Exhibit 99.1

                    


GCI REPORTS FIRST QUARTER 2014 FINANCIAL RESULTS
Consolidated Revenues of $216 million, Adjusted EBITDA of $75 million
May 7, 2014, Anchorage AK - General Communication, Inc. (“GCI”) (NASDAQ:GNCMA) today reported performance for the first quarter of 2014, with consolidated revenues of $216 million, adjusted EBITDA of $75 million, and net income of $2 million or $0.05 per share.
Consolidated revenues of $216 million declined four percent on a sequential basis and increased sixteen percent on a year over year basis. Adjusted EBITDA of $75 million represented a ten percent increase on a sequential basis and a twenty seven percent increase on a year over year basis.
“Our first quarter results provide a solid foundation for growth in 2014,” said Ron Duncan, GCI president and chief executive officer. “We are particularly pleased with progress in our cable modem and managed broadband service offerings.  Our 2014 capital investment plan is well under way with particular emphasis on expanding our 4G LTE footprint throughout Alaska and continuing expansion of the TERRA network.”
Important Notes
It should be noted that both Wireless and Wireline segment results are materially affected by The Alaska Wireless Network (“AWN”) transaction, which was effective July 23, 2013.
Also, under the AWN operating agreement, each partner is allowed to receive certain reimbursements for customer equipment, commonly known as “handset subsidies,” according to a schedule for qualified devices. In the fourth quarter of 2013, GCI elected not to seek any handset subsidies at this time, and reversed the preliminary subsidies booked in the third quarter of 2013. This decision was made due to internal system limitations on tracking the subsidies with the level of precision required. GCI expects to




resume seeking handset subsidies before year-end. There was no economic impact, but rather a shift of EBITDA between segments.
Segment adjusted EBITDA performance on a pro forma basis, using a standard subsidy recovery rate, is shown below.
Operating Highlights
Wireless:
The Wireless segment, reflecting the results of AWN, posted revenues of $63 million, a slight increase on a sequential basis, and an eighty five percent increase on a year over year basis, reflecting the results of the AWN transaction, which was effective July 23, 2013. Wireless adjusted EBITDA for the period was $38 million, reflecting an eleven percent decline on a sequential basis and a one hundred fifty percent increase on a year over year basis.
Removing the handset subsidy reversal in the first and fourth quarters of 2013 and providing an estimated handset subsidy for all of the quarters would result in a pro forma adjusted EBITDA as follows:
 ($millions)
1Q 2014
4Q 2013
1Q 2013
Wireless Reported Adjusted EBITDA
38.0
42.9
15.2
Wireless Reported Subsidy to Wireline
0.0
(5.2)
5.5
Wireless Adjusted EBITDA Without Subsidy
38.0
37.7
20.7
Estimated Subsidy @ 75% of Gross Handsets
(5.5)
(9.8)
(5.6)
Wireless Pro Forma Adjusted EBITDA
32.5
27.9
15.1

Thus, on a pro forma basis, Wireless adjusted EBITDA increased seventeen percent on a sequential basis and one hundred fifteen percent on a year over year basis.
For the first quarter of 2014, the revenue detail was as follows:





($ millions)
1Q 2014
4Q 2013
1Q 2013
Wholesale Wireless
25
24
16
Roaming and Backhaul
25
25
10
USF Support
13
13
8
Total Wireless Revenue
63
62
34

Since the beginning of the year, the company implemented many enhancements and improvements to the wireless network, including:
The Fairbanks market was substantially upgraded with LTE service going live April 30th. Also on April 30th, 3G service was launched in Bethel. In all, 11 new LTE sites and four new 3G sites were put into service across the state.
Turbozone has continued to expand, and now covers 1,146 venues with 1,843 access points.
The Company acknowledged the preliminary award of $41.4 million in the Tribal Mobility Fund I auction, which, upon final FCC approval, will support the expanded provision of 3G and 4G service in rural Alaska.

Wireline:

The Wireline segment posted revenues of $154 million, a one percent decline on a sequential basis, and a one percent increase on a year over year basis. Adjusted EBITDA for the segment was $37 million, representing a forty eight percent increase on a sequential basis, and a fifteen percent decline on a year over year basis. The year over year decline is due to labor and healthcare cost increases.
Removing the handset subsidy reversal in the first and fourth quarters of 2013 and providing an estimated handset subsidy for all of the quarters would result in a pro forma adjusted EBITDA as follows:




 ($millions)
1Q 2014
4Q 2013
1Q 2013
Wireline Reported Adjusted EBITDA
36.8
24.9
43.5
Reported Subsidy from Wireless
0.0
5.2
(5.5)
Wireline Adjusted EBITDA Without Subsidy
36.8
30.1
38.0
Estimated Subsidy @ 75% of Gross Handsets
5.5
9.8
5.6
Wireline Pro Forma Adjusted EBITDA
42.3
39.9
43.6

Thus, on a pro forma basis, Wireline adjusted EBITDA increased six percent on a sequential basis and decreased three percent on a year over year basis.
The year over year decline is due to labor and healthcare cost increases.
Wireline - Consumer:

Consumer revenues for the first quarter of 2014 were $70 million, a one percent increase on a sequential basis and a three percent increase on a year over year basis. Product groups that grew quarter over quarter included wireless, data and a slight increase in voice, offset by a decline in video revenues.

During the quarter, the Company announced several campaigns and new programs:
Progress to gigabit broadband service has continued. Re:D speeds were doubled from 50 Mbps to 100 Mbps in the fourth quarter of 2013, and then to 200 Mbps in the first quarter of 2014. Furthermore, the Company is driving towards 400 Mbps in some markets by the end of 2014.
TiVo service has been expanded to thirteen markets within Alaska, with the markets having been doubled in the first quarter of 2014.
FastPhone, GCI’s new prepaid wireless service launched late in the fourth quarter of 2013, is showing continued customer adoption.

Wireline - Business Services:
Business Services revenues for the first quarter of 2014 were $52 million, a six percent decline on a sequential basis and a seven percent decline on a year over year basis. These




decreases were driven by a decline in voice products and professional services, offsetting increases in data transport/storage, video and wireless.
The sequential decline in voice products is the result of a one time resolution of a billing dispute with a carrier customer that we received in the fourth quarter of 2013. In addition, Professional Services declined due to the slowing of one particularly active oil and gas project from early 2013 levels. The improvements can be attributed in part to the continued adoption of virtualization by our customers, validating the strength of our cloud and data center products.
Data revenues can be better understood by the following detail:
($ millions)
1Q 2014
4Q 2013
1Q 2013
Data Transport and Storage
24
24
22
Professional Services
11
12
18
Total Data Revenue
35
36
40

Wireline - Managed Broadband:
Managed Broadband revenues for the first quarter of 2014 were $31 million, a three percent increase over the fourth quarter of 2013, and an eleven percent increase over the first quarter of 2013. The increases are attributable to continued demand in the School Access and Telehealth programs, as well as positive momentum in the regulated business.
The Company has recently announced a number of positive developments in this area, including:
The Company continues to be on track with the terrestrial broadband network, TERRA, and particularly with the extension of TERRA to Kotzebue by early 2015.
Corporate Highlights
Cash capital expenditures for the quarter were $20 million, exclusive of grant funded capital expenditures and a satellite capital lease.






Guidance

The Company continues its guidance of annual consolidated revenues in the range of $910 million to $930 million, and adjusted EBITDA in the range of $285 million to $305 million, though there are increased pressures on the top line. Further, the company continues its guidance for cash capital expenditures of approximately $170 million, excluding real estate and the extension of a satellite lease which was capitalized, as well as any grant-funded capital expenditures.
The Company will hold a conference call to discuss the quarter’s results on Thursday, May 8th, at 2:00 p.m. (Eastern). To access the call, call the conference operator between 1:50-2:00 p.m. (Eastern) at 888-390-0685 (International callers should dial +1-773-756-4700) and identify your call as “GCI”. In addition to dial-up access, GCI will make available net conferencing. To access the call via net conference, log on to gci.com and follow the instructions. A replay of the call will be available for 72-hours by dialing 866-373-1992, access code 7461 (International callers should dial +1-203-369-0266).
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 on 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
2014
 
2013
Current assets:
 
 
 
Cash and cash equivalents
$
53,616

 
44,971

 
 
 
 
Receivables (including $31,600 and $28,000 from a related party at March 31, 2014 and December 31, 2013, respectively)
219,050

 
228,372

Less allowance for doubtful receivables
2,445

 
2,346

Net receivables
216,605

 
226,026

 
 
 
 
Deferred income taxes
36,167

 
39,753

Prepaid expenses
11,306

 
7,725

Inventories
6,694

 
10,347

Other current assets
204

 
230

Total current assets
324,592

 
329,052

 
 
 
 
Property and equipment in service, net of depreciation
967,044

 
969,578

Construction in progress
81,245

 
87,476

Net property and equipment
1,048,289

 
1,057,054

 
 
 
 
Goodwill
219,041

 
219,041

Cable certificates
191,635

 
191,635

Wireless licenses
91,400

 
91,400

Other intangible assets, net of amortization
70,564

 
71,435

Deferred loan and senior notes costs, net of amortization of $7,087 and $6,545 at March 31, 2014 and December 31, 2013, respectively
11,772

 
12,129

Other assets
52,507

 
40,061

Total other assets
636,919

 
625,701

Total assets
$
2,009,800

 
2,011,807

 
 
 
 




GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Continued)
(Amounts in thousands)
 
 
 
 
March 31,
 
December 31,
LIABILITIES AND STOCKHOLDERS’ EQUITY
2014
 
2013
Current liabilities:
 
 
 
  Current maturities of obligations under long-term debt and
    capital leases
$
10,520

 
9,301

Accounts payable (including $12,500 and $11,200 to a related party at March 31, 2014 and December 31, 2013, respectively)
50,102

 
65,095

Deferred revenue
29,048

 
27,586

Accrued interest
21,451

 
7,088

Accrued payroll and payroll related obligations
21,327

 
29,855

Accrued liabilities
15,352

 
14,359

Subscriber deposits
1,186

 
1,326

Total current liabilities
148,986

 
154,610

 
 
 
 
Long-term debt, net
1,044,860

 
1,045,144

Obligations under capital leases, excluding current maturities
72,610

 
66,261

Obligation under capital lease due to related party, excluding
  current maturity
1,875

 
1,880

Deferred income taxes
158,104

 
161,476

Long-term deferred revenue
87,102

 
88,259

Other liabilities
37,452

 
36,823

Total liabilities
1,550,989

 
1,554,453

 
 
 
 
Commitments and contingencies
 
 
 
Stockholders’ equity:
 

 
 

Common stock (no par):
 

 
 

Class A. Authorized 100,000 shares; issued 38,389 and 37,299 shares at March 31, 2014 and December 31, 2013, respectively; outstanding 38,363 and 37,209 shares at March 31, 2014 and December 31, 2013, respectively
12,012

 
11,467

Class B. Authorized 10,000 shares; issued and outstanding 3,163 and 3,165 shares at March 31, 2014 and December 31, 2013, respectively; convertible on a share-per-share basis into Class A common stock
2,671

 
2,673

Less cost of 26 and 90 Class A common shares held in treasury at March 31, 2014 and December 31, 2013, respectively
(249
)
 
(866
)
Paid-in capital
27,835

 
26,880

Retained earnings
119,111

 
116,990

Total General Communication, Inc. stockholders' equity
161,380

 
157,144

Non-controlling interests
297,431

 
300,210

Total stockholders’ equity
458,811

 
457,354

Total liabilities and stockholders’ equity
$
2,009,800

 
2,011,807






GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
(Unaudited)
 
 
 
 
 
Three Months Ended
 
March 31,
(Amounts in thousands, except per share amounts)
2014
 
2013
Revenues:
 
 
 
Non-related party
$
200,503

 
186,216

Related party
15,780

 

Total revenues
216,283

 
186,216

 
 
 
 
Cost of goods sold (exclusive of depreciation and amortization shown separately below):
 
 
 
Non-related party
69,143

 
64,610

Related party
2,631

 

Total cost of goods sold
71,774

 
64,610

 
 
 
 
Selling, general and administrative expenses:
 
 
 
Non-related party
70,742

 
64,411

Related party
1,150

 
136

Total selling, general and administrative expenses
71,892

 
64,547

 
 
 
 
Depreciation and amortization expense
42,352

 
33,999

Operating income
30,265

 
23,060

 
 
 
 
Other expense:
 
 
 
Interest expense (including amortization of deferred loan fees)
(18,211
)
 
(16,904
)
Other
(97
)
 

Other expense
(18,308
)
 
(16,904
)
Income before income tax expense
11,957

 
6,156

Income tax expense
(215
)
 
(3,029
)
 
 
 
 
Net income
11,742

 
3,127

Net income (loss) attributable to non-controlling interests
9,621

 
(117
)
Net income attributable to General Communication, Inc.
$
2,121

 
3,244

Basic net income attributable to General Communication, Inc. common stockholders per Class A common share
$
0.05

 
0.08

Basic net income attributable to General Communication, Inc. common stockholders per Class B common share
$
0.05

 
0.08

Diluted net income attributable to General Communication, Inc. common stockholders per Class A common share
$
0.05

 
0.08

Diluted net income attributable to General Communication, Inc. common stockholders per Class B common share
$
0.05

 
0.08

Common shares used to calculate Class A basic EPS
37,987

 
38,264

Common shares used to calculate Class A diluted EPS
41,268

 
41,695






GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
First Quarter 2014
 
First Quarter 2013
 
Wireless
Wireline
 
 
Wireless
Wireline
 
 
Segment
Segment
Total
 
Segment
Segment
Total
Revenues
 
 
 
 
 
 
 
  Wireless
$
62,517

8,236

70,753

 
33,837

7,225

41,062

  Data

87,613

87,613

 

86,872

86,872

  Video

32,401

32,401

 

31,086

31,086

  Voice

25,516

25,516

 

27,196

27,196

    Total
62,517

153,766

216,283

 
33,837

152,379

186,216

 
 
 
 
 
 
 
 
Cost of goods sold
18,713

53,061

71,774

 
14,412

50,198

64,610

 
 
 
 
 
 
 
 
    Contribution
43,804

100,705

144,509

 
19,425

102,181

121,606

 
 
 
 
 
 
 
 
Less SG&A
5,958

65,934

71,892

 
4,417

60,130

64,547

Less (plus) other expense

97

97

 

(4
)
(4
)
    EBITDA
37,846

34,674

72,520

 
15,008

42,055

57,063

 
 
 
 
 
 
 
 
Share-based compensation

1,778

1,778

 
104

1,155

1,259

Accretion
176

125

301

 
77

50

127

Other

198

198

 

200

200

    Adjusted EBITDA
$
38,022

36,775

74,797

 
15,189

43,460

58,649





GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
First Quarter 2014
 
Fourth Quarter 2013
 
Wireless
Wireline
 
 
Wireless
Wireline
 
 
Segment
Segment
Total
 
Segment
Segment
Total
Revenues
 
 
 
 
 
 
 
  Wireless
$
62,517

8,236

70,753

 
$
62,209

7,368

69,577

  Data

87,613

87,613

 

87,080

87,080

  Video

32,401

32,401

 

32,867

32,867

  Voice

25,516

25,516

 

28,304

28,304

    Total
62,517

153,766

216,283

 
62,209

155,619

217,828

 
 
 
 
 
 
 
 
Cost of goods sold
18,713

53,061

71,774

 
13,333

65,137

78,470

 
 
 
 
 
 
 
 
    Contribution
43,804

100,705

144,509

 
48,876

90,482

139,358

 
 
 
 
 
 
 
 
Less SG&A
5,958

65,934

71,892

 
6,259

66,841

73,100

Less other expense

97

97

 



    EBITDA
37,846

34,674

72,520

 
42,617

23,641

66,258

 
 
 
 
 
 
 
 
Share-based compensation

1,778

1,778

 

1,909

1,909

Accretion
176

125

301

 
270

(653
)
(383
)
Other

198

198

 

(6
)
(6
)
    Adjusted EBITDA
$
38,022

36,775

74,797

 
$
42,887

24,891

67,778









GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
WIRELINE SEGMENT SUPPLEMENTAL REVENUE SCHEDULES
(Unaudited)
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
First Quarter 2014
 
First Quarter 2013
 
 
Business
Managed
 
 
 
Business
Managed
 
 
Consumer
Services
Broadband
Total
 
Consumer
Services
Broadband
Total
Revenues
 
 
 
 
 
 
 
 
 
  Wireless
$
7,491

745


8,236

 
6,546

679


7,225

  Data
26,944

34,840

25,829

87,613

 
24,056

40,136

22,680

86,872

  Video
27,249

5,152


32,401

 
27,961

3,125


31,086

  Voice
8,445

11,741

5,330

25,516

 
9,530

12,327

5,339

27,196

    Total
$
70,129

52,478

31,159

153,766

 
68,093

56,267

28,019

152,379

 
 
 
 
 
 
 
 
 
 
(Amounts in thousands)
 
 
 
 
 
 
 
 
 
 
First Quarter 2014
 
Fourth Quarter 2013
 
 
Business
Managed
 
 
 
Business
Managed
 
 
Consumer
Services
Broadband
Total
 
Consumer
Services
Broadband
Total
Revenues
 
 
 
 
 
 
 
 
 
  Wireless
$
7,491

745


8,236

 
6,724

644


7,368

  Data
26,944

34,840

25,829

87,613

 
26,290

35,739

25,051

87,080

  Video
27,249

5,152


32,401

 
27,993

4,874


32,867

  Voice
8,445

11,741

5,330

25,516

 
8,348

14,741

5,215

28,304

    Total
$
70,129

52,478

31,159

153,766

 
69,355

55,998

30,266

155,619

 
 
 
 
 
 
 
 
 
 





GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2014
 
March 31, 2014
 
 

 
as compared to
 
as compared to
 
 
March 31,
March 31,
December 31,
 
March 31,
December 31,
 
March 31,
December 31,
 
 
2014
2013
2013
 
2013
2013
 
2013
2013
Wireline Segment
 
 
 
 
 
 
 
 
 
Consumer
 
 
 
 
 
 
 
 
 
Data
 
 
 
 
 
 
 
 
 
 
Cable modem subscribers
116,400

117,000

115,300

 
(600
)
1,100

 
-0.5
 %
1.0
 %
Video
 
 
 
 
 
 
 
 
 
 
Basic subscribers
118,000

122,000

117,900

 
(4,000
)
100

 
-3.3
 %
0.1
 %
 
Digital programming tier subscribers
66,900

72,200

67,500

 
(5,300
)
(600
)
 
-7.3
 %
-0.9
 %
 
HD/DVR converter boxes
101,200

90,300

96,900

 
10,900

4,300

 
12.1
 %
4.4
 %
 
Homes passed
248,000

244,800

247,400

 
3,200

600

 
1.3
 %
0.2
 %
Voice
 
 
 
 
 
 
 
 
 
 
Local access lines in service
59,800

68,000

61,000

 
(8,200
)
(1,200
)
 
-12.1
 %
-2.0
 %
 
Local access lines in service on GCI facilities
55,700

63,300

56,900

 
(7,600
)
(1,200
)
 
-12.0
 %
-2.1
 %
Business Services
 
 
 
 
 
 
 
 
 
Data
 
 
 
 
 
 
 
 
 
 
Cable modem subscribers
14,000

13,400

14,000

 
600


 
4.5
 %
 %
Video
 
 
 
 
 
 
 
 
 
 
Hotels and mini-headend subscribers
17,000

16,700

16,800

 
300

200

 
1.8
 %
1.2
 %
 
Basic subscribers
2,000

1,900

2,000

 
100


 
5.3
 %
 %
 
Total basic subscribers
19,000

18,600

18,800

 
400

200

 
2.2
 %
1.1
 %
Voice
 
 
 
 
 
 
 
 
 
 
Local access lines in service
48,500

50,400

48,800

 
(1,900
)
(300
)
 
-3.8
 %
-0.6
 %
 
Local access lines in service on GCI facilities
35,000

30,400

34,700

 
4,600

300

 
15.1
 %
0.9
 %
Managed Broadband
 
 
 
 
 
 
 
 
 
Voice
 
 
 
 
 
 
 
 
 
 
Local access lines in service
7,500

8,100

7,600

 
(600
)
(100
)
 
-7.4
 %
-1.3
 %
Consumer and Business Services Combined
Wireless
 
 
 
 
 
 
 
 
 
 
Consumer Lifeline lines in service
29,500

32,700

29,300

 
(3,200
)
200

 
-9.8
 %
0.7
 %
 
Consumer Non-Lifeline lines in service
94,400

91,800

93,600

 
2,600

800

 
2.8
 %
0.9
 %
 
Business Services Non-Lifeline lines in service
18,500

17,100

18,600

 
1,400

(100
)
 
8.2
 %
-0.5
 %
 
Total wireless lines in service
142,400

141,600

141,500

 
800

900

 
0.6
 %
0.6
 %




GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2014
 
March 31, 2014
 
 
Three Months Ended
 
as compared to
 
as compared to
 
 
March 31,
March 31,
December 31,
 
March 31,
December 31,
 
March 31,
December 31,
 
 
2014
2013
2013
 
2013
2013
 
2013
2013
Wireline segment
 
 
 
 
 
 
 
 
 
Consumer
 
 
 
 
 
 
 
 
 
Data
 
 
 
 
 
 
 
 
 
 
Average monthly revenue per cable modem subscriber
$
75.93

$
67.85

$
74.42

 
$
8.08

$
1.51

 
11.9
%
2.0
 %
 
 
 
 
 
 
 
 
 
 
 
Video
 
 
 
 
 
 
 
 
 
 
Average monthly revenue per subscriber
$
76.98

$
76.45

$
78.84

 
$
0.53

$
(1.86
)
 
0.7
%
(2.4
)%
 
 
 
 
 
 
 
 
 
 
 
Combined Consumer and Business Services
 
 
 
 
 
 
 
 
 
Wireless
 
 
 
 
 
 
 
 
 
 
Average monthly revenue per subscriber
$
51.48

$
48.54

$
50.46

 
$
2.94

$
1.02

 
6.1
%
2.0
 %







General Communication, Inc.
 
 
 
 
 
Non-GAAP Financial Reconciliation Schedule
 
 
 
 
 
(Unaudited, Amounts in Thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
March 31,
 
March 31,
 
December 31,
 
 
2014
 
2013
 
2013
Net income
 
$
11,742

 
3,127

 
4,525

Income tax expense
 
215

 
3,029

 
2,800

Income before income tax expense
 
11,957

 
6,156

 
7,325

 
 
 
 
 
 
 
Other expense:
 
 
 
 
 
 
Interest expense (including amortization of deferred loan fees)
 
18,211

 
16,904

 
17,875

Other
 
97

 

 
223

Other expense
 
18,308

 
16,904

 
18,098

 
 
 
 
 
 
 
Operating income
 
30,265

 
23,060

 
25,423

Depreciation and amortization expense
 
42,352

 
33,999

 
40,835

Other
 
(97
)
 
4

 

 
 
 
 
 
 
 
EBITDA (Note 2)
 
72,520

 
57,063

 
66,258

Share-based compensation
 
1,778

 
1,259

 
1,909

Accretion
 
301

 
127

 
(383
)
Other
 
198

 
200

 
(6
)
Adjusted EBITDA (Note 1)
 
$
74,797

 
58,649

 
67,778

 
 
 
 
 
 
 
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 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.