based compensation
 
 
1.8

 
1.4

 
1.6

 
4.7

 
4.0

Accretion
 
 
0.2

 
0.2

 
0.2

 
0.5

 
0.5

Other
 
 
0.2

 
0.1

 
0.2

 
0.6

 
0.5

Non-cash contribution adjustment
 
 
—

 
—

 
—

 
—

 
1.0

Non-cash right-to-use
 
 
0.5

 
—

 
—

 
0.5

 
—

Adjusted EBITDA (Note 1)
 
$
78.7

 
59.4

 
62.1

 
199.5

 
173.7

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