Alaska Communications Systems 8-K Alaska Communications Reports Strong 4Q and Year-End 2014 Results

Exhibit 99.1

Alaska Communications Reports Strong 4Q and Year-End 2014 Results

-Achieved 2014 Guidance with Adjusted EBITDA of $92.6 million and revenues of $314.9 million-

-Full year Total Service and Other Revenue increased 8.0 percent-

-Full year Total Broadband Revenue increased 10.4 percent-

-Recent sale of wireless operations will bring leverage ratio to one of lowest in industry-

ANCHORAGE, Alaska--(BUSINESS WIRE)--March 4, 2015--Alaska Communications Systems Group, Inc. (NASDAQ:ALSK) today reported financial results for its fourth quarter and full year ended Dec. 31, 2014.

“Our 2014 results reflect stellar performance to a solid business plan. We have built and continue to expand our broadband and IT managed service franchise in a growing Alaska market. The sale of our wireless operations, which closed Feb. 2, 2015, was a bold strategic move. This transaction has eliminated the wireless overhang on our valuation, reduced our debt, and will bring our leverage ratio to one of the lowest in our industry.

“We enter 2015 with good business momentum, continuing our strong performance in broadband and IT managed services. Our margins will strengthen through the course of the year as we achieve synergies and remove costs associated with the wireless operations. We have turned a page in our journey and look forward to delivering significant value creation for our shareholders,” Anand Vadapalli, president and CEO of Alaska Communications, said.

Revenue Highlights: Year over Year Fourth Quarter

• Total service and other:
  • Revenue increased to $53.5 million from $50.5 million, up 5.9 percent
  • Total broadband revenue reached $17.5 million from $16.2 million, up 8.3 percent
• Business and wholesale service:
  • Revenue grew to $27.8 million from $25.6 million, up 8.7 percent
  • Broadband revenues reached $11.1 from $10.5, up 5.8 percent
• Consumer service:
  • Revenue grew to $10.3 million from $10.1 million, increasing 1.7 percent
  • Broadband revenues increased to $6.4 million from $5.7 million, up 13.0 percent

Earnings Highlights: Fourth Quarter and Year ended Dec. 31, 2014 compared to Dec. 31, 2013

• Adjusted EBITDA increased 34.0 percent to $22.3 million from $16.6 million, bringing the year to $92.6 million.
• Total operating revenue increased 1.6 percent to $77.5 million from $76.3 million, bringing the year to $314.9 million.
• Free Cash Flow was $3.4 million for the quarter and $16.2 million for the year.

Balance Sheet Highlights

• Cash remained strong at $31.7 million at Dec. 31, 2014, and with the closing of the wireless transaction, we are expecting higher cash balances in the first half of 2015.
• Deleveraging continues with total debt reductions during the year of $24.4 million to $436.4 million at Dec. 31, 2014.
• On Feb. 2, 2015, debt was further reduced by an additional $241 million and cash was increased by $10 million from the sale of the wireless operations.

Wayne Graham, Alaska Communications chief financial officer, said, “We accomplished our goal of positioning the company to achieve one of the lowest leverage ratios among operators in our industry by using a substantial portion of the proceeds from the sale of the wireless operations to pay down debt. We are performing to a plan to achieve our operational synergies from the sale of the wireless business, and our outlook for future performance is strong. Today, we are increasing our target run rate adjusted EBITDA exiting 2015 from $54 million provided at the time of the wireless sale to a range of $54 million to $56 million. We are poised to generate significant value for our shareholders.”

2015 Guidance:

Management’s focus is continued top line performance, steady deleveraging and achieving run rate adjusted EBITDA exiting 2015 through targeted synergies. Guidance for 2015 is as follows.

• Total Wireline Revenue of approximately $220 million
• Run rate Adjusted EBITDA exiting 2015 of $54 million to $56 million
• Capital expenditures range of $34 million to $36 million, with $16 million of success based capital
• Net debt at year end of approximately $159 million, resulting in our having one of the lowest leverage ratios in our industry

Investors are encouraged to listen to the earnings conference call and review page 16 of the earnings call presentation for a better understanding of guidance during this transition year.

Conference Call

The Company will host a conference call and live webcast on Thursday, March 5, 2015 at 5:00 p.m. Eastern Time to discuss the results. The live webcast will include a slide presentation. Parties in the United States and Canada can access the call at 1-888-554-1422 and enter pass code 563023. All other parties can access the call at 1-719-457-2663.

The live webcast of the conference call will be accessible from the "Events Calendar" section of the Company's website (www.alsk.com). The webcast will be archived for a period of 90 days. A telephonic replay of the conference call will also be available two hours after the call and will run until April 6, 2015 at 4:00 p.m. Eastern Time. To hear the replay, parties in the United States and Canada can call 1-888-203-1112 and enter pass code 1673988. All other parties can call 1-719-457-0820 and enter pass code 1673988.

About Alaska Communications

Alaska Communications (NASDAQ: ALSK) is a leading provider of advanced broadband and IT managed service solutions for businesses and consumers in Alaska. The Company operates a highly reliable, advanced statewide data and voice network with the latest technology and the most diverse undersea fiber optic system connecting Alaska to the contiguous United States. For more information, visit http://www.alaskacommunications.com or http://www.alsk.com.

Non-GAAP Measures

In an effort to provide investors with additional information regarding our financial results, in particular with regards to our liquidity and capital resources, we have disclosed certain non-GAAP financial information such as Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow, which management utilizes to assess performance and believes provides useful information to investors. The definition of these non-GAAP measures are on Schedules 4 and 5 to this press release. Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow are non-GAAP measures and should not be considered a substitute for net cash provided by operating activities and other measures of financial performance recorded in accordance with GAAP. Reconciliations of our non-GAAP measures to our nearest GAAP measures can be found on our website at http://www.alsk.com in the investment data section. Other companies may not calculate non-GAAP measures in the same manner as ACS.

Forward-Looking Statements

This press release includes certain "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's beliefs as well as on a number of assumptions concerning future events made using information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside ACS' control. Such factors include, without limitation, Universal Service Fund changes adverse economic conditions, adverse conditions in the credit markets impacting the cost, including interest rates, and/or availability of financing, and the effects of competition in our markets, the Company’s ability to compete, manage, integrate, market, maintain, and attract sufficient customers for its products and services, adverse changes in labor matters, including workforce levels, labor negotiations, and benefits costs, disruption of our supplier’s provisioning of critical products or services, the impact of natural or man-made disasters, changes in Company's relationships with large customers, unforeseen changes in public policies, and changes in accounting policies, which could result in an impact on earnings. For further information regarding risks and uncertainties associated with ACS' business, please refer to the Company's SEC filings, including, but not limited to, the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of the Company's SEC filings may be obtained by contacting its investor relations department at (907) 564-7556 or by visiting its investor relations website at www.alsk.com.

										Schedule 1
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONSOLIDATED SCHEDULE OF OPERATIONS
(Unaudited, In Thousands Except Per Share Amounts)
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
		2014			2013			2014			2013
Operating revenues:
Operating revenues, non-affiliates	$	75,886		$	74,489		$	307,917		$	345,611
Operating revenues, affiliates *		1,623			1,778			6,946			3,313
Total operating revenues		77,509			76,267			314,863			348,924
Operating expenses:
Cost of services and sales, non-affiliates		32,580			32,712			123,854			138,124
Cost of services and sales, affiliates *		13,821			13,199			57,116			25,158
Selling, general & administrative		26,472			27,317			101,398			111,034
Depreciation and amortization		6,733			8,900			32,583			42,191
(Gain) loss on disposal of assets, net		(486	)		2,177			126			(207,755	)
Loss on impairment of goodwill		5,986			-			5,986			-
Loss on impairment of equity investment		-			1,267			-			1,267
Earnings from equity method investments		(6,713	)		(9,995	)		(35,960	)		(18,056	)
Total operating expenses		78,393			75,577			285,103			91,963
Operating (loss) income		(884	)		690			29,760			256,961
Other income and (expense):
Interest expense		(8,266	)		(9,820	)		(34,410	)		(39,790	)
Loss on extinguishment of debt		-			-			-			(2,370	)
Interest income		41			16			83			53
Other		-			-			-			(13	)
Total other income and (expense)		(8,225	)		(9,804	)		(34,327	)		(42,120	)
Income (loss) before income tax (expense) benefit		(9,109	)		(9,114	)		(4,567	)		214,841
Income tax (expense) benefit		3,751			4,426			1,787			(56,370	)
Net (loss) income	$	(5,358	)	$	(4,688	)	$	(2,780	)	$	158,471
Net (loss) income per share:
Net (loss) income applicable to common shares	$	(5,358	)	$	(4,688	)	$	(2,780	)	$	158,471
Tax-effected expense attributable to convertible notes		-			-			-			5,813
Net (loss) income assuming dilution	$	(5,358	)	$	(4,688	)	$	(2,780	)	$	164,284
Basic	$	(0.11	)	$	(0.10	)	$	(0.06	)	$	3.37
Diluted	$	(0.11	)	$	(0.10	)	$	(0.06	)	$	2.78
Basic and Diluted	$	(0.11	)	$	(0.10	)	$	(0.06	)	$	3.37
Weighted average shares outstanding:
Basic		49,540			48,577			49,334			47,092
Diluted		49,540			48,577			49,334			59,107

* Affiliate balances are related to activity with our equity method investees TekMate and AWN. The remaining interest in TekMate was purchased on January 31, 2014 at which time it became a wholly owned subsidiary.

				Schedule 2
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited, In Thousands Except Per Share Amounts)
	December 31,			December 31,
Assets		2014			2013
Current assets:
Cash and cash equivalents	$	31,709		$	43,039
Restricted cash		467			467
Accounts receivable-trade, non-affiliates, net		30,900			34,066
Materials and supplies		4,321			10,131
Prepayments and other current assets		6,575			7,300
Deferred income taxes		104,245			7,144
Assets held-for-sale		9,565			-
Total current assets		187,782			102,147
Property, plant and equipment		1,333,134			1,344,949
Less: accumulated depreciation and amortization		(976,401	)		(992,936	)
Property, plant and equipment, net		356,733			352,013
Goodwill		-			4,650
Debt issuance costs		4,469			6,929
Deferred income taxes		-			14,107
Equity method investments		252,067			266,972
Non-current assets held-for-sale		14,664			-
Other assets		301			502
Total assets	$	816,016		$	747,320
Liabilities and Stockholders' Equity (Deficit)
Current liabilities:
Current portion of long-term obligations	$	15,521		$	14,256
Accounts payable, accrued and other current liabilities, non-affiliates		54,373			55,475
Accounts payable, accrued and other current liabilities, affiliates, net *		4,853			14,309
Advance billings and customer deposits		4,490			9,104
Liabilities held-for-sale		18,728			-
Total current liabilities		97,965			93,144
Long-term obligations, net of current portion		418,447			442,001
Deferred income taxes		81,267			-
Other long-term liabilities		24,370			16,947
Non-current liabilities held-for-sale		2,107			-
Deferred AWN capacity revenue, net of current portion		56,734			59,965
Total liabilities		680,890			612,057
Commitments and contingencies
Stockholders' equity (deficit):
Common stock, $.01 par value; 145,000 authorized		497			487
Additional paid in capital		154,368			152,193
Accumulated deficit		(14,588	)		(11,808	)
Accumulated other comprehensive loss		(5,151	)		(5,609	)
Total stockholders' equity		135,126			135,263
Total liabilities and stockholders' equity	$	816,016		$	747,320

* Affiliate balances are related to activity with our equity method investees TekMate and AWN. The remaining interest in TekMate was purchased on January 31, 2014 at which time it became a wholly owned subsidiary.

										Schedule 3
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited, In Thousands)
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
		2014			2013			2014			2013
Cash Flows from Operating Activities:
Net (loss) income	$	(5,358	)	$	(4,688	)	$	(2,780	)	$	158,471
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization		6,733			8,900			32,583			42,191
Gain on sale/contribution of asset to AWN		-			-			-			(210,873	)
(Gain) loss on the disposal of assets, net		(486	)		2,177			126			3,118
Loss on impairment of goodwill		5,986			-			5,986			-
Loss on the impairment of equity investment		-			1,267			-			1,267
Gain on ineffective hedge adjustment		(273	)		-			(273	)		(785	)
Amortization of debt issuance costs and debt discount		1,178			1,178			5,104			6,932
Amortization of ineffective hedge		337			359			1,613			2,307
Amortization of deferred AWN capacity revenue		(814	)		(774	)		(3,151	)		(1,512	)
Stock-based compensation		634			592			2,511			2,860
Deferred income tax expense (benefit)		(3,755	)		(3,828	)		(2,047	)		56,370
Provision for uncollectible accounts		387			1,042			3,329			1,847
Earnings from equity method investments		(6,713	)		(9,995	)		(35,960	)		(18,056	)
Cash distribution from equity method investments		6,713			12,455			35,960			17,844
Other non-cash (income) expense, net		(82	)		67			(466	)		283
Changes in operating assets and liabilities		16,168			(653	)		18,110			5,443
Net cash provided by operating activities		20,655			8,099			60,645			67,707
Cash Flows from Investing Activities:
Capital expenditures		(12,507	)		(20,424	)		(46,423	)		(47,738	)
Capitalized interest		(728	)		(635	)		(2,810	)		(1,926	)
Change in unsettled capital expenditures		(10,080	)		4,768			(11,380	)		1,492
Proceeds on sale of assets		-			-			136			4,747
Proceeds on sale/contribution of asset to AWN		-			-			-			100,000
Return of capital from equity investment		5,787			-			14,073			-
TekMate acquisition, net of cash received		-			-			(826	)		-
Net change in short-term investments		-			-			-			2,037
Change in unsettled acquisition costs		-			-			-			(3,345	)
Net change in restricted accounts		-			15			-			3,408
Net cash (used) provided by investing activities		(17,528	)		(16,276	)		(47,230	)		58,675
Cash Flows from Financing Activities:
Repayments of long-term debt		(397	)		(2,183	)		(24,419	)		(99,565	)
Debt issuance costs		-			-			-			(206	)
Payment of withholding taxes on stock-based compensation		(7	)		(6	)		(593	)		(638	)
Proceeds from issuance of common stock		135			110			267			227
Net cash used by financing activities		(269	)		(2,079	)		(24,745	)		(100,182	)
Change in cash and cash equivalents		2,858			(10,256	)		(11,330	)		26,200
Cash and cash equivalents, beginning of period		28,851			53,295			43,039			16,839
Cash and cash equivalents, end of period	$	31,709		$	43,039		$	31,709		$	43,039
Supplemental Cash Flow Data:
Interest paid	$	9,526		$	9,986		$	31,562		$	35,187
Cash paid on extinguishment of hedging instrument	$	-		$	-		$	-		$	4,073
Income tax paid	$	40		$	6		$	260		$	6
Supplemental Non-cash Transactions:
Property acquired under capital leases	$	1,487		$	188		$	1,877		$	171
Additions to ARO asset	$	63		$	49		$	369		$	229
Exchange of debt with common stock	$	-		$	-		$	-		$	6,000
Non-cash acquisition purchase price, net of cash received	$	-		$	-		$	956		$	-

										Schedule 4
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
ADJUSTED EBITDA
(Unaudited, In Thousands)
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
		2014			2013			2014			2013
Net (loss) income	$	(5,358	)	$	(4,688	)	$	(2,780	)	$	158,471
Add (subtract):
Interest expense		8,266			9,820			34,410			39,790
Loss on extinguishment of debt		-			-			-			2,370
Interest income		(41	)		(16	)		(83	)		(53	)
Depreciation and amortization		6,733			8,900			32,583			42,191
Loss on the impairment of equity investment		-			1,267			-			1,267
Loss on impairment of goodwill		5,986			-			5,986			-
Loss on sale of short-term investments		-			-			-			13
(Gain) loss on disposal of assets, net		(486	)		2,177			126			3,118
(Earnings) loss from equity method investment in TekMate		-			(96	)		(12	)		(93	)
Earnings from equity method investment in AWN		(6,713	)		(9,899	)		(35,948	)		(17,963	)
Gain on sale/contribution of asset to AWN		-			-			-			(210,873	)
AWN distributions received		12,500			12,455			50,000			22,011
AWN distributions received for the prior period		(4,167	)		(4,167	)		(4,167	)		(4,167	)
AWN distributions receivable within 12 days		4,167			4,167			4,167			4,167
Income tax (benefit) expense		(3,751	)		(4,426	)		(1,787	)		56,370
Stock-based compensation		634			592			2,511			2,860
Long-term cash incentives		470			149			2,042			631
Earthquake related expense		-			-			1,228			-
Formation of AWN and wireless sale transaction-related costs		4,057			408			4,297			6,382
Adjusted EBITDA	$	22,297		$	16,643		$	92,573		$	106,492
Revenue		77,509			76,267			314,863			348,924
CETC Revenue		(4,984	)		(4,925	)		(19,565	)		(21,018	)
Net Revenue	$	72,525		$	71,342		$	295,298		$	327,906
Adjusted EBITDA Margin		30.7	%		23.3	%		31.3	%		32.5	%

Non-GAAP Measures:

In an effort to provide investors with additional information regarding the Company's results as determined by GAAP, the Company also discloses certain non-GAAP information which management utilizes to assess recurring performance and believes provides useful information to investors regarding baseline operating results.

The Company has disclosed Adjusted EBITDA as net income before interest, loss on extinguishment of debt, depreciation and amortization, loss on the impairment of equity investments or other assets, loss on sale of short-term investments, gain or loss on asset purchases or disposals, earnings on equity method investments, provisions for taxes, transaction-related costs, stock-based compensation, and expenses under the company’s long term cash incentive plan (“LTCI”) including adjustments to TekMate purchase price based upon achieving earn out targets. LTCI expenses are considered part of an interim compensation structure to mitigate the dilutive impact of additional share issuances for executive compensation. Transaction related costs include $1,069 of inventory write downs associated with the AWN formation and sale transactions. Distributions from AWN are included in Adjusted EBITDA. Additionally, in July 2014 an undersea cable serving Juneau, Alaska was impacted by a service disruption associated with an earthquake. The costs associated with restoration and repair of this facility is excluded from Adjusted EBITDA.

Due to the AWN structure, ACS receives certain high cost revenues ("CETC") which are reported in operating revenue, non-affiliates, and remits an equal amount to AWN as a component of our consideration for wholesale wireless services, which is reported in Cost of services and sales, affiliated. From a financial reporting perspective CETC grosses up our revenue and expense and has no impact on Adjusted EBITDA, but impacts our core margins. We therefore report Adjusted EBITDA Margin to exclude this impact.

										Schedule 5
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
FREE CASH FLOW
(Unaudited, In Thousands)
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
		2014			2013			2014			2013
Adjusted EBITDA	$	22,297		$	16,643		$	92,573		$	106,492
Less:
Capital spending
Incurred capital expenditures		(12,507	)		(20,424	)		(46,423	)		(47,738	)
Milestone billings for fiber build project for a carrier customer		3,960			-			5,960			-
AWN transaction-related capital costs, net change		-			-			-			(41	)
Net capital spending		(8,547	)		(20,424	)		(40,463	)		(47,779	)
Amortization of AWN capacity revenue		(814	)		(774	)		(3,151	)		(1,512	)
Earthquake related expense		-			-			(1,228	)		-
Cash interest expense		(9,526	)		(9,986	)		(31,562	)		(35,187	)
Free cash flow	$	3,410		$	(14,541	)	$	16,169		$	22,014

Non-GAAP Measures:

In an effort to provide investors with additional information regarding the Company's results as determined by GAAP, the Company also discloses certain non-GAAP information which management utilizes to assess recurring performance and believes provides useful information to investors regarding baseline operating results.

Free cash flow ("FCF") is defined as Adjusted EBITDA, less capital expenditures that create an obligation to pay (“incurred capital expenditures”), plus milestone billings for a fiber build project for a carrier customer, less AWN transaction-related capital costs, less amortization of AWN capacity revenue (which is a non cash revenue item), less earthquake related costs, less cash interest expense. Note that incurred capital spending includes the costs associated with a two year fiber build project with a strategic customer however we are adding back the cash we receive from the customer for the funding of that project to FCF. Accordingly, our capital spending will be elevated because of this project, but the project will be accretive to FCF.

										Schedule 6
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
REVENUE GROWTH
(Unaudited, In Thousands)
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
Service revenue:		2014			2013			2014			2013
Business and wholesale customers
Voice	$	5,551		$	5,644		$	22,499		$	22,947
Broadband		11,125			10,518			43,783			40,027
IT Services		952			-			3,492			-
Other		1,848			1,690			7,104			7,659
Wholesale		8,320			7,728			33,043			30,047
Business and wholesale service revenue		27,796			25,580			109,921			100,680
Consumer customers
Voice		3,533			3,999			14,932			16,818
Broadband		6,400			5,665			24,841			22,108
Other		372			464			1,563			1,739
Consumer service revenue		10,305			10,128			41,336			40,665
Total service revenue		38,101			35,708			151,257			141,345
Growth in service revenue		6.7	%					7.0	%
Growth in broadband service revenue		8.3	%					10.4	%
Other revenue:
Equipment sales		1,900			632			5,321			2,083
Access		8,591			8,977			35,323			37,033
High cost support		4,921			5,218			23,192			18,776
Total service and other revenue		53,513			50,535			215,093			199,237
Growth in service and other revenue		5.9	%					8.0	%
Growth excluding equipment sales		3.4	%					6.4	%
Wireless revenue:
Business and consumer service revenue		14,906			17,590			65,504			71,197
Equipment sales		2,000			1,062			6,178			4,847
Other		1,292			1,458			5,302			5,049
AWN related:
Foreign roaming		-			-			-			40,029
Wireless backhaul		-			(77	)		70			6,035
CETC		4,984			4,925			19,565			21,018
Amortization of deferred AWN capacity revenue		814			774			3,151			1,512
Total AWN related		5,798			5,622			22,786			68,594
Total wireless & AWN related revenue		23,996			25,732			99,770			149,687
Total revenue	$	77,509		$	76,267		$	314,863		$	348,924

					Schedule 7
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
KEY OPERATING STATISTICS
(Unaudited)
	Three Months Ended
	December 31,		September 30,		December 31,
	2014		2014		2013
Voice:
Consumer access lines		43,773		45,177		49,297
Business access lines		79,168		79,563		79,816
Voice ARPU consumer	$	26.48	$	26.73	$	26.65
Voice ARPU business	$	23.31	$	23.65	$	23.53
Broadband:
Consumer connections		37,412		38,257		38,677
Business connections (2)		19,234		19,201		18,739
ARPU consumer	$	55.91	$	54.18	$	48.59
ARPU business (1) (2)	$	192.64	$	190.60	$	186.92
Wireless:
Postpaid connections		74,839		79,963		85,982
Lifeline connections		7,232		7,637		7,145
Prepaid connections		21,267		21,463		15,721
Total		103,338		109,063		108,848

(1)	Business broadband ARPU was restated to reflect the movement of IT services revenue into a separate category.
(2)	How we calculate broadband connections has changed to exclude certain internal use circuits. Historical amounts have been restated to reflect appropriate comparisons period over period.

				Schedule 8
ALASKA COMMUNICATIONS SYSTEMS GROUP, INC.
Long Term Debt
(Unaudited, In Thousands)
	December 31,			December 31,
		2014			2013
2010 senior credit facility term loan due 2016	$	322,700		$	345,900
Debt discount - 2010 senior credit facility term loan due 2016		(1,014	)		(1,687	)
6.25% convertible notes due 2018		114,000			114,000
Debt discount - 6.25% convertible notes due 2018		(7,242	)		(9,213	)
Capital leases and other long-term obligations		5,524			7,257
		433,968			456,257
Less current portion		(15,521	)		(14,256	)
Long-term obligations, net of current portion	$	418,447		$	442,001
Maturities
2016	$	15,808
2017		309,078
2018		815
2019		114,618
2020		392
Thereafter		3,907
	$	444,618

Our debt balances exclude $2,394 associated with the capital leases held-for-sale in conjunction with the sale of our wireless operations. Our maturity schedule includes these balances.

CONTACT:
Alaska Communications Systems Group, Inc.
Investor Contact:
Tiffany Dunn, 907-297-3103
Manager, Board and Investor Relations
investors@acsalaska.com
or
Media Contact:
Hannah Blankenship, 907-564-1326
Associate Manager, Corporate Communications
Hannah.Blankenship@acsalaska.com