Exhibit 99.1
April 23, 2003
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 ANNOUNCES FIRST QUARTER 2003 RESULTS
ANCHORAGE, AK -- GCI (NASDAQ:GNCMA) today announced its results for the
first quarter of 2003. For the first quarter of 2003, the company expects net
income will total $2.6 million or $0.04 per share on a diluted basis, after the
cumulative effect of a change in accounting principle of $0.5 million or $(0.01)
per share on a diluted basis, net of income tax benefit. The expected first
quarter 2003 net income compares to net income of $2.2 million or $0.03 per
share for the first quarter of 2002.
Revenues are expected to total $92.8 million for the first quarter of
2003, an increase of 5.2 percent as compared to $88.2 million in the first
quarter of 2002. Earnings before interest, taxes, depreciation, and amortization
(EBITDA) is expected to increase to $28.9 million for the first quarter of 2003,
an increase of $3.8 million or 15.1 percent when compared to first quarter 2002
EBITDA of $25.1 million. Revenues for the first quarter increased sequentially
0.5 percent to $92.8 million as compared to revenues of $92.3 million in the
fourth quarter of 2002. GCI's first quarter EBITDA of $28.9 million compares to
EBITDA of $28.1 million in the fourth quarter of 2002. The expected EBITDA of
$28.9 million for the first quarter of 2003 includes a net $1.9 million
non-recurring refund in 2003 from a local exchange carrier for access services
rendered in previous years. GCI's first quarter 2003 EBITDA of $28.9 million
exceeded guidance of $25.1 million to $28.1 million.
"The results of the first quarter are in line with our expectations,"
said Ron Duncan, GCI president. "In view of the weak economy in the lower 48
states and WorldCom's special status, we are pleased with the results of our
long distance business. Our other business units continue to perform in an
exemplary way. We recently completed a major amendment to our senior credit
facility which extends the term of the facility to October 31, 2007, provides
new flexibility in spending on core-capital expenditures and will allow the
acquisition or construction of redundant long haul fiber capacity between Alaska
and the lower 48 states."
The company's local services business added 3,000 access lines during
the first quarter and now serves 99,000 local lines, an estimated 20 percent
share of the total access line market in Alaska. GCI's statewide dial-up
Internet platform remained steady at approximately 71,600 customers. More than
38,600 Internet customers are using GCI cable modem service, an increase of
2,400 over the fourth quarter of 2002. GCI cable television services now pass
198,380 homes and serve 136,283 basic subscribers. Basic subscribers increased
sequentially by 228 subscribers from the fourth quarter of 2002. GCI experienced
a slight loss in digital customers during the first quarter. Digital revenues
for the first quarter of 2003 are up 18.8% sequentially when compared to the
fourth quarter of
2002. GCI serves 30,200 digital customers in Anchorage, Fairbanks, Juneau and
Kenai.
Further detailed results and financial tables for the first quarter of
2003 will be released on May 7, 2003. GCI will also hold an institutional
investor and analyst conference call on May 8, 2003 at 2 p.m. Eastern time. To
access the briefing on May 8, dial 800-779-0488 (international callers should
dial 630-395-0017) 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.
The foregoing contains forward-looking statements regarding the
company's expected results which 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 Form 10-K and 10-Q filed with the
Securities and Exchange Commission.
Based on revenues, GCI is the largest Alaska-based and operated
integrated telecommunications provider. The company provides local, wireless,
and long distance telephone, cable television, Internet and data communication
services. More information about the company can be found at www.gci.com.
Non-GAAP Financial Reconciliation Schedule
(Amounts in Millions)
Three Months Ended
March 31, 2003 March 31, 2002 December 31, 2002
-------------- --------------- -----------------
EBITDA (Note 1) $ 28.9 25.1 28.1
Depreciation, amortization and accretion
expense 13.5 14.0 14.6
-------------- --------------- -----------------
Operating income 15.4 11.1 13.5
-------------- --------------- -----------------
Other income (expense):
Interest expense (9.2) (6.6) (9.0)
Deferred loan and senior notes fee
expense (1.1) (0.8) (3.2)
Interest income 0.2 0.1 0.2
-------------- --------------- -----------------
Other expense, net (10.1) (7.3) (12.0)
-------------- --------------- -----------------
Net income before income taxes and
cumulative effect of a change in
accounting principle 5.3 3.8 1.5
Income tax expense 2.2 1.6 1.0
-------------- --------------- -----------------
Net income before cumulative effect
of a change in accounting principle 3.1 2.2 0.5
Cumulative effect of a change in
accounting principle, net of income tax
benefit of $0.4 (0.5) --- ---
-------------- --------------- -----------------
Net income $ 2.6 2.2 0.5
================ =============== =================
Notes:
(1) EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is
the sum of Net Income, Net Interest expense, Taxes, and Depreciation and
Amortization. EBITDA is not presented as an alternative measure of Net Income,
Operating income or cash flow from operations, as determined in accordance with
Generally Accepted Accounting Principals (GAAP.) 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.