Grizzly Merger Sub 1 (GLIBP) 8-K Gci Reports Third Quarter 2012 Financial Results

Exhibit 99.1

November 7, 2012

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 THIRD QUARTER 2012 FINANCIAL RESULTS

·   Consolidated revenue of $178.5 million

·   Adjusted EBITDA of $59.4 million

·   Net income of $3.7 million or $0.09 per diluted share

ANCHORAGE, AK – General Communication, Inc. (“GCI”) (NASDAQ:GNCMA) today reported its third quarter 2012 results with revenues increasing to $178.5 million over revenues of $177.7 million in the third quarter of 2011. Adjusted EBITDA decreased 5.8 percent or $3.7 million from the third quarter of 2011 EBITDA of $63.1 million.

GCI’s third quarter 2012 net income totaled $3.7 million or earnings per diluted share of $0.09, a decrease from net income of $7.2 million or earnings per diluted share of $0.15 for the same period of 2011.

Third quarter 2012 revenues increased $2.4 million over revenues of $176.1 million in the second quarter of 2012. Adjusted EBITDA for the third quarter of 2012 was steady when compared to adjusted EBITDA of $59.4 million in the second quarter of 2012.

           “We made continued progress during the quarter preparing for the establishment of our Alaska Wireless Network venture,” said Ron Duncan, GCI president. “With the exception of data, where growth has been robust, our economic results and subscriber metrics were disappointing. Trends away from wireline voice services continue to pressure our results and changes to the lifeline program have reduced overall wireless results. However, we added a substantial number of postpaid customers during the quarter and look for this trend to increase as we continue to deploy higher speed wireless services throughout Alaska.”

GCI previously provided guidance on revenues of $690 million to $720 million and adjusted EBITDA of $230 million to $240 million for the year 2012. GCI now expects adjusted EBITDA will be at or near the lower end of the guidance, excluding expenses related to The Alaska Wireless Network (“AWN”) transaction.

Highlights

·   Managed Broadband revenues for the third quarter of 2012 totaled $22.7 million, an increase of $5.3 million or 30.3 percent over the third quarter of 2011, primarily as a result of sales of broadband service on GCI’s TERRA-Southwest terrestrial network.

·   GCI received payment of $4.5 million for IRU capacity sold to a large carrier customer early in the third quarter of 2012. The IRU sale is treated as deferred revenue and will be recognized into income over the expected life of the capacity.

·   GCI had 124,700 consumer and commercial cable modem customers at the end of the third quarter of 2012, an increase of 6,800 over the end of the third quarter 2011. Average monthly revenue per cable modem for the third quarter of 2012 was $62.85, an increase of 11.9 percent over $56.17 for the prior year.

·   GCI entered into a second arrangement under the New Markets Tax Credit (NMTC) program to help fund Phase 3 of our TERRA-NW project. Phase 3 of our TERRA-NW project continues the extension of terrestrial broadband service to Kotzebue. The NMTC program was established in the Community Renewal Tax Relief Act of 2000 to induce capital investment in qualified low income communities and will fund $12.9 million, or almost half, of the expected total project cost.

Consumer

Consumer revenues were down $2.5 million from the third quarter of 2011 and $1.7 million from the second quarter of 2012. In the third quarter of 2012, data revenue growth was offset by decreases in voice, video and wireless compared to the third quarter of 2011. The decrease in third quarter revenue was primarily due to a $2.8 million decline in USF support for voice and wireless as compared to the third quarter of 2011.

Consumer voice revenues of $10.0 million decreased $3.2 million when compared to the prior year quarter and $0.5 million compared to the second quarter of 2012 as customers continue to abandon wireline service and shift to wireless. Consumer local access lines in service at the end of the third quarter of 2012 totaled 71,900, a decrease of 7,200 lines from the third quarter of 2011 and 2,500 lines from the second quarter of 2012. USF support for consumer voice services decreased $0.9 million year over year.

Consumer video revenues of $28.4 million decreased $0.8 million from the third quarter of 2011 and the second quarter of 2012. The decrease is primarily due to a decline in basic video subscribers. Consumer basic video subscribers totaled 122,200 at the end of the third quarter of 2012, a decrease of 4,200 subscribers from the third quarter of 2011 and 300 subscribers from the second quarter of 2012. GCI has had a steady increase in the number of customers who subscribe only to cable modem service. Presumably these access-only customers are purchasing video programming from other sources including over-the-top providers such as Netflix and Hulu.

Consumer data revenues of $21.4 million increased $3.3 million or 18.2 percent over the third quarter of 2011 and were steady with the second quarter of 2012. The increase in consumer data revenues is due to an increase in cable modem customers and increasing monthly usage. GCI added 6,300 consumer cable modem customers over the third quarter of 2011 and cable modem customer counts increased by 1,400 on a sequential basis.

Consumer wireless revenues of $27.1 million decreased $1.8 million or 6.2 percent from the third quarter of 2011. The decrease was primarily due to a $1.9 million decline in USF support, a $0.9 million decrease in Lifeline revenues due to fewer subscribers, offset in part by an increase in plan fees. Wireless revenues were steady when compared to the second quarter of 2012. GCI served 122,800 consumer wireless subscribers at the end of the third quarter of 2012.

Consumer served 87,300 postpaid and pre-paid subscribers at the end of the third quarter of 2012, an increase of 4,600 over the end of the third quarter a year ago and an increase of 2,400 wireless customers sequentially. Post paid subscribers increased 2,300 year over year and 1,800 sequentially. Prepaid subscribers increased 2,300 over the end of the third quarter a year ago and increased by 600 customers sequentially.

 GCI served 35,500 Lifeline customers at the end of the third quarter of 2012. In compliance with FCC Lifeline program reforms, GCI is required to recertify all Lifeline subscribers, enrolled as of June 1, 2012, by the end of 2012, with current subscribers to be recertified annually thereafter. The ongoing implementation of GCI’s existing qualification standards along with initiation of the FCC recertification process have contributed to a decrease of 7,600 Lifeline subscribers in the third quarter of 2012 as compared to the third quarter of 2011. Lifeline subscribers declined by 4,400 on a sequential basis. Lifeline subscriber counts could decline further as a result of the recertification process or future program changes.

Network Access

Network access revenues of $27.5 million decreased $2.0 million or 6.8 percent compared to the third quarter of 2011 and increased $1.5 million or 5.6 percent over the second quarter of 2012.

Voice revenues decreased $0.5 million to $5.7 million from the prior year and decreased $0.3 million from the second quarter of 2012. Data revenues were down $3.0 million when compared to $17.1 million in the third quarter of 2011 and increased $0.7 million to $14.1 million over the second quarter of 2012. The change in voice revenue is attributable to decreases in voice traffic and rate reductions. The decrease in data revenue when compared to the prior year quarter is attributable to a decrease in special project revenue for a new customer that occurred in the third quarter of 2011. The increase in third quarter data revenues over the second quarter of 2012 is primarily due an increase in wireless backhaul revenues.

Wireless revenues, primarily related to roaming traffic, increased by $1.6 million to $7.7 million, an increase of 26.2 percent over the prior year and increased by $1.1 million, or 16.2 percent on a sequential basis.

Commercial

Commercial revenues of $36.2 million increased 1.8 percent over the prior year quarter and increased 5.1 percent sequentially.

Commercial data service revenues were $23.6 million in the third quarter of 2012, an increase of $0.6 million over the third quarter of 2011 and an increase of $1.7 million over the second quarter of 2012. Commercial data service revenues include both transport charges for data circuits, professional services which are time and materials charges for GCI on-site support of customer operations and data center revenues. As summarized in the table below, data transport charges of $12.2 million increased by $0.8 million as compared to the third quarter of 2011, time and material charges for support activities decreased by $0.5 million to $11.1 million and data center revenues increased by $0.3 million over the third quarter of 2011.

Millions $		Q3 2012		Q3 2011		Q2 2012
Data Transport Charges	$	12.2	$	11.4	$	11.9
Professional Services		11.1		11.6		9.8
Data Center Revenues		0.3		0.0		0.2
Total Data Revenues	$	23.6	$	23.0	$	21.9

Commercial wireless revenues totaled $2.5 million for the third quarter of 2012 and were steady with the prior year and the second quarter of 2012. GCI had 16,600 commercial wireless subscribers at the end of the third quarter of 2012, an increase of 1,700 subscribers over the prior year and 400 subscribers sequentially. USF support for commercial wireless subscribers decreased by $0.1 million year over year.

Managed Broadband

Managed broadband revenues totaled $22.7 million in the third quarter of 2012, an increase of $5.3 million or 30.3 percent over the prior year and an increase of $1.0 million or 4.5 percent over the second quarter of 2012. The strong revenue growth is primarily due to an increase in broadband capacity utilized on the TERRA Southwest terrestrial network.

Regulated Operations

Regulated operations revenues totaled $5.3 million in the third quarter of 2012 a decrease of $0.7 million from the prior year quarter and were steady with the second quarter of 2012. Regulated operations had 8,500 local access lines at the end of the third quarter of 2012, a decrease of 200 access lines from the second quarter of 2012.

Other Items

SG&A expenses for the third quarter of 2012 totaled $58.2 million, an increase of 6.9 percent as compared to $54.5 million for the third quarter of 2011. The increase is due to labor and related benefits and transaction costs related to AWN. As a percentage of revenues, SG&A expenses increased to 32.6 percent in the third quarter of 2012 as compared to 30.6 percent in the prior year. SG&A expenses for the third quarter decreased $1.8 million from the second quarter of 2012. The decrease is primarily related to fewer AWN related costs and lower health care expenses. AWN related costs totaled $0.5 million for the third quarter of 2012 and $2.6 million year to date.

GCI’s third quarter 2012 capital expenditures totaled $45.9 million as compared to $57.2 million in the third quarter of 2011 and $39.1 million in the second quarter of 2012. GCI expects capital expenditures to total approximately $150 million for the year 2012.

GCI will hold a conference call to discuss the quarter’s results on Thursday, November 8, 2012 beginning at 2 p.m. (Eastern). To access the briefing on November 8, call the conference operator between 1:50-2:00 p.m. (Eastern Time) at 888-831-8982 (International callers should dial 1-212-547-0180) 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 800-884-1524, access code 7461 (International callers should dial 1-402-280-9924.)

GCI is the largest telecommunications company in Alaska. GCI’s cable plant, which provides voice, video, and broadband data services, passes 80 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 Alaska to the lower 48 states with a diversely routed, protected fiber network. GCI’s TERRA-Southwest fiber/microwave system links 65 communities in the Bristol Bay and Yukon-Kuskokwim Delta to Anchorage bringing terrestrial broadband Internet access to the region for the first time. GCI’s satellite network provides communications services to small towns and communities throughout rural Alaska. GCI’s statewide mobile wireless network seamlessly links urban and rural Alaska.

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 GCI can be found at www.gci.com.

The foregoing contains forward-looking statements regarding GCI’s expected results that are based on management’s expectations as well as on a number of assumptions concerning future events. Actual results might differ materially from those projected in the forward looking statements due to uncertainties and other factors, many of which are outside GCI’s control. Additional information concerning factors that could cause actual results to differ materially from those in the forward looking statements is contained in GCI’s cautionary statement sections of Forms 10-K and 10-Q filed with the Securities and Exchange Commission.

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Amounts in thousands)
	September 30,		December 31,
Assets	2012		2011
Current assets:
Cash and cash equivalents	$	27,555		29,387
Receivables		183,097		141,827
Less allowance for doubtful receivables		3,740		5,796
Net receivables		179,357		136,031
Deferred income taxes		15,555		15,555
Prepaid expenses		8,151		7,899
Inventories		11,948		7,522
Other current assets		2,464		3,631
Total current assets		245,030		200,025
Property and equipment in service, net of depreciation		817,798		849,121
Construction in progress		92,600		42,918
Net property and equipment		910,398		892,039
Cable certificates		191,635		191,635
Goodwill		74,883		74,883
Wireless licenses		25,967		25,967
Deferred loan and senior notes costs, net of amortization		11,566		12,812
Restricted cash		10,445		15,910
Other intangible assets, net of amortization		15,472		15,835
Other assets		14,449		17,214
Total other assets		344,417		354,256
Total assets	$	1,499,845		1,446,320
			(Continued)

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Amounts in thousands)
	September 30,			December 31,
Liabilities and Stockholders' Equity	2012			2011
Current liabilities:
Current maturities of obligations under long-term debt and capital leases	$	7,766			8,797
Accounts payable		43,880			41,353
Deferred revenue		23,903			22,003
Accrued payroll and payroll related obligations		20,901			22,126
Accrued interest		21,358			6,680
Accrued liabilities		25,528			11,423
Subscriber deposits		1,125			1,250
Total current liabilities		144,461			113,632
Long-term debt, net		864,804			858,031
Obligations under capital leases, excluding current maturities		74,259			78,605
Obligation under capital lease due to related party, excluding current maturity		1,893			1,893
Deferred income taxes		124,619			114,234
Long-term deferred revenue		88,561			81,822
Other liabilities		25,705			24,456
Total liabilities		1,324,302			1,272,673
Commitments and contingencies
Stockholders’ equity:
Common stock (no par):
Class A. Authorized 100,000 shares; issued 38,818 and 39,296 shares      at September 30, 2012 and December 31, 2011, respectively;      outstanding 38,625 and 39,043 shares at September 30, 2012 and      December 31, 2011, respectively		25,543			26,179
Class B. Authorized 10,000 shares; issued and outstanding 3,169 and      3,171 shares at September 30, 2012 and December 31, 2011,      respectively; convertible on a share-per-share basis into Class A      common stock		2,676			2,679
Less cost of 193 and 253 Class A shares held in treasury at       September 30, 2012, and December 31, 2011, respectively		(1,707	)		(2,225	)
Paid-in capital		26,232			32,795
Retained earnings		107,022			97,911
Total General Communication, Inc. stockholders' equity		159,766			157,339
Non-controlling interest		15,777			16,308
Total stockholders' equity		175,543			173,647
Total liabilities and stockholders' equity	$	1,499,845			1,446,320

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)	2012			2011			2012			2011
Revenues	$	178,494			177,703			526,505			510,569
Cost of goods sold (exclusive of depreciation and amortization shown   separately below)		62,754			60,664			177,687			171,734
Selling, general and administrative expenses		58,228			54,453			181,258			171,043
Depreciation and amortization expense		32,120			30,653			97,850			93,298
Operating income		25,392			31,933			69,710			74,494
Other income (expense):
Interest expense (including amortization of deferred loan fees)		(16,765	)		(16,678	)		(50,868	)		(51,424	)
Loss of extinguishment of debt		-			-			-			(9,111	)
Interest income		2			22			8			30
Other		164			(59	)		117			(92	)
Other expense, net		(16,599	)		(16,715	)		(50,743	)		(60,597	)
Income before income tax expense		8,793			15,218			18,967			13,897
Income tax expense		(5,270	)		(7,979	)		(10,387	)		(7,303	)
Net income		3,523			7,239			8,580			6,594
Net loss attributable to non-controlling interest		177			-			531			-
Net income attributable to General Communication, Inc.	$	3,700			7,239			9,111			6,594
Basic net income attributable to General Communication, Inc.   common stockholders per Class A common share	$	0.09			0.16			0.22			0.14
Basic net income attributable to General Communication, Inc.   common stockholders per Class B common share	$	0.09			0.16			0.22			0.14
Diluted net income attributable to General Communication, Inc.   common stockholders per Class A common share	$	0.09			0.15			0.22			0.13
Diluted net income attributable to General Communication, Inc.   common stockholders per Class B common share	$	0.09			0.15			0.22			0.13
Common shares used to calculate Class A basic EPS		38,600			41,768			38,614			42,940
Common shares used to calculate Class A diluted EPS		42,000			45,464			42,177			46,682

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
	Third Quarter 2012														Third Quarter 2011
			Network				Managed			Regulated							Network				Managed		Regulated
	Consumer		Access		Commercial		Broadband			Operations		Totals			Consumer		Access		Commercial		Broadband		Operations		Totals
Revenues
Voice	$	9,968		5,664		6,896		-			5,319		27,847		$	13,164		6,213		7,137		-		5,990		32,504
Video		28,394		-		3,142		-			-		31,536			29,155		-		2,830		-		-		31,985
Data		21,379		14,093		23,622		22,685			-		81,779			18,088		17,140		23,040		17,407		-		75,675
Wireless		27,066		7,718		2,548		-			-		37,332			28,860		6,114		2,565		-		-		37,539
Total		86,807		27,475		36,208		22,685			5,319		178,494			89,267		29,467		35,572		17,407		5,990		177,703
Cost of goods sold		33,027		6,194		16,607		5,230			1,696		62,754			27,436		9,531		17,232		4,540		1,925		60,664
Contribution		53,780		21,281		19,601		17,455			3,623		115,740			61,831		19,936		18,340		12,867		4,065		117,039
Less SG&A		33,699		6,157		10,028		5,723			2,621		58,228			31,737		6,300		9,358		4,031		3,027		54,453
Less Other		-		-		-		(164	)		-		(164	)		-		-		-		59		-		59
EBITDA		20,081		15,124		9,573		11,896			1,002		57,676			30,094		13,636		8,982		8,777		1,038		62,527
Add share-based   compensation		723		224		286		155			7		1,395			173		56		104		51		-		384
Add accretion		112		35		33		21			-		201			106		37		31		16		-		190
Add loss from   non-controlling interest		-		-		-		177			-		177			-		-		-		-		-		-
Adjusted EBITDA	$	20,916		15,383		9,892		12,249			1,009		59,449		$	30,373		13,729		9,117		8,844		1,038		63,101

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
	Third Quarter 2012														Second Quarter 2012
			Network				Managed			Regulated							Network				Managed			Regulated
	Consumer		Access		Commercial		Broadband			Operations		Totals			Consumer		Access		Commercial		Broadband			Operations		Totals
Revenues
Voice	$	9,968		5,664		6,896		-			5,319		27,847		$	10,483		5,962		6,804		-			5,409		28,658
Video		28,394		-		3,142		-			-		31,536			29,235		-		3,236		-			-		32,471
Data		21,379		14,093		23,622		22,685			-		81,779			21,523		13,412		21,917		21,717			-		78,569
Wireless		27,066		7,718		2,548		-			-		37,332			27,254		6,643		2,509		-			-		36,406
Total		86,807		27,475		36,208		22,685			5,319		178,494			88,495		26,017		34,466		21,717			5,409		176,104
Cost of goods sold		33,027		6,194		16,607		5,230			1,696		62,754			30,587		6,186		15,502		4,268			1,530		58,073
Contribution		53,780		21,281		19,601		17,455			3,623		115,740			57,908		19,831		18,964		17,449			3,879		118,031
Less SG&A		33,699		6,157		10,028		5,723			2,621		58,228			34,514		6,573		10,583		5,774			2,604		60,048
Less Other		-		-		-		(164	)		-		(164	)		-		-		-		(84	)		-		(84	)
EBITDA		20,081		15,124		9,573		11,896			1,002		57,676			23,394		13,258		8,381		11,759			1,275		58,067
Add share-based   compensation		723		224		286		155			7		1,395			440		129		194		94			8		865
Add accretion		112		35		33		21			-		201			85		27		24		16			-		152
Add loss from    non-controlling interest		-		-		-		177			-		177			-		-		-		177			-		177
Add non-cash contribution		-		-		-		-			-		-			89		28		26		17			-		160
Adjusted EBITDA	$	20,916		15,383		9,892		12,249			1,009		59,449		$	24,008		13,442		8,625		12,063			1,283		59,421

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULES
(Unaudited)
(Amounts in thousands)
	Nine Months Ended September 30, 2012														Nine Months Ended September 30, 2011
			Network				Managed			Regulated							Network				Managed		Regulated
	Consumer		Access		Commercial		Broadband			Operations		Totals			Consumer		Access		Commercial		Broadband		Operations		Totals
Revenues
Voice	$	31,731		17,190		20,786		-			16,265		85,972		$	40,541		18,124		22,050		-		16,958		97,673
Video		86,651		-		9,498		-			-		96,149			89,040		-		8,606		-		-		97,646
Data		63,351		41,858		67,376		63,431			-		236,016			52,046		47,135		63,653		46,041		-		208,875
Wireless		81,381		19,632		7,355		-			-		108,368			84,611		14,456		7,308		-		-		106,375
Total		263,114		78,680		105,015		63,431			16,265		526,505			266,238		79,715		101,617		46,041		16,958		510,569
Cost of goods sold		92,232		18,403		47,809		14,387			4,856		177,687			82,755		22,772		49,030		13,034		4,143		171,734
Contribution		170,882		60,277		57,206		49,044			11,409		348,818			183,483		56,943		52,587		33,007		12,815		338,835
Less SG&A		104,045		19,938		31,305		17,768			8,202		181,258			98,402		19,647		30,126		13,012		9,856		171,043
Less Other		-		-		-		(117	)		-		(117	)		-		-		-		92		-		92
EBITDA		66,837		40,339		25,901		31,393			3,207		167,677			85,081		37,296		22,461		19,903		2,959		167,700
Add share-based   compensation		2,047		632		813		478			20		3,990			1,686		569		646		323		-		3,224
Add accretion		301		95		88		57			-		541			257		88		73		38		-		456
Add loss from    non-controlling interest		-		-		-		531			-		531			-		-		-		-		-		-
Add non-cash contribution		533		169		156		102			-		960			-		-		-		-		-		-
Adjusted EBITDA	$	69,718		41,235		26,958		32,561			3,227		173,699		$	87,024		37,953		23,180		20,264		2,959		171,380

GENERAL COMMUNICATION, INC. AND SUBSIDIARIES
KEY PERFORMANCE INDICATORS
(Unaudited)
							September 30, 2012						September 30, 2012
							as compared to						as compared to
	September 30,		September 30,		June 30,		September 30,			June 30,			September 30,			June 30,
	2012		2011		2012		2011			2012			2011			2012
Consumer
Voice
Total local access lines in service		71,900		79,100		74,400		(7,200	)		(2,500	)		-9.1	%		-3.4	%
Local access lines in service on GCI facilities		66,900		73,200		69,300		(6,300	)		(2,400	)		-8.6	%		-3.5	%
Video
Basic subscribers		122,200		126,400		122,500		(4,200	)		(300	)		-3.3	%		-0.2	%
Digital programming tier subscribers		72,000		76,700		72,200		(4,700	)		(200	)		-6.1	%		-0.3	%
HD/DVR converter boxes		89,200		87,400		88,400		1,800			800			2.1	%		0.9	%
Homes passed		248,400		239,800		242,400		8,600			6,000			3.6	%		2.5	%
Data
Cable modem subscribers		113,100		106,800		111,700		6,300			1,400			5.9	%		1.3	%
Wireless
Wireless Lifeline lines in service		35,500		43,100		39,900		(7,600	)		(4,400	)		-17.6	%		-11.0	%
Wireless Postpaid lines in service		76,000		73,700		74,200		2,300			1,800			3.1	%		2.4	%
Wireless Prepaid lines in service		11,300		9,000		10,700		2,300			600			25.6	%		5.6	%
Commercial
Voice
Total local access lines in service		51,800		50,800		51,800		1,000			-			2.0	%		0.0	%
Local access lines in service on GCI facilities		30,500		27,200		30,200		3,300			300			12.1	%		1.0	%
Video
Hotels and mini-headend   subscribers		18,500		18,000		19,300		500			(800	)		2.8	%		-4.1	%
Basic subscribers		1,900		2,000		1,900		(100	)		-			-5.0	%		0.0	%
Total basic subscribers		20,400		20,000		21,200		400			(800	)		2.0	%		-3.8	%
Data
Cable modem subscribers		11,600		11,100		11,800		500			(200	)		4.5	%		-1.7	%
Wireless
Wireless lines in service		16,600		14,900		16,200		1,700			400			11.4	%		2.5	%
Regulated Operations
Voice:
Total local access lines in service		8,500		9,300		8,700		(800	)		(200	)		-8.6	%		-2.3	%
							September 30, 2012						September 30, 2012
	Three Months Ended						as Compared to						as Compared to
	September 30,		September 30,		June 30,		September 30,			June 30,			September 30,			June 30,
	2012		2011		2012		2011			2012			2011			2012
Consumer
Video
Average monthly revenue per   subscriber	$	77.45	$	76.85	$	78.89	$	0.60		$	(1.44	)		0.8	%		-1.8	%
Wireless
Average monthly revenue per   subscriber	$	67.98	$	72.60	$	67.69	$	(4.62	)	$	0.29			-6.4	%		0.4	%
Total
Voice
Long-distance minutes carried   (in millions)		243.0		253.2		241.3		(10.2	)		1.7			-4.0	%		0.7	%
Data
Average monthly revenue per   cable modem subscriber	$	62.85	$	56.17	$	63.64	$	6.68		$	(0.79	)		11.9	%		-1.2	%

General Communication, Inc.
Non-GAAP Financial Reconciliation Schedule
(Unaudited, Amounts in Millions)
	Three Months Ended
	September 30,			September 30,		June 30,
	2012			2011		2012
Net income	$	3.5			7.2		3.8
Income tax expense		5.3			8.0		4.0
Income before income tax expense		8.8			15.2		7.8
Other expense:
Interest expense (including    amortization of deferred loan fees)		16.8			16.7		16.9
Loss on extingushment of debt		-			-		-
Other		(0.2	)		-		-
Other expense, net		16.6			16.7		16.9
Operating income		25.4			31.9		24.7
Depreciation and amortization expense		32.1			30.7		33.4
Other		0.2			-		-
EBITDA (Note 2)		57.7			62.6		58.1
Share-based compensation		1.4			0.4		0.9
Accretion		0.2			0.1		0.1
Non-controlling interest		0.1			-		0.2
Non-cash contribution adjustment		-			-		0.1
Adjusted EBITDA (Note 1)	$	59.4			63.1		59.4

General Communication, Inc.
Non-GAAP Financial Reconciliation Schedule
(Unaudited, Amounts in Millions)
	Nine Months Ended
	September 30,			September 30,
	2012			2011
Net income	$	8.6			6.6
Income tax expense		10.4			7.3
Income before income tax expense		19.0			13.9
Other expense:
Interest expense (including    amortization of deferred loan fees)		50.9			51.4
Loss on extingushment of debt		-			9.1
Other		(0.2	)		0.1
Other expense, net		50.7			60.6
Operating income		69.7			74.5
Depreciation and amortization expense		97.9			93.3
Other		0.1			-
EBITDA (Note 2)		167.7			167.8
Share-based compensation		4.0			3.2
Accretion		0.5			0.4
Non-controlling interest		0.5			-
Non-cash contribution adjustment		1.0			-
Adjusted EBITDA (Note 1)	$	173.7			171.4

Notes:

(1) EBITDA (as defined in Note 2 below) before deducting share-based compensation,

accretion expense, loss attributable to non-controlling interest 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.