Exhibit 99.1
August 5, 2009
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 SECOND QUARTER 2009 FINANCIAL RESULTS
· | Consolidated revenue of $148.8 million |
· | Adjusted EBITDA of $51.2 million |
· | Net income of $2.6 million or $0.05 per diluted share |
ANCHORAGE, AK -- GCI (NASDAQ:GNCMA) today reported second quarter 2009 revenues of $148.8 million, an increase of 4.5 percent over the second quarter of 2008. Second quarter 2009 earnings before interest, taxes, depreciation, amortization and adjusted for share-based compensation and non-cash contribution (adjusted EBITDA) totaled $51.2 million. Adjusted EBITDA increased $6.9 million or 15.7 percent from the second quarter of 2008.
GCI’s second quarter 2009 net income is $2.6 million or earnings per diluted share of $0.05 and compares to net income of $1.8 million, or earnings per diluted share of $0.03 for the same period of 2008.
Second quarter 2009 revenues increased $0.1 million over total revenues of $148.7 million in the first quarter of 2009. Adjusted EBTIDA increased $4.8 million, or 10.3 percent over adjusted EBITDA of $46.4 million also in the first quarter of 2009.
“GCI’s second quarter results mark yet another record high for revenues and EBITDA,” said GCI president Ron Duncan. “Led by an increase of 6,500 wireless subscribers our consumer group continued its strong growth. At the end of the second quarter the annual run rate of consumer revenue was up more than $35 million, or 14 percent, over the prior year.”
“During the quarter we completed our wireless conversion, on time, under budget and with the loss of only a few subscribers. With more than 112,000 wireless subscribers at the end of the quarter and the strength of new sales continuing, we’re well on our way to being the second largest wireless provider in Alaska.”
“During the quarter the Alaska economy experienced its first real impacts from the global recession. Jobs in Alaska, measured on a year-over-year basis, were down for the first time in May and June and we’re seeing slowing growth from our commercial customers. Price pressures in the market are also increasing. While we’re on plan at the halfway point in the year, our goal of $200 million in EBITDAS seems more challenging now than it did in January.”
“I continue to be very pleased with our overall results and the strong performance of our team in the fast paced and challenging environment. We continue to execute well on our established goals and are out performing our competition in all areas.”
Highlights
· | GCI added 7,500 consumer and commercial wireless subscribers in the second quarter of 2009. Wireless subscribers totaled 112,600 at the end of the quarter. |
· | GCI completed the conversion of its GSM wireless customers early in the second quarter of 2009. |
· | Consumer revenues totaled $73.4 million, an increase of 18.2 percent over the second quarter of 2008 and an increase of 3.8 percent over the first quarter of 2009. The year-over-year increases in revenues were in all product lines. Consumer revenues for the second quarter of 2009 include $2.4 million in Competitive Eligible Telecommunications Carrier (CETC) revenues attributable to prior quarters. |
· | Consumer, network access, commercial and regulated operations access lines totaled 141,800 at the end of the second quarter of 2009, representing an estimated 34 percent share of the total access line market in Alaska. |
· | GCI has provisioned 101,600 access lines representing 72 percent of its total access lines on its own facilities at the end of the second quarter of 2009, an increase of 400 lines over the first quarter of 2009 and an increase of 11,500 lines when compared to the end of the second quarter of the prior year. The company had provisioned 90,100 access lines on its own facilities at the end of the second quarter of 2008. |
· | GCI had 105,300 consumer and commercial cable modem access customers at the end of the second quarter of 2009, an increase of 800 over the 104,500 cable modem customers at the end of the first quarter 2009. Average monthly revenue per cable modem totaled $42.19 for the second quarter of 2009 as compared to $37.77 in the prior year, an increase of 11.7 percent and is up 3.0 percent over $40.97 for the first quarter of 2009. The increase in average monthly revenues arises primarily from customers upgrading to plans with increased levels of service. |
· | GCI had 151,700 basic video subscribers at the end of the second quarter of 2009, an increase of 3,700 over the second quarter of 2008 and an increase of 1,700 over the first quarter of 2009. |
Consumer
Consumer revenues increased 18.2 percent to $73.4 million compared to $62.1 million in the second quarter of 2008 and increased 3.8 percent over the first quarter of 2009. The year-over-year increases in revenue were across all product lines. Consumer revenues for the second quarter of 2009 include $2.4 million in CETC revenues attributable to prior quarters.
Consumer voice revenues were up 7.2 percent over the prior year and down 6.7 percent from the first quarter of 2009. The year-over-year increase in voice revenues in the second quarter is primarily due to the increase in customers purchasing voice services in existing and newly served markets. The sequential decline is due to an accrual of CETC revenues in the first quarter that were attributable to prior quarters. Consumer local access lines in service for the second quarter were up 3,000 lines over the second quarter of 2008. Access lines in the second quarter decreased by 200 compared to the first quarter of 2009.
GCI serves 70,300 consumer access lines on its own facilities, an increase of 400 lines over the first quarter of 2009. More than 86 percent of consumer access lines are completely provisioned on GCI owned facilities.
Consumer video revenues increased 5.7 percent over the prior year and decreased 0.9 percent from the first quarter of 2009. The increase in year-over-year revenue is due in part to an increase in subscribers purchasing higher tier services including high definition or digital service and renting high definition/digital video recorders. Consumer video subscribers totaled 129,700 at the end of the second quarter of 2009.
Consumer data revenues increased 17.1 percent over the prior year and 3.4 percent over the first quarter of 2009. 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 3,900 consumer cable modem customers over the prior year and cable modem customer counts increased by 600 on a sequential basis over the first quarter of 2009.
Consumer wireless revenues increased to $21.1 million, an increase of 51.4 percent over the second quarter of 2008. The increase in wireless revenues is primarily due to an increase in wireless subscribers. Wireless revenues for the second quarter of 2009 include $2.4 million in CETC revenues attributable to prior quarters. Consumer has added more than 27,100 wireless lines in service from the end of the second quarter a year ago, an increase of 34.6 percent. Consumer added 6,500 wireless customers as compared to the end of the first quarter of 2009.
Network Access
Network access revenues decreased 25.7 percent to $31.1 million as compared to $41.9 million in the second quarter of 2008 and decreased 6.3 percent from the first quarter of 2009. The decrease in revenues from the prior year is primarily attributed to the expected migration of AT&T Mobility traffic from the company’s network.
Voice revenues, as expected, decreased 42.1 percent from the prior year and 6.2 percent from the first quarter of 2009. The decrease in voice revenues and corresponding minutes as compared to the prior year is primarily due to the migration of AT&T Mobility traffic. Minutes for the second quarter of 2009 increased 7.6 percent from the first quarter of 2009.
Data revenues for the second quarter of 2009 were down 10.7 percent compared to the second quarter 2008 and decreased 10.5 percent from the first quarter of 2009. The decrease in data revenues is primarily attributable to a customer’s conversion from leased to purchased capacity on GCI’s fiber systems. The fiber purchase occurred in the prior year.
Wireless revenues, primarily related to roaming traffic, increased $0.9 million over the prior year and increased $0.7 million sequentially.
Commercial
Commercial revenues decreased $0.5 million to $26.9 million as compared to $27.4 million in the second quarter of 2008 and decreased $1.1 million from $28.0 million in the first quarter of 2009. Commercial revenues decreased primarily in the data category. On a year-over-year basis, increased commercial data services revenues more than offset a $1.1 million decrease in time and materials revenues. On a sequential basis almost all of the decrease is attributable to decreased time and materials revenues.
Voice revenues increased 5.8 percent over the prior year. Long distance minutes decreased 3.4 percent from the prior year and 1.3 percent from the first quarter of 2009. GCI increased commercial local access lines by 1,900 over the second quarter of 2008 and 400 when compared to the first quarter of 2009.
Commercial video revenues were relatively steady on a year-over-year basis and on a sequential basis.
Commercial data service revenues totaled $15.4 million in the second quarter of 2009, down $1.1 million from the second quarter of 2008 and down $1.0 million from the first quarter of 2009. The entire decrease is attributable to reduced time and materials revenues. Time and materials revenues are down primarily due to decreased activity in the state’s oil sector.
Wireless revenues totaled $1.6 million for the second quarter, an increase of 10.4 percent over the prior year and an increase of 9.5 percent over the first quarter of 2009. GCI had 8,900 commercial wireless subscribers at the end of the second quarter, an increase of 1,000 subscribers over the first quarter of 2009.
Managed Broadband
Managed broadband revenues totaled $11.0 million in the second quarter of 2009, an increase of 20.4 percent over $9.1 million in the second quarter of 2008. Revenue for the second quarter was up 3.7 percent over the $10.6 million reported in the first quarter of 2009. A significant portion of the increased revenues on a year-over-year basis are a result of the acquisition of Unicom in the prior year.
Regulated Operations
Regulated operations revenues totaled $6.4 million and adjusted EBITDA totaled $2.3 million for the second quarter of 2009. Regulated operations has 11,600 local access lines at the end of the second quarter of 2009, a decrease of 300 access lines from the first quarter of 2009. As GCI rolls out more statewide wireless coverage further access line decreases are expected due to wireless substitution.
Other Items
During the second quarter of 2009 GCI’s capital expenditures totaled $29.7 million as compared to $24.4 million in the first quarter of 2009.
GCI will hold a conference call to discuss the quarter’s results on Thursday, August 6, 2009 beginning at 2 p.m. (Eastern). To access the briefing on August 6, dial 800-779-1163 (International callers should dial 1-630-395-0230) 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 800-333-1859, access code 7461 (International callers should dial 402-220-0205.)
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 connects 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 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 | ||||
(Amounts in thousands) | (Unaudited) | |||
June 30, | December 31, | |||
Assets | 2009 | 2008 | ||
Current assets: | ||||
Cash and cash equivalents | $ | 27,431 | 29,904 | |
Receivables | 120,128 | 113,136 | ||
Less allowance for doubtful receivables | 4,261 | 2,582 | ||
Net receivables | 115,867 | 110,554 | ||
Inventories | 8,688 | 7,085 | ||
Deferred income taxes | 7,034 | 7,843 | ||
Prepaid expenses | 6,228 | 5,960 | ||
Investment securities | 883 | 1,563 | ||
Other current assets | 4,756 | 647 | ||
Total current assets | 170,887 | 163,556 | ||
Property and equipment in service, net of depreciation | 806,020 | 793,051 | ||
Construction in progress | 36,746 | 54,098 | ||
Net property and equipment | 842,766 | 847,149 | ||
Cable certificates | 191,565 | 191,565 | ||
Goodwill | 68,586 | 66,868 | ||
Wireless licenses | 25,967 | 25,967 | ||
Other intangible assets, net of amortization | 20,568 | 22,976 | ||
Deferred loan and senior notes costs, net of amortization | 5,903 | 6,496 | ||
Other assets | 21,633 | 10,724 | ||
Total other assets | 334,222 | 324,596 | ||
Total assets | $ | 1,347,875 | 1,335,301 | |
(Continued)
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | ||||
CONSOLIDATED BALANCE SHEETS | ||||
(Continued) | ||||
(Amounts in thousands) | (Unaudited) | |||
June 30, | December 31, | |||
Liabilities and Stockholders' Equity | 2009 | 2008 | ||
Current liabilities: | ||||
Current maturities of obligations under long-term debt and capital leases | $ | 13,088 | 12,857 | |
Accounts payable | 32,371 | 40,497 | ||
Deferred revenue | 21,866 | 22,095 | ||
Accrued payroll and payroll related obligations | 19,911 | 22,632 | ||
Accrued liabilities | 10,872 | 11,043 | ||
Accrued interest | 9,616 | 10,224 | ||
Subscriber deposits | 1,368 | 1,262 | ||
Total current liabilities | 109,092 | 120,610 | ||
Long-term debt | 724,200 | 708,406 | ||
Obligations under capital leases, excluding current maturities | 91,698 | 94,029 | ||
Obligation under capital lease due to related party, excluding current maturity | 1,872 | 1,868 | ||
Deferred income taxes | 88,642 | 86,187 | ||
Long-term deferred revenue | 50,785 | 49,998 | ||
Other liabilities | 15,856 | 15,288 | ||
Total liabilities | 1,082,145 | 1,076,386 | ||
Commitments and contingencies | ||||
Stockholders’ equity: | ||||
Common stock (no par): | ||||
Class A. Authorized 100,000 shares; issued 49,976 and 50,062 shares at June 30, 2009 and December 31, 2008, respectively; outstanding 49,702 and 49,593 shares at June 30, 2009 and December 31, 2008, respectively | 150,883 | 151,262 | ||
Class B. Authorized 10,000 shares; issued 3,192 and 3,203 shares at June 30, 2009 and December 31, 2008, respectively; outstanding 3,192 and 3,201 shares at June 30, 2009 and December 31, 2008, respectively; convertible on a share-per-share basis into Class A common stock | 2,689 | 2,706 | ||
Less cost of 275 and 283 Class A and Class B common shares held in treasury at June 30, 2009 and December 31, 2008, respectively | (2,369) | (2,462) | ||
Paid-in capital | 30,474 | 27,233 | ||
Retained earnings | 84,053 | 80,176 | ||
Total stockholders' equity | 265,730 | 258,915 | ||
Total liabilities and stockholders' equity | $ | 1,347,875 | 1,335,301 |
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED INCOME STATEMENT | ||||||||
(Unaudited) | ||||||||
Three Months Ended | Six Months Ended | |||||||
June 30, | June 30, | |||||||
(Amounts in thousands, except per share amounts) | 2009 | 2008 | 2009 | 2008 | ||||
Revenues | $ | 148,796 | 142,461 | 297,485 | 277,135 | |||
Cost of goods sold (exclusive of depreciation and amortization shown separately below) | 47,348 | 52,448 | 95,205 | 103,759 | ||||
Selling, general and administrative expenses | 51,719 | 48,260 | 108,305 | 94,666 | ||||
Depreciation and amortization expense | 31,170 | 27,708 | 61,904 | 54,951 | ||||
Operating income | 18,559 | 14,045 | 32,071 | 23,759 | ||||
Other income (expense): | ||||||||
Interest expense (including amortization of deferred loan fees) | (13,273) | (11,778) | (25,920) | (20,686) | ||||
Interest income | 11 | 402 | 19 | 483 | ||||
Other expense, net | (13,262) | (11,376) | (25,901) | (20,203) | ||||
Income before income tax expense | 5,297 | 2,669 | 6,170 | 3,556 | ||||
Income tax expense | 2,733 | 1,783 | 3,252 | 3,210 | ||||
Net income | 2,564 | 886 | 2,918 | 346 | ||||
Net income attributable to the non-controlling interest | - | 946 | - | 1,922 | ||||
Net income attributable to General Communication, Inc. | $ | 2,564 | 1,832 | 2,918 | 2,268 | |||
Basic net income per common share | $ | 0.05 | 0.04 | 0.06 | 0.04 | |||
Diluted net income per common share | $ | 0.05 | 0.03 | 0.05 | 0.04 | |||
Common shares used to calculate basic EPS | 52,499 | 52,320 | 52,487 | 52,289 | ||||
Common shares used to calculate diluted EPS | 52,906 | 52,745 | 53,101 | 52,950 |
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | |||||||||||||
SUPPLEMENTAL SCHEDULES | |||||||||||||
(Unaudited) | |||||||||||||
(Amounts in thousands) | |||||||||||||
Second Quarter 2009 | Second Quarter 2008 | ||||||||||||
Network | Managed | Regulated | Network | Managed | Regulated | ||||||||
Consumer | Access | Commercial | Broadband | Operations | Totals | Consumer | Access | Commercial | Broadband | Operations | Totals | ||
Revenues | |||||||||||||
Voice | $ 12,988 | 13,444 | 7,701 | - | 6,368 | 40,501 | 12,117 | 23,213 | 7,280 | - | 1,879 | 44,489 | |
Video | 27,132 | - | 2,221 | - | - | 29,353 | 25,668 | - | 2,149 | - | - | 27,817 | |
Data | 12,166 | 16,073 | 15,409 | 10,998 | - | 54,646 | 10,386 | 17,988 | 16,584 | 9,134 | - | 54,092 | |
Wireless | 21,113 | 1,603 | 1,580 | - | - | 24,296 | 13,942 | 690 | 1,431 | - | - | 16,063 | |
Total | 73,399 | 31,120 | 26,911 | 10,998 | 6,368 | 148,796 | 62,113 | 41,891 | 27,444 | 9,134 | 1,879 | 142,461 | |
Cost of goods sold (exclusive of depreciation and amortization) | 24,011 | 6,556 | 12,977 | 2,357 | 1,447 | 47,348 | 23,689 | 11,529 | 13,912 | 3,020 | 298 | 52,448 | |
Contribution | 49,388 | 24,564 | 13,934 | 8,641 | 4,921 | 101,448 | 38,424 | 30,362 | 13,532 | 6,114 | 1,581 | 90,013 | |
Less SG&A | 27,740 | 9,370 | 8,600 | 3,411 | 2,598 | 51,719 | 26,055 | 9,578 | 8,312 | 3,093 | 1,222 | 48,260 | |
Non-controlling interest | - | - | - | - | - | - | 416 | 371 | 159 | - | - | 946 | |
EBITDA | 21,648 | 15,194 | 5,334 | 5,230 | 2,323 | 49,729 | 12,785 | 21,155 | 5,379 | 3,021 | 359 | 42,699 | |
Add share-based compensation | 607 | 452 | 246 | 122 | - | 1,427 | 638 | 521 | 317 | 117 | - | 1,593 | |
Add non-cash contribution | 37 | 25 | 12 | 6 | - | 80 | - | - | - | - | - | - | |
Adjusted EBITDA | $ 22,292 | 15,671 | 5,592 | 5,358 | 2,323 | 51,236 | 13,423 | 21,676 | 5,696 | 3,138 | 359 | 44,292 |
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | |||||||||||||
SUPPLEMENTAL SCHEDULES | |||||||||||||
(Unaudited) | |||||||||||||
(Amounts in thousands) | |||||||||||||
Second Quarter 2009 | First Quarter 2009 | ||||||||||||
Network | Managed | Regulated | Network | Managed | Regulated | ||||||||
Consumer | Access | Commercial | Broadband | Operations | Totals | Consumer | Access | Commercial | Broadband | Operations | Totals | ||
Revenues | |||||||||||||
Voice | $ 12,988 | 13,444 | 7,701 | - | 6,368 | 40,501 | 13,915 | 14,334 | 7,984 | - | 6,169 | 42,402 | |
Video | 27,132 | - | 2,221 | - | - | 29,353 | 27,370 | - | 2,050 | - | - | 29,420 | |
Data | 12,166 | 16,073 | 15,409 | 10,998 | - | 54,646 | 11,762 | 17,954 | 16,515 | 10,610 | - | 56,841 | |
Wireless | 21,113 | 1,603 | 1,580 | - | - | 24,296 | 17,672 | 911 | 1,443 | - | - | 20,026 | |
Total | 73,399 | 31,120 | 26,911 | 10,998 | 6,368 | 148,796 | 70,719 | 33,199 | 27,992 | 10,610 | 6,169 | 148,689 | |
Cost of goods sold (exclusive of depreciation and amortization) | 24,011 | 6,556 | 12,977 | 2,357 | 1,447 | 47,348 | 23,403 | 6,684 | 13,355 | 2,689 | 1,726 | 47,857 | |
Contribution | 49,388 | 24,564 | 13,934 | 8,641 | 4,921 | 101,448 | 47,316 | 26,515 | 14,637 | 7,921 | 4,443 | 100,832 | |
Less SG&A | 27,740 | 9,370 | 8,600 | 3,411 | 2,598 | 51,719 | 29,486 | 10,275 | 9,723 | 4,191 | 2,911 | 56,586 | |
EBITDA | 21,648 | 15,194 | 5,334 | 5,230 | 2,323 | 49,729 | 17,830 | 16,240 | 4,914 | 3,730 | 1,532 | 44,246 | |
Add share-based compensation | 607 | 452 | 246 | 122 | - | 1,427 | 765 | 553 | 326 | 158 | - | 1,802 | |
Add non-cash contribution | 37 | 25 | 12 | 6 | - | 80 | 183 | 126 | 61 | 30 | - | 400 | |
Adjusted EBITDA | $ 22,292 | 15,671 | 5,592 | 5,358 | 2,323 | 51,236 | 18,778 | 16,919 | 5,301 | 3,918 | 1,532 | 46,448 |
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | |||||||||||||
SUPPLEMENTAL SCHEDULES | |||||||||||||
(Unaudited) | |||||||||||||
(Amounts in thousands) | |||||||||||||
Six Months Ended June 30, 2009 | Six Months Ended June 30, 2008 | ||||||||||||
Network | Managed | Regulated | Network | Managed Regulated | |||||||||
Consumer | Access | Commercial | Broadband | Operations | Totals | Consumer | Access | Commercial | Broadband Operations | Totals | |||
Revenues | |||||||||||||
Voice | $ 26,903 | 27,778 | 15,685 | - | 12,537 | 82,903 | 23,978 | 45,155 | 14,494 | - | 1,879 | 85,506 | |
Video | 54,502 | - | 4,271 | - | - | 58,773 | 51,315 | - | 3,969 | - | - | 55,284 | |
Data | 23,928 | 34,027 | 31,924 | 21,608 | - | 111,487 | 20,482 | 34,827 | 32,793 | 16,660 | - | 104,762 | |
Wireless | 38,785 | 2,514 | 3,023 | - | - | 44,322 | 27,721 | 1,083 | 2,779 | - | - | 31,583 | |
Total | 144,118 | 64,319 | 54,903 | 21,608 | 12,537 | 297,485 | 123,496 | 81,065 | 54,035 | 16,660 | 1,879 | 277,135 | |
Cost of goods sold (exclusive of depreciation and amortization) | 47,414 | 13,240 | 26,332 | 5,046 | 3,173 | 95,205 | 48,391 | 21,783 | 27,983 | 5,304 | 298 | 103,759 | |
Contribution | 96,704 | 51,079 | 28,571 | 16,562 | 9,364 | 202,280 | 75,105 | 59,282 | 26,052 | 11,356 | 1,581 | 173,376 | |
Less SG&A | 57,225 | 19,645 | 18,323 | 7,603 | 5,509 | 108,305 | 51,406 | 19,166 | 16,924 | 5,948 | 1,222 | 94,666 | |
Non-controlling interest | - | - | - | - | - | - | 844 | 754 | 324 | - | - | 1,922 | |
EBITDA | 39,479 | 31,434 | 10,248 | 8,959 | 3,855 | 93,975 | 24,543 | 40,870 | 9,452 | 5,408 | 359 | 80,632 | |
Add share-based compensation | 1,371 | 1,005 | 572 | 281 | - | 3,229 | 1,134 | 943 | 569 | 207 | - | 2,853 | |
Add non-cash contribution | 220 | 151 | 73 | 36 | - | 480 | - | - | - | - | - | - | |
Adjusted EBITDA | $ 41,070 | 32,590 | 10,893 | 9,276 | 3,855 | 97,684 | 25,677 | 41,813 | 10,021 | 5,615 | 359 | 83,485 |
GENERAL COMMUNICATION, INC. AND SUBSIDIARIES | ||||||||||
KEY PERFORMANCE INDICATORS | ||||||||||
(Unaudited) | ||||||||||
June 30, 2009 | June 30, 2009 | |||||||||
as compared to | as compared to | |||||||||
June 30, | June 30, | March 31, | June 30, | March 31, | June 30, | March 31, | ||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | ||||
Consumer | ||||||||||
Voice | ||||||||||
Long-distance subscribers | 88,600 | 89,800 | 88,700 | (1,200) | (100) | -1.3% | -0.1% | |||
Total local access lines in service | 81,200 | 78,100 | 81,400 | 3,100 | (200) | 4.0% | -0.2% | |||
Local access lines in service on GCI facilities | 70,300 | 60,500 | 69,900 | 9,800 | 400 | 16.2% | 0.6% | |||
Video | ||||||||||
Basic subscribers | 129,700 | 130,300 | 130,000 | (600) | (300) | -0.5% | -0.2% | |||
Digital programming tier subscribers | 76,200 | 68,200 | 76,100 | 8,000 | 100 | 11.7% | 0.1% | |||
HD/DVR converter boxes | 74,400 | 56,900 | 72,100 | 17,500 | 2,300 | 30.8% | 3.2% | |||
Homes passed | 230,400 | 226,900 | 229,700 | 3,500 | 700 | 1.5% | 0.3% | |||
Data | ||||||||||
Cable modem subscribers | 94,900 | 91,000 | 94,300 | 3,900 | 600 | 4.3% | 0.6% | |||
Wireless | ||||||||||
Wireless lines in service | 103,600 | 77,000 | 97,100 | 26,600 | 6,500 | 34.5% | 6.7% | |||
Network Access Services | ||||||||||
Data: | ||||||||||
Total ISP access lines in service | 1,700 | 2,000 | 1,700 | (300) | - | -15.0% | 0.0% | |||
Commercial | ||||||||||
Voice: | ||||||||||
Long-distance subscribers | 9,600 | 10,400 | 9,700 | (800) | (100) | -7.7% | -1.0% | |||
Total local access lines in service | 47,300 | 45,400 | 46,900 | 1,900 | 400 | 4.2% | 0.9% | |||
Local access lines in service on GCI facilities | 18,400 | 16,600 | 18,000 | 1,800 | 400 | 10.8% | 2.2% | |||
Video | ||||||||||
Hotels and mini-headend subscribers | 20,300 | 15,700 | 18,300 | 4,600 | 2,000 | 29.3% | 10.9% | |||
Basic subscribers | 1,700 | 2,000 | 1,700 | (300) | - | -15.0% | 0.0% | |||
Total basic subscribers | 22,000 | 17,700 | 20,000 | 4,300 | 2,000 | 24.3% | 10.0% | |||
Data | ||||||||||
Cable modem subscribers | 10,400 | 9,000 | 10,200 | 1,400 | 200 | 15.6% | 2.0% | |||
Wireless | ||||||||||
Wireless lines in service | 8,900 | 7,100 | 8,000 | 1,800 | 900 | 25.4% | 11.3% | |||
Regulated Operations | ||||||||||
Voice: | ||||||||||
Total local access lines in service | 11,600 | 12,200 | 11,900 | NA | NA | NA | NA | |||
June 30, 2009 | June 30, 2009 | |||||||||
Three Months Ended | as Compared to | as Compared to | ||||||||
June 30, | June 30, | March 31, | June 30, | March 31, | June 30, | March 31, | ||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | ||||
Consumer | ||||||||||
Voice | ||||||||||
Long-distance minutes carried (in millions) | 28.3 | 32.0 | 29.6 | (3.7) | (1.3) | -11.6% | -4.4% | |||
Video | ||||||||||
Average monthly gross revenue per subscriber | $ 69.59 | $ 65.86 | $ 69.50 | $ 3.73 | $ 0.09 | 5.7% | 0.1% | |||
Wireless | ||||||||||
Average monthly gross revenue per subscriber | $ 57.88 | $ 57.39 | $ 58.63 | $ 0.49 | $ (0.75) | 0.9% | -1.3% | |||
Network Access Services | ||||||||||
Voice | ||||||||||
Long-distance minutes carried (in millions) | 215.6 | 326.2 | 200.4 | (110.6) | 15.2 | -33.9% | 7.6% | |||
Commercial | ||||||||||
Voice: | ||||||||||
Long-distance minutes carried (in millions) | 31.8 | 32.9 | 32.2 | (1.1) | (0.4) | -3.3% | -1.2% | |||
Total | ||||||||||
Long-distance minutes carried (in millions) | 275.7 | 391.1 | 262.2 | (115.4) | 13.5 | -29.5% | 5.1% |
General Communication, Inc.
Non-GAAP Financial Reconciliation Schedule
(Unaudited, Amounts in Millions)
Three Months Ended | ||||||
June 30, 2009 | June 30, 2008 | March 31, 2009 | ||||
Net income attributable to General Communication, Inc. | $ | 2.6 | 1.8 | 0.4 | ||
Net income attributable to the non-controlling interest | --- | (0.9) | --- | |||
Net income | 2.6 | 0.9 | 0.4 | |||
Income tax expense | 2.7 | 1.8 | 0.5 | |||
Income before income tax expense | 5.3 | 2.7 | 0.9 | |||
Other (income) expense: | ||||||
Interest expense (including amortization of deferred loan fees) | 13.2 | 11.8 | 12.6 | |||
Interest income | --- | (0.4) | --- | |||
Other expense, net | 13.2 | 11.4 | 12.6 | |||
Operating income | 18.5 | 14.1 | 13.5 | |||
Depreciation and amortization expense | 31.2 | 27.7 | 30.7 | |||
Net income attributable to the non-controlling interest | --- | 0.9 | --- | |||
EBITDA (Note 2) | 49.7 | 42.7 | 44.2 | |||
Share-based compensation expense | 1.4 | 1.6 | 1.8 | |||
Non-cash contribution adjustment | 0.1 | --- | 0.4 | |||
Adjusted EBITDA (Note 1) | $ | 51.2 | 44.3 | 46.4 |
General Communication, Inc.
Non-GAAP Financial Reconciliation Schedule
(Unaudited, Amounts in Millions)
Six Months Ended | ||||
June 30, 2009 | June 30, 2008 | |||
Net income attributable to General Communication, Inc. | $ | 2.9 | 2.3 | |
Net income attributable to the non-controlling interest | --- | (1.9) | ||
Net income | 2.9 | 0.4 | ||
Income tax expense | 3.3 | 3.2 | ||
Income before income tax expense | 6.2 | 3.6 | ||
Other (income) expense: | ||||
Interest expense (including amortization of deferred loan fees) | 25.9 | 20.7 | ||
Interest income | (0.5) | |||
Other expense, net | 25.9 | 20.2 | ||
Operating income | 32.1 | 23.8 | ||
Depreciation and amortization expense | 61.9 | 54.9 | ||
Net income attributable to the non-controlling interest | --- | 1.9 | ||
EBITDA (Note 2) | 94.0 | 80.6 | ||
Share-based compensation expense | 3.2 | 2.9 | ||
Non-cash contribution adjustment | 0.5 | --- | ||
Adjusted EBITDA (Note 1) | $ | 97.7 | 83.5 |
Notes:
(1) EBITDA (as defined in Note 2 below) before deducting share-based compensation expense 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. |