Exhibit 99.1

 

May 7, 2008

 

John Lowber, (907) 868-5628; jlowber@gci.com

Bruce Broquet, (907) 868-6660; bbroquet@gci.com

David Morris, (907) 265-5396; dmorris@gci.com

 

FOR IMMEDIATE RELEASE

 

GCI REPORTS FIRST QUARTER 2008 FINANCIAL RESULTS

 

·                  Consolidated revenue of $134.7 million

·                  EBITDAS of $38.2 million

·                  Preliminary net income of $2.7 million or $0.04 per diluted share

·                  GCI closes $145 million incremental loan facility

·                  GCI closes fiber capacity transactions valued at $60 million

 

                                                ANCHORAGE, AK — GCI (NASDAQ:GNCMA) today reported first quarter 2008 revenues of $134.7 million, an increase of 7.7 percent over the first quarter of 2007. First quarter 2008 earnings before interest, taxes, depreciation, amortization and share based compensation expense (EBITDAS) totaled $38.2 million. EBITDAS increased $3.8 million or 10.8 percent from the first quarter of 2007. The increase in EBITDAS was attributable to strong performance in all of the company’s business segments.

 

                                                GCI’s preliminary first quarter 2008 net income is $2.7 million, or earnings per diluted share of $0.04. The quarterly net income amounts are preliminary as the company is determining the effect of an error in calculating depreciation in the initial year an asset is placed in service and for capitalizing interest on certain assets. The previous methods appear to be overly conservative potentially resulting in an overstatement of expenses and were not in conformance with generally accepted accounting principles (GAAP). A retroactive modification of these methods could result in an increase in previously reported net income. Revenues and EBITDAS are not affected. The amounts reported for the first quarter of 2008 include the computation of interest capitalization and depreciation in accordance with GAAP. These amounts may be subject to change as we finalize our analysis. The company’s preliminary first quarter net income compares to unaudited net income of $1.8 million, or earnings per diluted share of $0.03 in the same period of 2007.

 

                                                First quarter 2008 revenue increases from video, data and wireless were partially offset, as expected, by decreasing voice revenues when compared to the prior year.

 

                                                Revenues for the company increased $3.4 million, or 2.6 percent, over fourth quarter 2007 revenues of $131.3 million. First quarter EBITDAS of $38.2 million decreased 1.5 percent from $38.8 million in the fourth quarter of 2007.

 

                                                “GCI has a strong start in 2008 with both financial and strategic accomplishments,” said GCI president Ron Duncan. “I’m pleased to announce that shortly after the close of the first quarter we completed two important strategic goals. As expected we closed on a $145 million incremental addition to our senior financing facility. Our ability to do this in spite of the turbulent financial markets is a testament both to the underlying strength of the company and the skill and efforts of our financing team. Our five year business plan is now fully financed.”

 

                                                “Perhaps less expected by our investors, but of equal strategic and financial importance, we signed an agreement to provide fiber capacity to AT&T. In simple summary, we agreed to provide a large amount of diverse undersea fiber capacity between Alaska and the Lower 48 states to AT&T in a transaction which will bring more than $35 million in cash to GCI this year.”

 

 

 

                                                “Financial results for the quarter are strong, paced by solid customer metrics across all categories. Our consumer business had another blockbuster quarter and all of our business units, including network access continue to be strong, stable contributors to EBITDAS. We are off to a great start for the year and well on our way to meeting this year’s goals.”

 

                                                “Finally I’m pleased to note that in its recent order capping competitive carrier USF payments, the FCC included an exemption for those carriers that provide service to the residents of tribal lands and Alaska. The FCC’s recognition of the needs of rural areas is important to our rural wireless build-out. Over the next three years, we will deploy the first truly statewide mobile wireless network, seamlessly linking urban areas and small rural towns and villages.

 

                                                GCI reaffirms 2008 guidance for revenues of $550 million to $560 million and EBITDAS of more than $165 million. Additionally GCI anticipates cash receipts in excess of $45 million during 2008 as a result of fiber IRU agreements which are not otherwise reflected in current guidance. First quarter 2008 results exceeded our guidance for revenues of $130 million to $133 million. EBITDAS results for the first quarter were in line with our guidance. Second quarter revenues are expected to total $133 million to $136 million and EBITDAS is expected to exceed that of the first quarter.

 

Highlights

·                 GCI closed a $145 million incremental term loan facility on May 2, 2008. The loan amendment results in the re-pricing of the interest rate margin on the total facility from LIBOR plus 2.0 percent to LIBOR plus 4.25 percent and provides for certain loan covenant changes including an increase in the total debt leverage covenant to a maximum of 5.25 times EBITDAS until June 30, 2009. Thereafter the leverage covenant steps down to 5.0 times and further steps down to 4.50 times beginning in 2010. The loan facility is expected to fully finance the company’s five year capital plan.

 

·                 Subsequent to the close of the quarter GCI executed a binding contract to provide AT&T a large amount of undersea fiber optic capacity between Alaska and the lower 48 states. Under the agreement AT&T will receive a large initial increment of capacity on GCI’s two undersea fiber networks connecting Alaska with Washington and Oregon. AT&T was also granted options to acquire certain additional amounts of capacity in the future. GCI expects to receive cash payments in excess of $35 million from AT&T in connection with turn up of the initial capacity in 2008. Future payments for additional capacity are not expected to exceed $10 million. In addition AT&T will make certain payments to GCI associated with the operation and maintenance of GCI’s undersea fiber networks. GCI anticipates that the transaction will be accounted for as an IRU transfer with prepaid revenues to be recognized over the life of the agreement. The AT&T transaction when combined with the other completed fiber IRU contracts will result in the receipt of approximately $60 million in total value by GCI. GCI anticipates cash receipts in excess of $45 million during 2008 under these contracts.

 

·                 Consumer revenues totaled $61.4 million, an increase of 14.5 percent over the prior year and an increase of 5.9 percent over the fourth quarter of 2007. The increases were across all products and services.

 

·                 GCI local access lines increased by 2,800 over the fourth quarter of 2007. Consumer, network access and commercial local access lines totaled 122,900 at the end of the first quarter of 2008, representing an estimated 29 percent share of the total access lines market in Alaska. GCI began providing local access services on its own facilities in the Homer market during the first quarter of 2008.

 

 

 

·                 GCI has provisioned 68,900 consumer and commercial access lines on its own facilities at the end of the first quarter of 2008, an increase of 5,700 lines over the fourth quarter of 2007 and an increase of 22,400 lines when compared to the end of the first quarter of the prior year. The company had provisioned 46,500 consumer and commercial access lines on its own facilities at the end of the first quarter of 2007.

 

·                 GCI had 99,700 consumer and commercial cable modem access customers at the end of the first quarter of 2008, an increase of 3,200 over the 96,500 cable modem customers at the end of the fourth quarter 2007. Average monthly revenue per cable modem totaled $36.71 for the first quarter of 2008 as compared to $33.94 for the fourth quarter of 2007, an increase of 8.2 percent. The increase in average monthly revenues arises in part from customers upgrading to plans with increased levels of service.

 

·                 GCI had 80,200 wireless subscribers, an increase of 2,900 subscribers from the fourth quarter of 2007.

 

·                 The launch date of the Intelsat Galaxy 18 communications satellite is now scheduled for May 21, 2008. Galaxy 18 will replace the company’s existing transponder capacity on Galaxy XR when it reaches its proper orbit and is ready for service. Galaxy XR’s service life has been extended and is now expected to end on or about July 7, 2008.

 

·                 GCI did not repurchase any shares during the first quarter and its repurchase program in currently suspended. GCI’s amended loan agreement prohibits share repurchases when the company’s total debt leverage is greater than four times EBITDAS. GCI hopes to resume share repurchases as soon as free cash flows and debt covenants allow it to do so.

 

Consumer

                                                Consumer revenues increased 14.5 percent to $61.4 million as compared to $53.6 million in the first quarter of 2007 and increased 5.9 percent from the fourth quarter of 2007. The increase in revenue is due to increases in revenues from all consumer product offerings of voice, video, data and wireless services.

 

                                                Consumer voice revenues were up 4.3 percent over the prior year and 3.0 percent over the fourth quarter of 2007. Long distance minutes decreased, as expected, from the prior year. Consumer local access lines in service for the first quarter were up approximately 9,400 lines compared to the first quarter of 2007. Access lines in the first quarter increased by 2,400 over the fourth quarter of 2007. Voice revenues continue to increase due to customers taking voice services in existing and newly opened markets.

 

                                                GCI serves 55,500 consumer access lines on its own facilities, an increase of 4,800 lines from the fourth quarter of 2007. Using an average lease rate of $25.00 per line per month these access lines represent avoided costs with annual run rate savings of approximately $16.6 million.

 

                                                Consumer video revenues increased 8.5 percent over the prior year and were up 2.8 percent from the fourth quarter of 2007. The increase in revenue is due in part to an increase in video subscribers purchasing higher tier services including high definition or digital service and renting high definition/digital video recorders. Consumer video subscribers increased to 130,700, an increase of 6,200 subscribers over the first quarter of 2007 and an increase of 2,700 subscribers over the fourth quarter of 2007.

 

 

 

                                                Consumer data revenues increased 27.0 percent over the prior year and 8.8 percent over the fourth quarter of 2007. The increase in consumer data revenues is due to an increase in cable modem customers and an increase in average monthly revenue per modem subscriber. The increase in average monthly revenues arises in part from customers upgrading to plans with increased levels of service. GCI added 9,600 consumer cable modem customers over the prior year and 2,900 customers during the first quarter of 2008.

 

                                                Consumer wireless revenues increased to $13.8 million, an increase of 29.3 percent over the first quarter of 2007. The increase in wireless revenues is primarily due to an increase in wireless subscribers, including those of the company’s wireless subsidiary, Alaska DigiTel.

 

Network Access

                                                Network access revenues decreased 2.9 percent to $39.2 million as compared to $40.3 million in the first quarter of 2007 and increased 1.0 percent over the fourth quarter of 2007.

 

                                                Voice revenues decreased 10.2 percent from the prior year and decreased 1.1 percent from the fourth quarter of 2007. The decrease in voice revenues from the prior year is primarily due to the effects of rate reductions for other common carriers and the transition of voice traffic to dedicated data networks. Network access minutes decreased 0.4 percent to 314.6 million minutes for the first quarter of 2008 as compared to the first quarter of 2007. Minutes for the first quarter of 2008 increased 6.4 percent from the fourth quarter of 2007. The increase in minutes over the fourth quarter of 2007 is due to a shift in carrier traffic back to the company’s network by one of our carrier customers.

 

                                                Data revenues for the first quarter of 2008 were up 12.0 percent when compared to first quarter 2007 and up 6.0 percent from the fourth quarter of 2007. The increase in data revenues over the prior year is primarily due to an increase in circuits sold and from other common carriers moving switched voice services to data networks.

 

Commercial

                                                Commercial revenues increased 10.0 percent to $26.6 million as compared to $24.2 million in the first quarter of 2007 and decreased 1.5 percent from $27.0 million in the fourth quarter of 2007. Commercial revenues increased from the prior year primarily due to an increase in wireless and data revenues. Revenues declined from the fourth quarter of 2007 primarily due to seasonal decreases in video advertising and special project revenues.

 

                                                The decrease in year over year voice revenues was primarily due to a decrease in average revenue per minute. Commercial long distance minutes for the first quarter of 2008 were relatively unchanged from the prior year. Sequentially commercial minutes increased 6.8 percent over the fourth quarter of 2007. GCI increased commercial local access lines by 1,400 over the first quarter of 2007 and 400 commercial local access lines when compared to the fourth quarter of 2007.

 

                                                Video revenues increased 3.1 percent on a year-over-year basis and declined 13.3 percent sequentially due to seasonal fluctuations. The seasonal decline is primarily attributed to a decrease in advertising revenues.

 

                                                Commercial data network revenues in the first quarter of 2008 totaled $16.2 million, an increase of 16.2 percent when compared to $14.0 million in the first quarter of 2007 and decreased $0.4 million or 2.2 percent, when compared to $16.6 million in the fourth quarter of 2007

 

 

 

                                                Commercial data network revenues are comprised of $9.2 million in monthly recurring charges for data services and $7.0 million in charges billed on a time and materials basis largely for personnel providing on site customer support. This latter category can vary significantly based on project activity. For the first quarter of 2008 monthly recurring data revenues increased by approximately $0.2 million when compared to both the first and fourth quarters of 2007. Time and material charges increased by $2.0 million as compared to the first quarter of 2007 and decreased by $0.6 million as compared to the fourth quarter of 2007.

 

Managed Broadband

                                                Managed broadband revenues totaled $7.5 million in the first quarter of 2008, an increase of 8.8 percent from $6.9 million in the first quarter of 2007. Revenue for the first quarter was unchanged from the $7.5 million reported in the fourth quarter of 2007.

 

                                                GCI is in the process of deploying service for two new large customers, Aleutian East Borough School District and the North Slope Borough School District. Annual revenue for these two customers is expected to total approximately $2.7 million. Service for both contracts are expected to begin on July 1, 2008.

 

Other Items

                                                During the first quarter of 2008 GCI’s capital expenditures totaled $52.7 million as compared to $47.8 million in the fourth quarter of 2007. GCI’s capital expenditures include those of Alaska DigiTel.

 

                                                GCI will hold a conference call to discuss the quarter’s results on Thursday, May 8, 2008 beginning at 2 p.m. (Eastern). To access the briefing on May 8, dial 888-592-9602 (International callers should dial 210-795-2680) and identify your call as “GCI.” In addition to the conference call, 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 800-216-4459, access code 7461 (International callers should dial 402-220-3886.)

 

                                                GCI is the largest telecommunications company in Alaska. The company’s cable plant, which provides voice, video, and broadband data services, passes 90 percent of Alaska households. GCI operates Alaska’s most extensive terrestrial/subsea fiber optic network, which by the end of 2008, will connect not only Anchorage but also Fairbanks, and Juneau/Southeast to the lower 48 states with a diversely routed, protected fiber network. The company’s satellite network provides communications services to small towns and villages throughout rural Alaska. GCI is now in the process of constructing Alaska’s first truly statewide mobile wireless network, which will seamlessly link urban and rural Alaska for the first time in the state’s history.

 

A pioneer in bundled services, GCI is the top provider of voice, data, and video 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 the company can be found at www.gci.com.

 

                                                The foregoing contains forward-looking statements regarding the company’s expected results that are based on management’s expectations as well as on a number of assumptions concerning future events. Actual results may 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 Form 10-K and 10-Q filed with the Securities and Exchange Commission.

 

#    #    #

 

 

 

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

		(Preliminary)			December
(Amounts in thousands)		March 31,			31,
		2008			2007
Assets
Current assets:
Cash and cash equivalents		$	17,165		13,074
Receivables		92,154			97,913
Less allowance for doubtful receivables		1,551			1,657
Net receivables		90,603			96,256
Prepaid expenses		6,563			5,356
Inventories		3,814			2,541
Deferred income taxes		3,755			5,734
Other current assets		679			717
Total current assets		122,579			123,678
Property and equipment in service, net of depreciation		518,140			502,426
Construction in progress		84,950			69,409
Net property and equipment		603,090			571,835
Cable certificates		191,565			191,565
Goodwill		42,181			42,181
Wireless licenses		25,757			25,757
Other intangible assets, net of amortization		11,873			11,769
Deferred loan and senior notes costs, net of amortization		5,985			6,202
Other assets		9,508			9,399
Total other assets		286,869			286,873
Total assets		$	1,012,538		982,386

 

(Continued)

 

 

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Continued)

 

		(Preliminary)			December
		March 31,			31,
(Amounts in thousands)		2008			2007
Liabilities, Minority Interest, and Stockholders’ Equity
Current liabilities:
Current maturities of obligations under long-term debt and capital leases		$	2,382		2,375
Accounts payable		41,847			35,747
Deferred revenue		17,385			16,600
Accrued payroll and payroll related obligations		15,263			16,329
Accrued liabilities		8,326			7,536
Accrued interest		3,076			8,927
Subscriber deposits		956			877
Total current liabilities		89,235			88,391
Long-term debt		555,667			536,115
Obligations under capital leases, excluding current maturities		2,306			2,290
Obligation under capital lease due to related party, excluding current maturity		441			469
Deferred income taxes		84,440			83,481
Other liabilities		17,175			13,241
Total liabilities		749,264			723,987
Minority interest		6,528			6,478
Commitments and contingencies
Stockholders’ equity:
Common stock (no par):
Class A. Authorized 100,000 shares; issued 49,915 and 50,437 shares at March 31, 2008 and December 31, 2007, respectively; outstanding 49,444 and 49,425 shares at March 31, 2008 and December 31, 2007, respectively		150,616			155,980
Class B. Authorized 10,000 shares; issued 3,256 and 3,257 shares at March 31, 2008 and December 31, 2007, respectively; outstanding 3,254 and 3,255 shares at March 31, 2008 and December 31, 2007, respectively; convertible on a share-per-share basis into Class A common stock		2,750			2,751
Less cost of 473 Class A and Class B common shares held in treasury at March 31, 2008 and December 31, 2007		(3,450		)	(3,448)
Paid-in capital		22,180			20,132
Retained earnings		84,650			76,506
Total stockholders’ equity		256,746			251,921
Total liabilities, minority interest, and stockholders’ equity		$	1,012,538		982,386

 

 

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

 

		(Unaudited)
		Three Months Ended
		March 31,
					2007
(Amounts in thousands, except per share amounts)		2008 (preliminary)			(as amended)
Revenues		$	134,674		125,031
Cost of goods sold (exclusive of depreciation and amortization shown separately below)		51,179			47,990
Selling, general and administrative expenses		46,538			43,605
Depreciation and amortization expense		22,470			21,416
Operating income		14,487			12,020
Other income (expense):
Interest expense		(8,685		)	(8,700	)
Loan and senior notes fees		(223		)	(180	)
Interest income		81			184
Minority interest		(50		)	13
Other expense, net		(8,877		)	(8,683	)
Income before income tax expense		5,610			3,337
Income tax expense		2,931			1,525
Net income available to common shareholders		$	2,679		1,812
Basic net income available to common shareholders per common share		$	0.05		0.03
Diluted net income available to common shareholders per common share		$	0.04		0.03
Common shares used to calculate basic EPS		52,259			53,260
Common shares used to calculate diluted EPS		52,906			54,953

 

Note:

 

We reclassified $4.9 million of network maintenance and operations expense from selling, general and administrative expense to Cost of Goods Sold for the three months ended March 31, 2007 to make our income statement classification more consistent with that of our peers.

 

 

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES

SUPPLEMENTAL SCHEDULES

(Unaudited)

(Amounts in thousands)

 

		First Quarter 2008											First Quarter 2007 (as amended)
					Network				Managed						Network				Managed
		Consumer			Access		Commercial		Broadband		Totals		Consumer		Access		Commercial		Broadband		Totals
Revenues
Voice		$	11,844		21,942		7,214		—		41,000		11,353		24,437		7,857		—		43,647
Video		25,647			—		1,820		—		27,467		23,631		—		1,766		—		25,397
Data		10,096			16,839		16,209		7,526		50,670		7,947		15,034		13,954		6,920		43,855
Wireless		13,796			393		1,348		—		15,537		10,672		856		604		—		12,132
Total		61,383			39,174		26,591		7,526		134,674		53,603		40,327		24,181		6,920		125,031
Cost of goods sold (exclusive of depreciation and amortization)		24,701			10,255		14,071		2,284		51,311		21,955		11,245		12,265		2,525		47,990
Contribution		36,682			28,919		12,520		5,242		83,363		31,648		29,082		11,916		4,395		77,041
Less SG&A		25,118			9,431		8,818		3,039		46,406		22,059		9,482		9,078		2,986		43,605
Add other income (expense)		(22		)	(19	)	(9	)	—		(50	)	6		5		2		—		13
EBITDA		11,542			19,469		3,693		2,203		36,907		9,595		19,605		2,840		1,409		33,449
Add share-based compensation		485			415		262		98		1,260		341		332		229		83		985
EBITDAS		$	12,027		19,884		3,955		2,301		38,167		9,936		19,937		3,069		1,492		34,434

 

Note:

We reclassified $4.9 million of network maintenance and operations expense from selling, general and administrative expense to Cost of Goods Sold for the three months ended March 31, 2007 to make our income statement classification more consistent with that of our peers.

 

 

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES

SUPPLEMENTAL SCHEDULES

(Unaudited)

(Amounts in thousands)

 

		First Quarter 2008											Fourth Quarter 2007
					Network				Managed						Network				Managed
		Consumer			Access		Commercial		Broadband		Totals		Consumer		Access		Commercial		Broadband		Totals
Revenues
Voice		$	11,844		21,942		7,214		—		41,000		11,501		22,192		7,021		—		40,714
Video		25,647			—		1,820		—		27,467		24,955		—		2,100		—		27,055
Data		10,096			16,839		16,209		7,526		50,670		9,278		15,882		16,576		7,549		49,285
Wireless		13,796			393		1,348		—		15,537		12,242		704		1,300		—		14,246
Total		61,383			39,174		26,591		7,526		134,674		57,976		38,778		26,997		7,549		131,300
Cost of goods sold (exclusive of depreciation and amortization)		24,701			10,255		14,071		2,284		51,311		21,291		11,499		14,849		2,378		50,017
Contribution		36,682			28,919		12,520		5,242		83,363		36,685		27,279		12,148		5,171		81,283
Less SG&A		25,118			9,431		8,818		3,039		46,406		22,640		9,804		8,784		2,754		43,982
Add other income (expense)		(22		)	(19	)	(9	)	—		(50	)	4		4		2		—		10
EBITDA		11,542			19,469		3,693		2,203		36,907		14,049		17,479		3,366		2,417		37,311
Add share-based compensation		485			415		262		98		1,260		518		531		288		117		1,454
EBITDAS		$	12,027		19,884		3,955		2,301		38,167		14,567		18,010		3,654		2,534		38,765

 

Note:

We reclassified $4.2 million of network maintenance and operations expense from selling, general and administrative expense to Cost of Goods Sold for the three months ended December 31, 2007 to make our income statement classification more consistent with that of our peers.

 

 

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES

KEY PERFORMANCE INDICATORS

(Unaudited)

 

								March 31, 2008				March 31, 2008
								as compared to				as compared to
		March 31,		March 31,		December 31,		March 31,		December 31,		March 31,		December 31,
		2008		2007		2007		2007		2007		2007		2007
Consumer
Voice
Long-distance subscribers		90,400		89,600		89,900		800		500		0.9	%	0.6	%
Total local access lines in service		76,800		67,400		74,400		9,400		2,400		13.9	%	3.2	%
Local access lines in service on GCI facilities		55,500		37,400		50,700		18,100		4,800		48.4	%	9.5	%
Video
Basic subscribers		130,700		124,500		128,000		6,200		2,700		5.0	%	2.1	%
Digital programming tier subscribers		68,100		60,600		65,800		7,500		2,300		12.4	%	3.5	%
HD/DVR converter boxes		55,400		34,600		50,200		20,800		5,200		60.1	%	10.4	%
Homes passed		225,700		220,100		224,700		5,600		1,000		2.5	%	0.4	%
Data
Cable modem subscribers		90,900		81,300		88,000		9,600		2,900		11.8	%	3.3	%
Wireless
Wireless lines in service		73,000		60,000		70,000		13,000		3,000		21.7	%	4.3	%
Network Access Services
Data:
Total ISP access lines in service		2,600		3,100		2,600		(500	)	—		-16.1	%	0.0	%
Commercial
Voice:
Long-distance subscribers		10,400		11,100		10,500		(700	)	(100	)	-6.3	%	-1.0	%
Total local access lines in service		43,500		42,100		43,100		1,400		400		3.3	%	0.9	%
Local access lines in service on GCI facilities		13,400		9,100		12,500		4,300		900		47.3	%	7.2	%
Video
Hotels and mini-headend subscribers		14,000		13,600		13,400		400		600		2.9	%	4.5	%
Basic subscribers		2,000		2,100		1,900		(100	)	100		-4.8	%	5.3	%
Total basic subscribers		16,000		15,700		15,300		300		700		1.9	%	4.6	%
Data
Cable modem subscribers		8,800		8,000		8,500		800		300		10.0	%	3.5	%
Wireless
Wireless lines in service		7,200		6,200		7,300		1,000		(100	)	16.1	%	-1.4	%
Broadband
SchoolAccess® customers		51		48		51		3		—		6.3	%	0.0	%
ConnectMD® customers		33		21		21		12		12		57.1	%	57.1	%

 

 

											March 31, 2008						March 31, 2008
		Three Months Ended									as Compared to						as Compared to
		March 31,			March 31,			December 31,			March 31,			December 31,			March 31,		December 31,
		2008			2007			2007			2007			2007			2007		2007
Consumer
Voice
Long-distance minutes carried (in millions)		33.7			34.2			34.8			(0.5		)	(1.1		)	-1.5	%	-3.2	%
Video
Average monthly gross revenue per subscriber		$	66.09		$	63.38		$	65.44		$	2.71		$	0.65		4.3	%	1.0	%
Wireless
Average monthly gross revenue per subscriber		$	56.76		$	53.59		$	59.18		$	3.17		$	(2.42	)	5.9	%	-4.1	%
Network Access Services
Voice
Long-distance minutes carried (in millions)		314.6			315.8			295.6			(1.2		)	19.0			-0.4	%	6.4	%
Commercial
Voice:
Long-distance minutes carried (in millions)		32.8			32.9			30.7			(0.1		)	2.1			-0.3	%	6.8	%
Total
Long-distance minutes carried (in millions)		381.1			382.9			361.1			(1.8		)	20.0			-0.5	%	5.5	%