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 FOURTH QUARTER 2013 FINANCIAL RESULTS

•
Consolidated revenue of $218 million, $812 million for the year
•
Adjusted EBITDA of $68 million, $267 million for the year

March 5, 2014, Anchorage AK - General Communication, Inc. (“GCI”) (NASDAQ:GNCMA) today reported record performance for 2013, with fiscal year 2013 results of consolidated revenues of $812 million, adjusted EBITDA of $267 million, and net income of $9 million or $0.23 per diluted share. The EBITDA performance was slightly ahead of previously provided guidance. These results reflect the consolidation of the The Alaska Wireless Network (“AWN”) transaction, which was effective July 23, 2013.

For the fourth quarter of 2013, revenue increased to $218 million or 19 percent over the fourth quarter of 2012. Adjusted EBITDA increased to $68 million or 28 percent over the fourth quarter of 2012. Net loss for the fourth quarter was $(7) million or $(0.17) per share.

“2013 has been a year of great significance for GCI, for many reasons. Record EBITDA is the most visible measure, but it was achieved on the basis of substantial investment and achievements in all areas of the business,” said Ron Duncan, GCI president and chief executive officer. “We are now prepared to realize the rewards of our investments in the network, in AWN, and in our operations.”

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”). 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 is the first full quarter of AWN’s operations.

Wireless revenues of $62 million for the fourth quarter of 2013 decreased from the third quarter of 2013 revenues of $66 million, reflecting a full quarter of AWN operations but offset by the seasonality of roaming. Wireless Adjusted EBITDA of $28 million decreased from the third quarter 2013 Adjusted EBITDA of $37 million due to the lower margin contribution of less roaming, and the cost of customer acquisition by the retail partners.

For the fourth quarter of 2013, the revenue detail is as follows:

($ millions)
4Q 2013
4Q 2012
3Q 2013
Wholesale Wireless
$24
$15
$22
Roaming and Backhaul
$25
$10
$31
USF Support
$13
$8
$13
Total Wireless Revenue
$62
$33
$66

During the quarter, the company implemented many enhancements and improvements to the network, including:

•
The system in the Juneau area was substantially upgraded, with LTE and expanded GSM/HSPA capabilities. LTE service is scheduled to go live in Fairbanks later this month.
•
A new prepaid system was developed and implemented, which includes LTE data capability.
•
The first rural 3G system was launched in Dillingham.
•
148 new TurboZones were turned up, for a total of 1,110 sites.



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


Wireline:

The Wireline segment posted revenues of $156 million for the fourth quarter of 2013, compared with $151 million for the same period in 2012, representing 3% growth. Adjusted EBITDA for the fourth quarter of 2013 was $40 million, a slight decline from 2012’s fourth quarter Adjusted EBITDA of $41 million, reflecting an increased allocation of operating expenses to this segment.

Wireline -- Consumer:
Consumer revenues of $69 million for the fourth quarter of 2013 represented a slight increase over the same period in 2012. Increases in data offset decreases in wireless, voice and video revenues.

During the quarter, the Company announced several campaigns and new programs:

•
“March to a Gigabit” announced GCI’s commitment to providing gigabit data service, which was accompanied by an immediate increase to data speeds in many of the urban areas. Data speeds were again increased yesterday, up to 200Mps in some areas. Responses to the offering and the increases have been robust.
•
While overall video had a slight decline, there has been an acceleration of demand for TiVo and TiVo box growth has been strong, which has helped reduce churn.
•
GCI launched a new wireless prepaid platform, offering statewide service under the brand name FastPhone.
•
Demand has also been strong for cellular-enabled tablets, including the iPad.

Wireline -- Business Services:
Business Services revenues of $56 million for the fourth quarter of 2013 increased 4 percent over the same period in 2012.

The fourth quarter reflected solid performance across all products, with cable advertising predictably strong throughout the holiday season. Overall, growth in the quarter was driven by video and voice, with data transport and storage charges also adding to the growth.

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

($ millions)
4Q 2013
4Q 2012
3Q 2013
Data Transport & Storage Charges
$24
$23
$25
Professional Services
$12
$15
$14
Total Data Revenue
$36
$38
$39

    
Wireline -- Managed Broadband:    
Managed Broadband revenues for the fourth quarter of 2013 totaled $30 million, an increase of 6 percent over the fourth quarter of 2012. This positive performance is driven in part by the expansion of and increasing demand for the TERRA services in rural Alaska.

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.

Corporate Highlights

•
Capital Expenditures for the year were $181 million, which included $16 million of grant funded



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

expenditures, for a net of $165 million. $28 million of the capital expenditures were attributable to the Wireless segment and $137 million were attributable to the Wireline segment. This is slightly below the previously announced guidance.
•
During 2013, the Company repurchased 1.8 million shares of GCI common stock, at a total cost of $15.6 million.
•
Following the acquisition of KTVA-TV (CBS) by the company’s subsidiary, Denali Media, KTVA moved into a newly constructed, state of the art, high definition (HD) facility in December, and launched expanded HD news programming. KTVA is the first station in Alaska to present local news in HD.
•
Denali Media also purchased KATH and KSCT, low power NBC affiliates in Juneau and Sitka.

Guidance

The Company also provided guidance for 2014. With strong continued performance by all segments and customer groups, the Company is anticipating to achieve Consolidated Revenues in the range of $910 million to $930 million and Adjusted EBITDA in the range of $285 million to $305 million.

For capital expenditures, the base investment program is expected to be lower than last year, and should be $140 million to $150 million, down from the $165 million (net of grants) this past year. This does not include any real estate investment, as we continue to review our leased property portfolio. The Company has identified a unique opportunity in the wireless market to solidify its competitive position, and believes that an acceleration of the wireless build out is warranted, to bring full LTE service to 80% of Alaska. This is expected to accelerate approximately $30 million of planned expenditures from the outer years into 2014, bringing the total expected capital spend to about $170 million.

GCI will hold a conference call to discuss the quarter’s results on Thursday, March 6, 2014 beginning at 2 p.m. (Eastern). To access the briefing, call the conference operator between 1:50-2:00 p.m. (Eastern Time) at 877-918-2314 (International callers should dial +1-517-308-9338) 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 800-839-2291, access code 7461 (International callers should dial +1-402-998-1194.)

About GCI

GCI is the largest Alaska-based and -operated, integrated telecommunications provider, offering voice, data and video services statewide. Learn more about GCI at www.gci.com/about.

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)
 
 
 
 
December 31,
 
December 31,
ASSETS
2013
 
2012
Current assets:
 
 
 
Cash and cash equivalents
$
44,971

 
24,491

 
 
 
 
Receivables
230,393

 
150,436

Less allowance for doubtful receivables
2,346

 
3,215

Net receivables
228,047

 
147,221

 
 
 
 
Deferred income taxes
39,753

 
12,897

Prepaid expenses
7,725

 
8,441

Inventories
10,348

 
12,098

Other current assets
230

 
1,678

Total current assets
331,074

 
206,826

 
 
 
 
Property and equipment in service, net of depreciation
969,578

 
838,247

Construction in progress
87,476

 
94,418

Net property and equipment
1,057,054

 
932,665

 
 
 
 
Goodwill
219,041

 
77,294

Cable certificates
191,635

 
191,635

Wireless licenses
91,400

 
25,967

Other intangible assets, net of amortization
71,435

 
16,560

Deferred loan and senior notes costs, net of amortization
12,129

 
11,189

Other assets
40,061

 
44,386

Total other assets
625,701

 
367,031

Total assets
$
2,013,829

 
1,506,522

 
 
 
 



GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Continued)
(Amounts in thousands)
 
 
 
 
December 31,
 
December 31,
LIABILITIES AND STOCKHOLDERS’ EQUITY
2013
 
2012
Current liabilities:
 
 
 
  Current maturities of obligations under long-term debt and
    capital leases
$
9,301

 
7,923

Accounts payable
67,116

 
52,384

Accrued payroll and payroll related obligations
29,855

 
19,440

Deferred revenue
27,586

 
25,218

Accrued liabilities
14,359

 
15,242

Accrued interest
7,088

 
6,786

Subscriber deposits
1,325

 
1,366

Total current liabilities
156,630

 
128,359

 
 
 
 
Long-term debt, net
1,045,144

 
875,123

Obligations under capital leases, excluding current maturities
66,261

 
72,725

Obligation under capital lease due to related party, excluding
  current maturity
1,880

 
1,892

Deferred income taxes
161,476

 
123,661

Long-term deferred revenue
88,259

 
89,815

Other liabilities
36,825

 
25,511

Total liabilities
1,556,475

 
1,317,086

 
 
 
 
Commitments and contingencies
 
 
 
Stockholders’ equity:
 

 
 

Common stock (no par):
 

 
 

Class A. Authorized 100,000 shares; issued 37,299 and 38,534 shares at December 31, 2013 and 2012, respectively; outstanding 37,209 and 38,357 shares at December 31, 2013 and 2012, respectively
11,467

 
22,703

Class B. Authorized 10,000 shares; issued and outstanding 3,165 and 3,169 shares at December 31, 2013 and 2012, respectively; convertible on a share-per-share basis into Class A common stock
2,673

 
2,676

Less cost of 90 and 177 Class A common shares held in treasury at December 31, 2013 and 2012, respectively
(866
)
 
(1,617
)
Paid-in capital
26,880

 
25,832

Retained earnings
116,990

 
107,584

Total General Communication, Inc. stockholders' equity
157,144

 
157,178

Non-controlling interests
300,210

 
32,258

Total stockholders’ equity
457,354

 
189,436

Total liabilities and stockholders’ equity
$
2,013,829

 
1,506,522




GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
YEARS ENDED DECEMBER 31, 2013, 2012, and 2011
 
 
 
 
 
 
 
(Unaudited)
 
 
 
 
(Amounts in thousands, except per share amounts)
2013
 
2012
 
2011
Revenues:
 
 
 
 
 
Trade
$
788,490

 
710,181

 
679,381

Related party
23,158

 
—

 
—

Total revenues
811,648

 
710,181

 
679,381

 
 
 
 
 
 
Cost of goods sold (exclusive of depreciation and amortization shown separately below):
 
 
 
 
 
Trade
263,491

 
247,501

 
227,399

Related party
16,971

 
—

 
—

Total cost of goods sold
280,462

 
247,501

 
227,399

 
 
 
 
 
 
Selling, general and administrative expenses
271,065

 
243,248

 
235,521

Depreciation and amortization expense
147,259

 
130,452

 
125,937

Operating income
112,862

 
88,980

 
90,524

 
 
 
 
 
 
Other income (expense):
 
 
 
 
 
Interest expense (including amortization of deferred loan fees)
(69,725
)
 
(67,747
)
 
(68,258
)
Loss on extinguishment of debt
(103
)
 
—

 
(9,111
)
Other
(350
)
 
17

 
(264
)
Other expense, net
(70,178
)
 
(67,730
)
 
(77,633
)
Income before income tax expense
42,684

 
21,250

 
12,891

Income tax expense
(10,957
)
 
(12,088
)
 
(7,405
)
 
 
 
 
 
 
Net income
31,727

 
9,162

 
5,486

Net income (loss) attributable to non-controlling interests
22,321

 
(511
)
 
(238
)
Net income attributable to General Communication, Inc.
$
9,406

 
9,673

 
5,724

Basic net income attributable to General Communication, Inc. common stockholders per Class A common share
$
0.23

 
0.23

 
0.13

Basic net income attributable to General Communication, Inc. common stockholders per Class B common share
$
0.23

 
0.23

 
0.13

Diluted net income attributable to General Communication, Inc. common stockholders per Class A common share
$
0.23

 
0.23

 
0.12

Diluted net income attributable to General Communication, Inc. common stockholders per Class B common share
$
0.23

 
0.23

 
0.12

Common shares used to calculate Class A basic EPS
$
37,732

 
38,560

 
42,175

Common shares used to calculate Class A diluted EPS
$
41,040

 
42,119

 
45,889





GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
 
Fourth Quarter 2013
 
Fourth Quarter 2012
 
Third Quarter 2013
 
Wireless
Wireline
 
 
Wireless
Wireline
 
 
Wireless
Wireline
 
 
Segment
Segment
Total
 
Segment
Segment
Total
 
Segment
Segment
Total
Revenues
 
 
 
 
 
 
 
 
 
 
 
  Wireless
$
62,209

7,368

69,577

 
32,679

7,814

40,493

 
65,613

8,366

73,979

  Data
—

87,080

87,080

 
—

84,652

84,652

 
—

88,754

88,754

  Video
—

32,867

32,867

 
—

31,999

31,999

 
—

31,379

31,379

  Voice
—

28,304

28,304

 
—

26,532

26,532

 
—

23,831

23,831

    Total
62,209

155,619

217,828

 
32,679

150,997

183,676

 
65,613

152,330

217,943

 
 
 
 
 
 
 
 
 
 
 
 
Cost of goods sold
28,980

49,490

78,470

 
16,933

52,881

69,814

 
23,768

47,915

71,683

 
 
 
 
 
 
 
 
 
 
 
 
    Contribution
33,229

106,129

139,358

 
15,746

98,116

113,862

 
41,845

104,415

146,260

 
 
 
 
 
 
 
 
 
 
 
 
Less SG&A
5,633

67,467

73,100

 
3,878

58,112

61,990

 
4,702

64,845

69,547

    EBITDA
27,596

38,662

66,258

 
11,868

40,004

51,872

 
37,143

39,570

76,713

 
 
 
 
 
 
 
 
 
 
 
 
Share-based compensation
—

1,909

1,909

 
—

1,050

1,050

 
—

1,823

1,823

Accretion
270

(653
)
(383
)
 
77

(110
)
(33
)
 
117

61

178

Other expense
—

(6
)
(6
)
 
—

221

221

 
—

3

3

    Adjusted EBITDA
$
27,866

39,912

67,778

 
11,945

41,165

53,110

 
37,260

41,457

78,717




GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
Twelve Months Ended December 31, 2013
 
Twelve Months Ended December 31, 2012
 
Wireless
Wireline
 
 
Wireless
Wireline
 
 
Segment
Segment
Total
 
Segment
Segment
Total
Revenues
 
 
 
 
 
 
 
  Wireless
$
197,218

30,903

228,121

 
$
124,745

29,297

154,042

  Data
—

349,883

349,883

 
—

316,935

316,935

  Video
—

126,539

126,539

 
—

128,148

128,148

  Voice
—

107,105

107,105

 
—

111,056

111,056

    Total
197,218

614,430

811,648

 
124,745

585,436

710,181

 
 
 
 
 
 
 
 
Cost of goods sold
83,733

196,729

280,462

 
58,737

188,764

247,501

 
 
 
 
 
 
 
 
    Contribution
113,485

417,701

531,186

 
66,008

396,672

462,680

 
 
 
 
 
 
 
 
Less SG&A
19,404

251,661

271,065

 
15,475

227,773

243,248

    EBITDA
94,081

166,040

260,121

 
50,533

168,899

219,432

 
 
 
 
 
 
 
 
Share-based compensation
—

6,638

6,638

 
—

5,040

5,040

Accretion
507

(430
)
77

 
269

239

508

Other expense
—

447

447

 
—

869

869

Non-cash contribution
—

—

—

 
—

960

960

    Adjusted EBITDA
$
94,588

172,695

267,283

 
$
50,802

176,007

226,809








GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
WIRELINE SEGMENT SUPPLEMENTAL REVENUE SCHEDULES
(Unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
Fourth Quarter 2013
 
Fourth Quarter 2012
 
 
Business
Managed
 
 
 
Business
Managed
 
 
Consumer
Services
Broadband
Total
 
Consumer
Services
Broadband
Total
Revenues
 
 
 
 
 
 
 
 
 
  Wireless
$
6,724

644

—

7,368

 
7,075

739

—

7,814

  Data
26,290

35,739

25,051

87,080

 
23,115

38,406

23,131

84,652

  Video
27,993

4,874

—

32,867

 
28,655

3,344

—

31,999

  Voice
8,348

14,741

5,215

28,304

 
9,614

11,558

5,360

26,532

    Total
$
69,355

55,998

30,266

155,619

 
68,459

54,047

28,491

150,997

 
 
 
 
 
 
 
 
 
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
Fourth Quarter 2013
 
Third Quarter 2013
 
 
Business
Managed
 
 
 
Business
Managed
 
 
Consumer
Services
Broadband
Total
 
Consumer
Services
Broadband
Total
Revenues
 
 
 
 
 
 
 
 
 
  Wireless
$
6,724

644

—

7,368

 
7,581

785

—

8,366

  Data
26,290

35,739

25,051

87,080

 
24,981

39,229

24,544

88,754

  Video
27,993

4,874

—

32,867

 
27,674

3,705

—

31,379

  Voice
8,348

14,741

5,215

28,304

 
8,647

9,952

5,232

23,831

    Total
$
69,355

55,998

30,266

155,619

 
68,883

53,671

29,776

152,330

 
 
 
 
 
 
 
 
 
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
Twelve Months Ended December 31, 2013
 
Twelve Months Ended December 31, 2012
 
 
Business
Managed
 
 
 
Business
Managed
 
 
Consumer
Services
Broadband
Total
 
Consumer
Services
Broadband
Total
Revenues
 
 
 
 
 
 
 
 
 
  Wireless
$
28,031

2,872

—

30,903

 
26,416

2,881

—

29,297

  Data
99,740

154,498

95,645

349,883

 
86,466

143,907

86,562

316,935

  Video
111,368

15,171

—

126,539

 
115,306

12,842

—

128,148

  Voice
35,666

50,273

21,166

107,105

 
41,169

48,262

21,625

111,056

    Total
$
274,805

222,814

116,811

614,430

 
269,357

207,892

108,187

585,436





GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
 
December 31, 2013
 
 
 
 
 
 
as compared to
 
as compared to
 
 
December 31,
December 31,
September 30,
 
December 31,
September 30,
 
December 31,
September 30,
 
 
2013
2012
2013
 
2012
2013
 
2012
2013
Wireline Segment
 
 
 
 
 
 
 
 
 
Consumer
 
 
 
 
 
 
 
 
 
Data
 
 
 
 
 
 
 
 
 
 
Cable modem subscribers
115,300

115,600

114,800

 
(300
)
500

 
-0.3
 %
0.4
 %
Video
 
 
 
 
 
 
 
 
 
 
Basic subscribers
117,900

122,300

118,400

 
(4,400
)
(500
)
 
-3.6
 %
-0.4
 %
 
Digital programming tier subscribers
67,500

72,500

68,100

 
(5,000
)
(600
)
 
-6.9
 %
-0.9
 %
 
HD/DVR converter boxes
96,900

90,400

92,100

 
6,500

4,800

 
7.2
 %
5.2
 %
 
Homes passed
247,400

243,600

246,600

 
3,800

800

 
1.6
 %
0.3
 %
Voice
 
 
 
 
 
 
 
 
 
 
Local access lines in service
61,000

69,700

62,800

 
(8,700
)
(1,800
)
 
-12.5
 %
-2.9
 %
 
Local access lines in service on GCI facilities
56,900

64,900

58,500

 
(8,000
)
(1,600
)
 
-12.3
 %
-2.7
 %
Business Services
 
 
 
 
 
 
 
 
 
Data
 
 
 
 
 
 
 
 
 
 
Cable modem subscribers
14,000

13,300

14,000

 
700

—

 
5.3
 %
—
 %
Video
 
 
 
 
 
 
 
 
 
 
Hotels and mini-headend subscribers
16,800

15,800

19,800

 
1,000

(3,000
)
 
6.3
 %
-15.2
 %
 
Basic subscribers
2,000

1,900

2,000

 
100

—

 
5.3
 %
—
 %
 
Total basic subscribers
18,800

17,700

21,800

 
1,100

(3,000
)
 
6.2
 %
-13.8
 %
Voice
 
 
 
 
 
 
 
 
 
 
Local access lines in service
48,800

51,600

49,400

 
(2,800
)
(600
)
 
-5.4
 %
-1.2
 %
 
Local access lines in service on GCI facilities
34,700

30,800

34,800

 
3,900

(100
)
 
12.7
 %
-0.3
 %
Managed Broadband
 
 
 
 
 
 
 
 
 
Voice
 
 
 
 
 
 
 
 
 
 
Local access lines in service
7,600

8,300

7,800

 
(700
)
(200
)
 
-8.4
 %
-2.6
 %
Consumer and Business Services Combined
Wireless
 
 
 
 
 
 
 
 
 
 
Consumer Lifeline lines in service
29,300

32,400

29,600

 
(3,100
)
(300
)
 
-9.6
 %
-1.0
 %
 
Consumer Non-Lifeline lines in service
93,600

90,600

94,800

 
3,000

(1,200
)
 
3.3
 %
-1.3
 %
 
Business Services Non-Lifeline lines in service
18,600

17,000

17,900

 
1,600

700

 
9.4
 %
3.9
 %
 
Total wireless lines in service
141,500

140,000

142,300

 
1,500

(800
)
 
1.1
 %
-0.6
 %



GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
 
December 31, 2013
 
 
Three Months Ended
 
as compared to
 
as compared to
 
 
December 31,
December 31,
September 30,
 
December 31,
September 30,
 
December 31,
September 30,
 
 
2013
2012
2013
 
2012
2013
 
2012
2013
Wireline segment
 
 
 
 
 
 
 
 
 
Consumer
 
 
 
 
 
 
 
 
 
Data
 
 
 
 
 
 
 
 
 
 
Average monthly revenue per cable modem subscriber
$
74.42

$
66.88

$
70.81

 
$
7.54

$
3.61

 
11.3
 %
5.1
 %
 
 
 
 
 
 
 
 
 
 
 
Video
 
 
 
 
 
 
 
 
 
 
Average monthly revenue per subscriber
$
78.84

$
77.99

$
77.64

 
$
0.85

$
1.20

 
1.1
 %
1.5
 %
 
 
 
 
 
 
 
 
 
 
 
Combined Consumer and Business Services
 
 
 
 
 
 
 
 
 
Wireless
 
 
 
 
 
 
 
 
 
 
Average monthly revenue per subscriber
$
50.46

$
47.56

$
50.05

 
$
2.90

$
0.41

 
6.1
 %
0.8
 %
 
 
 
 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
 
Voice
 
 
 
 
 
 
 
 
 
 
Long-distance minutes carried (in millions)
217.3

227.2

239.1

 
(9.9
)
(21.8
)
 
(4.4
)%
(9.1
)%






General Communication, Inc.
 
 
 
 
 
 
 
 
Non-GAAP Financial Reconciliation Schedule
 
 
 
 
 
 
 
 
(Unaudited, Amounts in Millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Year Ended
 
 
 
December 31,
 
December 31,
 
September 30,
 
December 31,
 
December 31,
 
 
 
2013
 
2012
 
2013
 
2013
 
2012
Net income
 
$
4.5

 
0.6

 
20.0

 
31.7

 
9.2

Income tax expense
 
 
2.8

 
1.7

 
1.0

 
11.0

 
12.1

Income before income tax expense
 
 
7.3

 
2.3

 
21.0

 
42.7

 
21.3

 
 
 
 
 
 
 
 
 
 
 
 
Other expense:
 
 
 
 
 
 
 
 
 
 
 
Interest expense (including amortization of deferred loan fees)
 
 
17.9

 
16.9

 
17.5

 
69.7

 
67.7

Loss on extinguishment of debt
 
 
—

 
—

 
—

 
0.1

 
—

Other
 
 
0.2

 
0.1

 
0.2

 
0.4

 
—

Other expense
 
 
18.1

 
17.0

 
17.7

 
70.2

 
67.7

 
 
 
 
 
 
 
 
 
 
 
 
Operating income
 
 
25.4

 
19.3

 
38.7

 
112.9

 
89.0

Depreciation and amortization expense
 
 
40.9

 
32.6

 
38.0

 
147.2

 
130.4

 
 
 
 
 
 
 
 
 
 
 
 
EBITDA (Note 2)
 
 
66.3

 
51.9

 
76.7

 
260.1

 
219.4

Share-based compensation
 
 
1.9

 
1.0

 
1.8

 
6.6

 
5.0

Accretion
 
 
(0.4
)
 
—

 
0.2

 
0.1

 
0.5

Other
 
 
—

 
0.2

 
—

 
0.5

 
0.9

Non-cash contribution adjustment
 
 
—

 
—

 
—

 
—

 
1.0

Adjusted EBITDA (Note 1)
 
$
67.8

 
53.1

 
78.7

 
267.3

 
226.8

 
 
 
 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
 
 
 
 
 
(1) EBITDA (as defined in Note 2 below) before deducting share-based compensation, accretion expense, net income or loss from equity investments, net income or loss attributable to non-controlling interests resulting from New Markets Tax Credit transactions 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.