($ millions) | 3Q 2014 | 3Q 2013 | 2Q 2014 |
Wireless Reported EBITDA | 47 | 42 | 40 |
Wireless Reported Subsidy to Wireline | 6 | 0 | 5 |
Wireless Adjusted EBITDA without Subsidy | 53 | 42 | 45 |
Normalized Subsidy | 6 | 5 | 5 |
Wireless Pro Forma Adjusted EBITDA | 47 | 37 | 40 |
($ millions) | 3Q 2014 | 3Q 2013 | 2Q 2014 |
Wholesale Wireless | 25 | 22 | 25 |
Roaming and Backhaul | 38 | 31 | 30 |
USF Support | 13 | 13 | 14 |
Total Wireless Revenue | 76 | 66 | 69 |
($ millions) | 3Q 2014 | 3Q 2013 | 2Q 2014 |
Wireline Reported EBITDA | 46 | 36 | 44 |
Reported Subsidy from Wireless | 6 | 0 | 5 |
Wireline Adjusted EBITDA without Subsidy | 40 | 36 | 39 |
Normalized Subsidy | 6 | 5 | 5 |
Wireline Pro Forma Adjusted EBITDA | 46 | 41 | 44 |
• | Cable modem subscribers were up 2,200 or two percent on a year-over-year basis, and up 1,400 or one percent on a sequential basis. |
• | While basic subscribers dropped 2,500 or two percent on a year-over year-basis, the number of HD/DVR converter boxes were up 13,500 or 15 percent, driven in part by the success of TiVo. On a sequential basis, basic subscribers were essentially flat, with the number of HD/DVR converter boxes up 2,200 or two percent. |
• | Non-Lifeline wireless lines in service were up 5,500 or 6 percent on a year-over-year basis, and up 3,600 or four percent on a sequential basis. |
• | Video ARPU was up $2.58 or three percent on a year-over year-basis, and up $3.73 or five percent on a sequential basis. |
($ millions) | 3Q 2014 | 3Q 2013 | 2Q 2014 |
Data Transport and Storage | 25 | 25 | 25 |
Professional Services | 12 | 14 | 11 |
Total Data Revenue | 37 | 39 | 36 |
• | Cable modem subscribers were up 200 or one percent on a year-over-year basis, and flat sequentially. |
• | Non-Lifeline wireless subscribers were up 700 or four percent on a year-over-year basis, and up 100 or one percent on a sequential basis. |
• | AWN signed the nation’s first LTE roaming partnership with a national domestic operator. |
• | The iPhone 6 and iPhone 6 Plus were launched on September 26th. |
• | Also on the wireless front, AWN received top marks on an independent drive test in Juneau, outperforming competitors in several areas including average 4G LTE download speeds. AWN currently has 104 LTE sites throughout Alaska, and expects to bring on approximately 100 new LTE sites over the next two quarters. |
• | GCI's premiere data service, re:D, had its speed increased to 250 mbps. re:D is currently available in six markets, and GCI has announced the addition of two more markets that will receive gigabit data service in Alaska. |
• | On the video front, GCI strengthened its customer offerings by bringing TiVo service to two new markets and added several new networks on GCI GO (TV Anywhere access). |
• | GCI’s TERRA NW project to bring terrestrial broadband service to rural Northwest Alaska reached a milestone as the last of four mountaintop towers were commissioned. GCI expects to begin migrating Kotzebue traffic onto TERRA by the end of the year. |
• | Cash expenditures for property and equipment have totaled $125 million year to date, which includes $19 million for the purchase of real estate, implying $106 million in core cash capital expenditures. |
• | GCI paid down $66 million in debt during the quarter. |
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(Unaudited) | ||||||
(Amounts in thousands) | ||||||
September 30, | December 31, | |||||
ASSETS | 2014 | 2013 | ||||
Current assets: | ||||||
Cash and cash equivalents | $ | 35,464 | 44,971 | |||
Receivables (including $33,867 and $28,000 from a related party at September 30, 2014 and December 31, 2013, respectively) | 222,405 | 228,372 | ||||
Less allowance for doubtful receivables | 3,502 | 2,346 | ||||
Net receivables | 218,903 | 226,026 | ||||
Deferred income taxes | 36,253 | 39,753 | ||||
Prepaid expenses | 10,887 | 7,725 | ||||
Inventories | 7,952 | 10,347 | ||||
Other current assets | 106 | 230 | ||||
Total current assets | 309,565 | 329,052 | ||||
Property and equipment in service, net of depreciation | 969,265 | 969,578 | ||||
Construction in progress | 121,382 | 87,476 | ||||
Net property and equipment | 1,090,647 | 1,057,054 | ||||
Goodwill | 229,560 | 219,041 | ||||
Cable certificates | 191,635 | 191,635 | ||||
Wireless licenses | 86,347 | 91,400 | ||||
Other intangible assets, net of amortization | 65,173 | 71,435 | ||||
Deferred loan and senior notes costs, net of amortization of $8,124 and $6,545 at September 30, 2014 and December 31, 2013, respectively | 10,825 | 12,129 | ||||
Other assets | 54,937 | 40,061 | ||||
Total other assets | 638,477 | 625,701 | ||||
Total assets | $ | 2,038,689 | 2,011,807 | |||
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(Unaudited) | ||||||
(Continued) | ||||||
(Amounts in thousands) | ||||||
September 30, | December 31, | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | 2014 | 2013 | ||||
Current liabilities: | ||||||
Current maturities of obligations under long-term debt and capital leases | $ | 10,522 | 9,301 | |||
Accounts payable (including $8,621 and $11,200 to a related party at September 30, 2014 and December 31, 2013, respectively) | 73,287 | 65,095 | ||||
Deferred revenue | 31,784 | 27,586 | ||||
Accrued payroll and payroll related obligations | 29,627 | 29,855 | ||||
Accrued interest | 21,293 | 7,088 | ||||
Accrued liabilities | 14,821 | 14,359 | ||||
Subscriber deposits | 1,166 | 1,326 | ||||
Total current liabilities | 182,500 | 154,610 | ||||
Long-term debt, net | 1,019,289 | 1,045,144 | ||||
Obligations under capital leases, excluding current maturities | 68,571 | 66,261 | ||||
Obligation under capital lease due to related party, excluding current maturity | 1,865 | 1,880 | ||||
Deferred income taxes | 160,799 | 161,476 | ||||
Long-term deferred revenue | 85,789 | 88,259 | ||||
Other liabilities | 37,581 | 36,823 | ||||
Total liabilities | 1,556,394 | 1,554,453 | ||||
Commitments and contingencies | ||||||
Stockholders’ equity: | ||||||
Common stock (no par): | ||||||
Class A. Authorized 100,000 shares; issued 38,343 and 37,299 shares at September 30, 2014 and December 31, 2013, respectively; outstanding 38,317 and 37,209 shares at September 30, 2014 and December 31, 2013, respectively | 11,986 | 11,467 | ||||
Class B. Authorized 10,000 shares; issued and outstanding 3,162 and 3,165 shares at September 30, 2014 and December 31, 2013, respectively; convertible on a share-per-share basis into Class A common stock | 2,670 | 2,673 | ||||
Less cost of 26 and 90 Class A common shares held in treasury at September 30, 2014 and December 31, 2013, respectively | (249 | ) | (866 | ) | ||
Paid-in capital | 30,965 | 26,880 | ||||
Retained earnings | 139,778 | 116,990 | ||||
Total General Communication, Inc. stockholders' equity | 185,150 | 157,144 | ||||
Non-controlling interests | 297,145 | 300,210 | ||||
Total stockholders’ equity | 482,295 | 457,354 | ||||
Total liabilities and stockholders’ equity | $ | 2,038,689 | 2,011,807 |
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) | 2014 | 2013 | 2014 | 2013 | ||||||||
Revenues: | ||||||||||||
Non-related party | $ | 225,677 | 205,500 | 636,416 | 581,377 | |||||||
Related party | 15,048 | 12,443 | 44,991 | 12,443 | ||||||||
Total revenues | 240,725 | 217,943 | 681,407 | 593,820 | ||||||||
Cost of goods sold (exclusive of depreciation and amortization shown separately below): | ||||||||||||
Non-related party | 73,971 | 69,606 | 212,821 | 199,915 | ||||||||
Related party | 2,930 | 2,077 | 8,236 | 2,077 | ||||||||
Total cost of goods sold | 76,901 | 71,683 | 221,057 | 201,992 | ||||||||
Selling, general and administrative expenses: | ||||||||||||
Non-related party | 71,717 | 68,468 | 211,144 | 196,133 | ||||||||
Related party | 1,066 | 1,079 | 3,348 | 1,832 | ||||||||
Total selling, general and administrative expenses | 72,783 | 69,547 | 214,492 | 197,965 | ||||||||
Depreciation and amortization expense | 41,705 | 38,029 | 127,843 | 106,424 | ||||||||
Operating income | 49,336 | 38,684 | 118,015 | 87,439 | ||||||||
Other expense: | ||||||||||||
Interest expense (including amortization of deferred loan fees) | (17,848 | ) | (17,522 | ) | (54,229 | ) | (51,850 | ) | ||||
Other | (563 | ) | (180 | ) | (1,709 | ) | (230 | ) | ||||
Other expense | (18,411 | ) | (17,702 | ) | (55,938 | ) | (52,080 | ) | ||||
Income before income tax expense | 30,925 | 20,982 | 62,077 | 35,359 | ||||||||
Income tax expense | (2,481 | ) | (970 | ) | (2,823 | ) | (8,157 | ) | ||||
Net income | 28,444 | 20,012 | 59,254 | 27,202 | ||||||||
Net income attributable to non-controlling interests | 15,932 | 11,107 | 36,466 | 10,873 | ||||||||
Net income attributable to General Communication, Inc. | $ | 12,512 | 8,905 | 22,788 | 16,329 | |||||||
Basic net income attributable to General Communication, Inc. common stockholders per Class A common share | $ | 0.30 | 0.22 | 0.55 | 0.40 | |||||||
Basic net income attributable to General Communication, Inc. common stockholders per Class B common share | $ | 0.30 | 0.22 | 0.55 | 0.40 | |||||||
Diluted net income attributable to General Communication, Inc. common stockholders per Class A common share | $ | 0.30 | 0.22 | 0.55 | 0.39 | |||||||
Diluted net income attributable to General Communication, Inc. common stockholders per Class B common share | $ | 0.30 | 0.22 | 0.55 | 0.39 | |||||||
Common shares used to calculate Class A basic EPS | 38,425 | 37,434 | 38,266 | 37,887 | ||||||||
Common shares used to calculate Class A diluted EPS | 41,734 | 40,776 | 41,575 | 41,319 |
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | ||||||||||||||
SUPPLEMENTAL SCHEDULES | ||||||||||||||
(Unaudited) | ||||||||||||||
(Amounts in thousands) | ||||||||||||||
Third Quarter 2014 | Third Quarter 2013 | |||||||||||||
Wireless | Wireline | Wireless | Wireline | |||||||||||
Segment | Segment | Total | Segment | Segment | Total | |||||||||
Revenues | ||||||||||||||
Wireless | $ | 76,398 | 8,823 | 85,221 | 65,613 | 8,366 | 73,979 | |||||||
Data | — | 92,208 | 92,208 | — | 88,754 | 88,754 | ||||||||
Video | — | 38,328 | 38,328 | — | 31,379 | 31,379 | ||||||||
Voice | — | 24,968 | 24,968 | — | 23,831 | 23,831 | ||||||||
Total | 76,398 | 164,327 | 240,725 | 65,613 | 152,330 | 217,943 | ||||||||
Cost of goods sold | 24,021 | 52,880 | 76,901 | 18,530 | 53,153 | 71,683 | ||||||||
Contribution | 52,377 | 111,447 | 163,824 | 47,083 | 99,177 | 146,260 | ||||||||
Less SG&A | 5,336 | 67,447 | 72,783 | 4,702 | 64,845 | 69,547 | ||||||||
Less other expense | — | 560 | 560 | — | 195 | 195 | ||||||||
EBITDA | 47,041 | 43,440 | 90,481 | 42,381 | 34,137 | 76,518 | ||||||||
Share-based compensation | — | 2,153 | 2,153 | — | 1,823 | 1,823 | ||||||||
Accretion | 238 | 121 | 359 | 117 | 61 | 178 | ||||||||
Other | — | 201 | 201 | — | 198 | 198 | ||||||||
Adjusted EBITDA | $ | 47,279 | 45,915 | 93,194 | 42,498 | 36,219 | 78,717 |
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | ||||||||||||||
SUPPLEMENTAL SCHEDULES | ||||||||||||||
(Unaudited) | ||||||||||||||
(Amounts in thousands) | ||||||||||||||
Third Quarter 2014 | Second Quarter 2014 | |||||||||||||
Wireless | Wireline | Wireless | Wireline | |||||||||||
Segment | Segment | Total | Segment | Segment | Total | |||||||||
Revenues | ||||||||||||||
Wireless | $ | 76,398 | 8,823 | 85,221 | 69,397 | 7,149 | 76,546 | |||||||
Data | — | 92,208 | 92,208 | — | 88,475 | 88,475 | ||||||||
Video | — | 38,328 | 38,328 | — | 34,478 | 34,478 | ||||||||
Voice | — | 24,968 | 24,968 | — | 24,900 | 24,900 | ||||||||
Total | 76,398 | 164,327 | 240,725 | 69,397 | 155,002 | 224,399 | ||||||||
Cost of goods sold | 24,021 | 52,880 | 76,901 | 23,500 | 48,882 | 72,382 | ||||||||
Contribution | 52,377 | 111,447 | 163,824 | 45,897 | 106,120 | 152,017 | ||||||||
Less SG&A | 5,336 | 67,447 | 72,783 | 5,894 | 63,923 | 69,817 | ||||||||
Less other expense | — | 560 | 560 | — | 1,052 | 1,052 | ||||||||
EBITDA | 47,041 | 43,440 | 90,481 | 40,003 | 41,145 | 81,148 | ||||||||
Share-based compensation | — | 2,153 | 2,153 | — | 2,193 | 2,193 | ||||||||
Accretion | 238 | 121 | 359 | 171 | 130 | 301 | ||||||||
Other | — | 201 | 201 | — | 829 | 829 | ||||||||
Adjusted EBITDA | $ | 47,279 | 45,915 | 93,194 | 40,174 | 44,297 | 84,471 |
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | ||||||||||||||
SUPPLEMENTAL SCHEDULES | ||||||||||||||
(Unaudited) | ||||||||||||||
(Amounts in thousands) | ||||||||||||||
Nine Months Ended September 30, 2014 | Nine Months Ended September 30, 2013 | |||||||||||||
Wireless | Wireline | Wireless | Wireline | |||||||||||
Segment | Segment | Total | Segment | Segment | Total | |||||||||
Revenues | ||||||||||||||
Wireless | $ | 208,312 | 24,208 | 232,520 | 135,009 | 23,535 | 158,544 | |||||||
Data | — | 268,296 | 268,296 | — | 262,803 | 262,803 | ||||||||
Video | — | 105,207 | 105,207 | — | 93,672 | 93,672 | ||||||||
Voice | — | 75,384 | 75,384 | — | 78,801 | 78,801 | ||||||||
Total | 208,312 | 473,095 | 681,407 | 135,009 | 458,811 | 593,820 | ||||||||
Cost of goods sold | 66,234 | 154,823 | 221,057 | 49,515 | 152,477 | 201,992 | ||||||||
Contribution | 142,078 | 318,272 | 460,350 | 85,494 | 306,334 | 391,828 | ||||||||
Less SG&A | 17,188 | 197,304 | 214,492 | 13,771 | 184,194 | 197,965 | ||||||||
Less other expense | — | 1,709 | 1,709 | — | 142 | 142 | ||||||||
EBITDA | 124,890 | 119,259 | 244,149 | 71,723 | 121,998 | 193,721 | ||||||||
Share-based compensation | 6,124 | 6,124 | — | 4,729 | 4,729 | |||||||||
Accretion | 585 | 376 | 961 | 237 | 223 | 460 | ||||||||
Other | — | 1,228 | 1,228 | — | 595 | 595 | ||||||||
Adjusted EBITDA | $ | 125,475 | 126,987 | 252,462 | 71,960 | 127,545 | 199,505 |
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | ||||||||||||||||||
WIRELINE SEGMENT SUPPLEMENTAL REVENUE SCHEDULES | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||
Third Quarter 2014 | Third Quarter 2013 | |||||||||||||||||
Business | Managed | Business | Managed | |||||||||||||||
Consumer | Services | Broadband | Total | Consumer | Services | Broadband | Total | |||||||||||
Revenues | ||||||||||||||||||
Wireless | $ | 7,989 | 834 | — | 8,823 | 7,581 | 785 | — | 8,366 | |||||||||
Data | 28,755 | 36,857 | 26,596 | 92,208 | 24,981 | 39,229 | 24,544 | 88,754 | ||||||||||
Video | 27,896 | 10,432 | — | 38,328 | 27,674 | 3,705 | — | 31,379 | ||||||||||
Voice | 7,972 | 11,657 | 5,339 | 24,968 | 8,647 | 9,952 | 5,232 | 23,831 | ||||||||||
Total | $ | 72,612 | 59,780 | 31,935 | 164,327 | 68,883 | 53,671 | 29,776 | 152,330 | |||||||||
(Amounts in thousands) | ||||||||||||||||||
Third Quarter 2014 | Second Quarter 2014 | |||||||||||||||||
Business | Managed | Business | Managed | |||||||||||||||
Consumer | Services | Broadband | Total | Consumer | Services | Broadband | Total | |||||||||||
Revenues | ||||||||||||||||||
Wireless | $ | 7,989 | 834 | — | 8,823 | 6,360 | 789 | — | 7,149 | |||||||||
Data | 28,755 | 36,857 | 26,596 | 92,208 | 27,313 | 35,554 | 25,608 | 88,475 | ||||||||||
Video | 27,896 | 10,432 | — | 38,328 | 26,871 | 7,607 | — | 34,478 | ||||||||||
Voice | 7,972 | 11,657 | 5,339 | 24,968 | 8,279 | 11,359 | 5,262 | 24,900 | ||||||||||
Total | $ | 72,612 | 59,780 | 31,935 | 164,327 | 68,823 | 55,309 | 30,870 | 155,002 | |||||||||
(Amounts in thousands) | ||||||||||||||||||
Nine Months Ended September 30, 2014 | Nine Months Ended September 30, 2013 | |||||||||||||||||
Business | Managed | Business | Managed | |||||||||||||||
Consumer | Services | Broadband | Total | Consumer | Services | Broadband | Total | |||||||||||
Revenues | ||||||||||||||||||
Wireless | $ | 21,840 | 2,368 | — | 24,208 | 21,307 | 2,228 | — | 23,535 | |||||||||
Data | 83,012 | 107,251 | 78,033 | 268,296 | 73,450 | 118,759 | 70,594 | 262,803 | ||||||||||
Video | 82,016 | 23,191 | — | 105,207 | 83,375 | 10,297 | — | 93,672 | ||||||||||
Voice | 24,696 | 34,757 | 15,931 | 75,384 | 27,318 | 35,532 | 15,951 | 78,801 | ||||||||||
Total | $ | 211,564 | 167,567 | 93,964 | 473,095 | 205,450 | 166,816 | 86,545 | 458,811 | |||||||||
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | |||||||||||||||||
KEY PERFORMANCE INDICATORS | |||||||||||||||||
(Unaudited) | |||||||||||||||||
September 30, 2014 | September 30, 2014 | ||||||||||||||||
as compared to | as compared to | ||||||||||||||||
September 30, | September 30, | June 30, | September 30, | June 30, | September 30, | June 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | |||||||||||
Wireline Segment | |||||||||||||||||
Consumer | |||||||||||||||||
Data | |||||||||||||||||
Cable modem subscribers | 117,000 | 114,800 | 115,600 | 2,200 | 1,400 | 1.9 | % | 1.2 | % | ||||||||
Video | |||||||||||||||||
Basic subscribers | 115,900 | 118,400 | 116,300 | (2,500 | ) | (400 | ) | (2.1 | )% | (0.3 | )% | ||||||
Digital programming tier subscribers | 64,200 | 68,100 | 65,200 | (3,900 | ) | (1,000 | ) | (5.7 | )% | (1.5 | )% | ||||||
HD/DVR converter boxes | 105,600 | 92,100 | 103,400 | 13,500 | 2,200 | 14.7 | % | 2.1 | % | ||||||||
Homes passed | 248,000 | 246,600 | 248,000 | 1,400 | — | 0.6 | % | — | % | ||||||||
Voice | |||||||||||||||||
Local access lines in service | 55,900 | 62,800 | 57,700 | (6,900 | ) | (1,800 | ) | (11.0 | )% | (3.1 | )% | ||||||
Local access lines in service on GCI facilities | 52,400 | 58,500 | 53,800 | (6,100 | ) | (1,400 | ) | (10.4 | )% | (2.6 | )% | ||||||
Business Services | |||||||||||||||||
Data | |||||||||||||||||
Cable modem subscribers | 14,200 | 14,000 | 14,200 | 200 | — | 1.4 | % | — | % | ||||||||
Video | |||||||||||||||||
Hotels and mini-headend subscribers | 19,800 | 19,800 | 20,600 | — | (800 | ) | — | % | (3.9 | )% | |||||||
Basic subscribers | 1,900 | 2,000 | 2,000 | (100 | ) | (100 | ) | (5.0 | )% | (5.0 | )% | ||||||
Total basic subscribers | 21,700 | 21,800 | 22,600 | (100 | ) | (900 | ) | (0.5 | )% | (4.0 | )% | ||||||
Voice | |||||||||||||||||
Local access lines in service | 47,400 | 49,400 | 48,200 | (2,000 | ) | (800 | ) | (4.0 | )% | (1.7 | )% | ||||||
Local access lines in service on GCI facilities | 34,200 | 34,800 | 35,000 | (600 | ) | (800 | ) | (1.7 | )% | (2.3 | )% | ||||||
Consumer and Business Services Combined | |||||||||||||||||
Wireless | |||||||||||||||||
Consumer Lifeline lines in service | 25,600 | 29,600 | 28,200 | (4,000 | ) | (2,600 | ) | (13.5 | )% | (9.2 | )% | ||||||
Consumer Non-Lifeline lines in service | 102,700 | 97,200 | 99,100 | 5,500 | 3,600 | 5.7 | % | 3.6 | % | ||||||||
Business Services Non-Lifeline lines in service | 18,600 | 17,900 | 18,500 | 700 | 100 | 3.9 | % | 0.5 | % | ||||||||
Total wireless lines in service | 146,900 | 144,700 | 145,800 | 2,200 | 1,100 | 1.5 | % | 0.8 | % |
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | ||||||||||||||||||||||
KEY PERFORMANCE INDICATORS | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
September 30, 2014 | September 30, 2014 | |||||||||||||||||||||
Three Months Ended | as compared to | as compared to | ||||||||||||||||||||
September 30, | September 30, | June 30, | September 30, | June 30, | September 30, | June 30, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | ||||||||||||||||
Wireline segment | ||||||||||||||||||||||
Consumer | ||||||||||||||||||||||
Video | ||||||||||||||||||||||
Average monthly revenue per subscriber | $ | 80.22 | $ | 77.64 | $ | 76.49 | $ | 2.58 | $ | 3.73 | 3.3 | % | 4.9 | % | ||||||||
Combined Consumer and Business Services | ||||||||||||||||||||||
Data | ||||||||||||||||||||||
Average monthly revenue per cable modem subscriber | $ | 80.20 | $ | 70.95 | $ | 76.69 | $ | 9.25 | $ | 3.51 | 13.0 | % | 4.6 | % | ||||||||
Wireless | ||||||||||||||||||||||
Average monthly revenue per subscriber | $ | 50.87 | $ | 49.22 | $ | 48.89 | $ | 1.65 | $ | 1.98 | 3.4 | % | 4.0 | % |
General Communication, Inc. | ||||||||||||||||
Non-GAAP Financial Reconciliation Schedule | ||||||||||||||||
(Unaudited, Amounts in Thousands) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | June 30, | September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2014 | 2013 | ||||||||||||
Net income | $ | 28,444 | 20,012 | 19,068 | 59,254 | 27,202 | ||||||||||
Income tax expense | 2,481 | 970 | 127 | 2,823 | 8,157 | |||||||||||
Income before income tax expense | 30,925 | 20,982 | 19,195 | 62,077 | 35,359 | |||||||||||
Other expense: | ||||||||||||||||
Interest expense (including amortization of deferred loan fees) | 17,848 | 17,522 | 18,170 | 54,229 | 51,850 | |||||||||||
Other | 563 | 180 | 1,049 | 1,709 | 230 | |||||||||||
Other expense | 18,411 | 17,702 | 19,219 | 55,938 | 52,080 | |||||||||||
Operating income | 49,336 | 38,684 | 38,414 | 118,015 | 87,439 | |||||||||||
Depreciation and amortization expense | 41,705 | 38,029 | 43,786 | 127,843 | 106,424 | |||||||||||
Other | (560 | ) | (195 | ) | (1,052 | ) | (1,709 | ) | (142 | ) | ||||||
EBITDA (Note 2) | 90,481 | 76,518 | 81,148 | 244,149 | 193,721 | |||||||||||
Share-based compensation | 2,153 | 1,823 | 2,193 | 6,124 | 4,729 | |||||||||||
Accretion | 359 | 178 | 301 | 961 | 460 | |||||||||||
Other | 201 | 198 | 829 | 1,228 | 595 | |||||||||||
Adjusted EBITDA (Note 1) | $ | 93,194 | 78,717 | 84,471 | 252,462 | 199,505 | ||||||||||
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, non-cash contribution adjustment, and other non-cash adjustments. | ||||||||||||||||
(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. |